The Difference Of A Flat Fee Realtor Service
Flat fee realtor is basically a real estate salesperson as well who is licensed and paid a set amount for the services they offer than 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 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 case that flat fee is what preferred, it can be beneficial either for the realtor or for the owner. 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 ensures that the discount realtor will be able to retain a fee of less than 6,000 dollars and the client can save more money 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. For greater income is also high when you work on commission based salary but, the assurance of having flat rate income is great peace of mind as well.
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. In most instances, the traditional overall total of 6 percent commission is split between the buyer agents and the seller. Flat fee is much different in a way that it may or may not be split and depends upon the set price that the parties have agreed upon before the start of 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.