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. In reality, these flat fee realtors are paid on closing set rate that had been agreed upon previously by all parties involved. Rather than paying the agent a commission or percentage of the sales or lease price, flat fee is paid based on 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.
It can be advantageous either for the realtor or for the owner in case that flat fee is what’s preferred. 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. 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 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 greater income is also high when working on commission based salary but, the guarantee of having flat rate income is great peace of mind as well.
Generally speaking, the discount realtors may be offering to service client’s for sale needs of property owner and require flat fee to pay for the needed services only. Conventional total of 6 percent commission is usually split between the buyer agents and the seller. Flat fee is way more different in a way that it may or may not be split and will depend on the set price that the parties have agreed upon before the start of the transaction. As a matter of fact, discount realtors may be preferable as well for homeowners who are looking for ways on how they 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.