Hybrid real estate
Hybrid real estate is a form of real estate combining the services of traditional real estate agencies, flat fee MLS brokers and for sale by owner (FSBO).
Hybrid real estate companies have developed to fit a gap in the market and are proving popular with consumers, as seen by companies across the country. Hybrid agencies often charge a flat listing fee, and then small percentage at closing (i.e. 1/3%). Traditional agencies often charge 6% - 3% to the seller’s agent and 3% to the buyer’s agent - but this is negotiable and not set by law.
These companies combine elements from other real estate services, merging
- Full-service representation and contract negotiation of traditional real estate companies like RE/MAX and Coldwell Banker
- Low fee MLS Listing of Flat fee MLS
- Customer independence of FSBO for sale by owner
Role of Internet
More than 80% of buyers use the Internet to help find a home, according to the National Association of Realtors. Hybrid agencies use aggressive online marketing to increase exposure, and in turn, are able save clients money by relying on volume.
Technology like zillow.com, trulia.com, and streeteasy.com are shifting knowledge and power to buyers and sellers according to a recent USA Today article. This has changed the role of the real estate agent. Hybrid agencies accept and embrace new technology.
Regulatory Issues
Several states have adopted "minimum service laws". These laws require real estate professionals entering into exclusive service provision agreements with their clients to provide a state-mandated minimum service package that includes many of the duties associated with negotiating a property sales contract.
Unlike some flat feel MLS brokers, hybrid companies are in full compliance with laws because they provide all services a full-service broker offers, including contract negotiation, paperwork and closing documents.