What is a limited-service real estate agent?

As you might expect, a limited-service real estate agent provides fewer services than a full-service agent does for a lower price.

Many limited-service brokerages start and stop at listing your property on the local multiple listing service (MLS). Only licensed real estate agents can list on the MLS, which is why many For Sale by Owner (FSBO) sellers hire a limited-service real estate agent to complete this task.

Getting an MLS listing is nearly essential in today’s housing market: About 90% of sellers use their local MLS to list their homes. The MLS also automatically syndicates the listing to other property websites for broader exposure.

Besides listing your property on the MLS, limited-service agents might offer additional services as part of their fee. And some may have tiered pricing based on which services you desire:

• Set up a lock box: A combination lock box containing a key to the property that allows buyer’s agents to show the house when the homeowner isn’t available.
• Provide “for sale” signs: Your agent may provide professional signage that includes your contact information. But you’re in charge of liaising with prospective buyers if you go this route.
• Advise on aspects of selling your home: For an additional fee, a limited-service agent may offer consultation on pricing, marketing, or negotiating strategies.

Fees for limited-service agents vary

Some limited-service agents charge a flat-fee averaging about $3,000, but the cost depends on the agent and the market. Other limited-service agents charge a reduced commission ranging from 1% to 2%.

If you use a flat-fee MLS listing agent, keep in mind that the broker usually sets an expiration date for your MLS listing, often about 60 days, and you might need to pay an extra fee to renew it.

A limited-service real estate agent should give you a contract that clearly outlines what services are included, what’s not, and the costs and length of the agreement.

“Rule #1 is ‘everything in writing,’” says top agent Shawn Rogers, who works with over 65% more single-family homes than the average agent in Gilbert, Arizona. He emphasizes the importance of having a written record to ensure both parties are on the same page.