Flat-fee real estate agents are a growing trend, and for a good reason. It's not out of the ordinary for a commission-based agent to take5% or more from your sale. That's a hefty sum that you could put to better use in your kids' college fund, making home improvements or just socking away as capital gains. Ultimately, all you want is to get your home sold for top dollar without any headaches or delays. With flat-fee agents, you can save on commissions, which can be put to better use elsewhere.
What is a Flat Fee?
A flat fee is a fixed price you pay to a real estate agent, regardless of the outcome of the sale and how long it takes them to sell their home. A flat fee is the cost of a real estate agent's services, paid in advance and without additional commissions or other fees.
The flat fee can be set at the beginning of a sale or lease agreement or negotiated into the contract itself. It is often used by sellers who want to avoid paying a commission to a selling agent. If the seller finds a buyer who does have an agent, the seller will be responsible for this commission.
The Difference Between Flat Fee and Commission-Based Real Estate
A flat fee is a one-time fee paid to a real estate agent, for a select array of services to assist with listing your property.
Commission-based real estate, on the other hand, works on a commission. The seller pays the agent a percentage of their final sale price.
Lower Cost – What is a Realtor's Percentage?
The benefits of a flat-fee real estate agent include lower cost for key services.
In most markets, realtors charge a percentage of the home's selling price as their commission. For example, if you sell a home for $200,000, your local real estate agent may charge 3% in commission. So if you sell your home for $200,000, the agent will receive $6,000.
A flat-fee real estate agent charges one fee for their services. Like a commision based agent, a flat fee agent will have an agency agreement that outlines the timeline of their flat fee service along with the specific services they will provide. Unlike a commission based agent, by working for a flat fee, flat fee agents will likely have more select or limited services than a commission based agent. However, for Sellers seeking to maximize their returns, a flat fee agent might be a perfect match.
A flat-fee agent provides you with the most important tool you need as a seller, access to the market. They will go into contract with you and be able to outline their services as well as the timeline leading up to when your house will be listed. If you’re comfortable handling some of the work that an agent might do such as showings or negotiating, a flat-fee agent is an affordable way to get your listing in front of the rest of the agents in town through Multiple Listing Service (MLS).
A flat-fee real estate agent can offer flexible scheduling, meaning they can work with you when it's convenient. This allows them to work around your time, making things much easier if you have an unpredictable schedule.
Trust the Experts at Rochford Law
Let's face it, navigating the real estate market can be confusing. There are many options in the market, making it difficult to decide who to trust if you don't know what you're doing.
At Rochford Law, we believe in transparency and integrity inreal estate closings. We believe selling your home is a major decision in your life, so you should have someone on your side who is completely dedicated to helping you in all real estate closings.Get a free consultation today to get help in navigating every step of selling your home.