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 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 the event that flat fee is what preferred, it can be advantageous to 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. 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 makes sure that the discount realtor will retain a fee of less than 6,000 dollars and the client can save more cash on the sale of property.
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 is the advantage of being a flat fee realtor. 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. Conventional total of 6 percent commission is usually 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.
Consider working with flat fee realtor and discover the benefits that they can give.