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 general, flat fee realtors are paid on the 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. To set an example, if someone is in the market to sell a house and the realtor fee of the traditional seller is 3 percent which is a total of 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 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.
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. In most instances, the traditional overall total of 6 percent commission is 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.
Consider working with flat fee realtor and discover the benefits that they can give.