What Is A Flat Fee Realtor?
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 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. 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 only ensures that the discount realtor is going to retain the fee of less than 6,000 dollars and the client can save cash on the sale of property.
The benefit of being a flat fee realtor is quite a lot like having higher appeal to customers in the real estate 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. 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.
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