Flat Fee Realtors: A Guide
Basically, flat fee realtor is a real estate salesperson who is licensed and paid a fixed amount for the services they’re offering instead of getting a commission from the sale. Generally, flat fee realtors are being paid on closing set rate that had been agreed upon previously by all parties involved. Rather than paying the agent a percentage or a commission of sales or lease price, flat fee is paid depending on the transferring or closing title.
The fee may be based on a number of factors like the 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 in which a flat fee is preferred than a commission based transaction.
In case that flat fee is what preferred, it can be beneficial either for the realtor or for the owner. To give you a quick example, if someone is in the market selling a house and the realtor fee of traditional seller is 3 percent which is equivalent to 6,000 dollars commission if the purchase price is 200,000 dollars. In case that the realtor is a discount realtor, you may expect them to offer to service clients with flat rate of not higher 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 benefit of being a flat fee realtor is quite a lot like having higher appeal to customers in the real estate market to sell or buy a property and help those who are in need to save more money on commission. Potentially for higher income is also high when you work on commission based salary but the guarantee of having flat rate income adds great peace of mind too.
In general, discount realtors might offer to service client’s for sale needs of property owner and require flat fee to pay for just the needed services. The conventional total of 6 percent commission is typically 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, if you would like to save on the sell price of your property, you better consider working with a flat fee realtor.
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