Flat Fee Realtors: A Guide
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. 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 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.
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 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, 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. The conventional total of 6 percent commission is typically 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.
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