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. 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 can be based on various 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 wherein flat fee is preferred compared to a commission based transaction.
In case that flat fee is what preferred, it can be beneficial either for 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. Say that the realtor is discount realtor, they can offer to service clients with a flat rate that is 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. 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. In most instances, the traditional overall total of 6 percent commission is split between the buyer agents and the seller. Flat fee is significantly different in a sense that it may or may not be split and can depend upon the set price that the parties agreed upon before the start of the transaction. Discount realtors may even be preferable to some people similar to homeowners who are seeking to sell their high end properties in which commission rates would be equal to 20,000 dollars and up.
Consider working with flat fee realtor and discover the benefits that they can give.