Flat Fee Realtors: A Guide
As a matter of fact, flat fee realtor is also a real estate salesperson who is licensed and paid a particular amount for the services they offer instead of getting a commission from the sale. In reality, these flat fee realtors are paid on closing set rate that had been agreed upon previously by all parties involved. Instead of paying the agent a commission or percentage of sales or lease price, flat fee is paid according to the transferring or closing title.
The fee might be based on several factors similar to length of time in which the realtor is planning to work for the client, the property is for rent or sale or any other circumstances to which flat fee is more preferred than a commission based transaction.
In the event that flat fee is what preferred, it can be advantageous to the realtor or for the owner. For instance, if someone is in the market to sell a house and it happens that the realtor fee of the traditional seller is around 3 percent which is going to be a total of 6,000 dollars commission if the purchase price is 200,000 dollars. If the realtor is discount realtor, then they can offer to service clients with flat rate of not greater than 6,000 dollars even if the purchase price of the house is higher than 200,000 dollars. This only ensures that the discount realtor is going to retain the fee of less than 6,000 dollars and the client can save cash on the sale of property.
The advantage of being a flat fee realtor includes having higher appeal to customers in the market to sell or buy a property and help those who are in need to save more money on commission. For greater income is also high when you work on commission based salary but, the assurance of having flat rate income is great peace of mind as well.
In general, these discount realtors may also offer to service client’s for sale needs of property owner and demand flat fee to pay only for the services required. Conventional total of 6 percent commission is usually split between the buyer agents and the seller. Flat fee is much different in a way that it may or may not be split and depends upon the set price that the parties have agreed upon before the start of transaction. Discount realtors can be preferable to some people like homeowners who are looking to sell their high end properties in which commission rates would be equal to 20,000 dollars and up.
So, you might want to consider working with a flat fee realtor if you wish to save money on the sell price of your property.
Source: Commission Free Real Estate