Agent changes pricing to match market

Nate Miller, (Bio) nmiller@greeleytribune.com
May 11, 2008

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Brad Davis put his Fort Collins home on the market last summer. The home, like many in this buyer's market, didn't sell.

The price was too high.

"I think for me, it was just finding that sweet spot," said the 39-year-old who plans to move out of Colorado. When Davis found the Owners Realty service through the Windsor-based Resident Realty, 1601 Pelican Lakes Point Unit 201A, he was able to reduce his price. Owners Realty offers sellers a $99-per-month flat fee, plus the buyer's commission, for full Realtor services, said Craig Plantz, managing broker at Resident Realty, who came up with the idea. Traditional full-service Realtors charge a commission on the sale of the home.

Davis said once he signed on with Owners Realty, he was able to reduce the price of his home by about $13,000.

"It made a huge difference for me," he said.

Plantz, who began using the innovative pricing structure at the beginning of this year, said he started the flat-fee as a way to help homeowners who were facing foreclosure but couldn't afford to sell their house. Since he launched the service, he has been busy, Plantz said.

"It's just remarkable how much business it's getting," he said.

As an example, in December, he had 30 to 40 active listings. Now he has 85 to 100. Plantz said he still offers the more traditional commission structure, which through his company is 1 percent of the sale price plus the buyer's commission. He said about one in four clients opt for the commission approach instead of the $99-a-month fee.

Plantz said many of his colleagues are surprised he can charge what he does.

"They don't know how I make money," he said.

Plantz relies on volume and automation of things such as drafting contracts to make the system work. Mostly, however, he said it works because it's a good deal for customers.

"You can hire me today and if you don't feel like you're getting service you can fire me, and your risk is the $99," he said.

John DeWitt, president of the Greeley Area Realtor's Association, said he couldn't speak about a specific offering. He said consumers should compare levels of service when they pick a Realtor.

"Sellers need to know that they're getting what they're paying for," said DeWitt, who is the managing broker at ReMax Alliance, 3459 20th St. in Greeley. "Are they getting maximum exposure?"

Davis said he was happy with the service he got when he used the flat-fee pricing structure. He signed on with the Owners Realty service about two months ago and got lots of interest. He is about a week away from his final closing. Plantz and his staff guided the process throughout.

"They did all the transaction for me," Davis said. "His office did all the showings."

Plantz said even though the idea began as a response to the slow real estate market, he plans to continue to use the system even when the market as a whole turns around.

"This is the way I'm going to run my business in Colorado," he said.

BREAKOUT

For more information about Windsor Realtor Craig Plantz's $99-a-month pricing structure, go to www.ownersrealty.com.