How do Menu Programs Work?

In another article, we looked at the idea behind menu programs in the real estate world. They offer clients the chance to pay lower amounts, and only for services which are relevant to their home selling experience. It's a concept that is pretty straightforward, but let's take a look at some particulars so it becomes crystal clear.

The Full Meal Deal

First of all, there is the traditional real estate agreement. Under this agreement, the seller pays the agent a commission, a percentage (6 or 7) of what the house sells for. In return, the agent agrees to undertake certain measures in order to make sure the house sells. This may include a lawn sign, a certain number of showings, inclusion on a brokerage's MLS, a lockbox, advice on closing, negotiating assistance, and so on. You get all of these things, for the full price.

But I don't Need all that Stuff!

The truth is that for the average home seller, all of these included items are really not needed in order to sell and get the best deal on their property. In fact, only one or two items may be what helps to sell the house, in the end. And the last thing you want is to pay the full price when it includes services you didn't even need! So…

Menu Programs Offer Options

Instead of a one size and price fits all solution, menu programs will take specific services offered by agents and brokerages and break them and their prices down individually. If all you want is to be included on the MLS, for example, you might pay a flat fee of $500.

On the other hand, you may want the MLS, a lock box, negotiating assistance, and consultation during closing. In that case, the agent or brokerage would offer you a package deal including these items. The price would logically be somewhere between the commission amount and the flat fee.

As you probably see by now, the range of choices offered by menu programs will vary from brokerage to brokerage, just as menus do from one restaurant to another. Some may offer strictly flat fees or package deals, while others may opt for a la carte. Finding a program which suits your tastes is up to you, but it's good to know they're out there!