The Difference Of A Flat Fee Realtor Service
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. 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 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.
It can be advantageous either for the realtor or for the owner in case that flat fee is what’s preferred. 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. 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, 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. The conventional total of 6 percent commission is typically 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 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.