What Is A Flat Fee Realtor?
Basically, flat fee realtor is a real estate salesperson who is licensed and paid a fixed amount for the services they’re offering 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 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. Say that the realtor is discount realtor, they can offer to service clients with a flat rate that is not greater 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. 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. In most instances, the traditional overall total of 6 percent commission is 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 may even be preferable to some people similar to homeowners who are seeking to sell their high end properties in which commission rates would be equal to 20,000 dollars and up.
So, if you would like to save on the sell price of your property, you better consider working with a flat fee realtor.