The Difference Of A Flat Fee Realtor Service
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 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 the event that flat fee is what preferred, it can be advantageous to the realtor or for the owner. To set an example, if someone is in the market to sell a house and the realtor fee of the traditional seller is 3 percent which is 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.
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, 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. Conventional total of 6 percent commission is usually 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. 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.
Consider working with flat fee realtor and discover the benefits that they can give.
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