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. 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 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. 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 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.
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 greater income is also high when working on commission based salary but, the guarantee 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 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. 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.
Source: St. Louis Commission Free Realtor…Continue reading »