The Difference Of A Flat Fee Realtor Service
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. Rather than paying the agent a commission or percentage of the sales or lease price, flat fee is paid based on the transferring or closing title.
The fee can be based on various 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 wherein flat fee is preferred compared to a commission based transaction.
In case that flat fee is what preferred, it can be beneficial either for 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 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.
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, you might want to consider working with a flat fee realtor if you wish to save money on the sell price of your property.