What to Expect When Working with a Flat-Fee Real Estate Agent
- Posted on January 25, 2023
- In Real Estate
Working with a flat fee real estate agent can be a great way to save money on selling your home. Instead of charging a percentage commission like typical listing agents, they instead charge a flat fee while providing essential services that will help you with listing and selling your home.
But there are important things to keep in mind when making this decision. That’s why we’ve put together this list of what you can expect throughout the process.
Some factors you can expect includes:
- Upfront Costs
- Lower Total Costs
- Negotiating an Offer
When it comes to working with a flat fee real estate agent, the biggest benefit is that you will pay a much lower cost upfront. Instead of the traditional 6% commission, you will usually pay just a few thousand dollars in flat fees for the agent’s services. This cost covers their time, expertise and access to the Multiple Listing Service (MLS), but will not include any closing costs or legal fees that may be due at the end of the process. Depending on the specific flat fee service provider you choose, additional services such as open house hosting and showings can also be included for an additional cost.
These upfront costs are generally non-refundable, so it is important to shop around for the best rate and make sure you are comfortable with the services that you are paying for.
Lower Total Costs
When you work with a flat fee real estate agent, you'll save on total costs compared to working with a traditional real estate agent. Since the flat fee agent does not collect a commission, you won't have to pay a percentage of your home's final sale price as you would if you used a traditional agent.
Additionally, the flat fee agent may be able to negotiate better terms with buyers or sellers, leading to additional savings. This means that if you are working with a flat fee real estate agent, you could end up paying thousands of dollars less in total fees than you would if you were to use a traditional real estate agent. Along with saving money, flat fee agents may also offer additional services, such as handling all paperwork which would save you time and effort in the home buying or selling process.
Negotiating an Offer
When working with a flat fee real estate agent, you will be responsible for the process of negotiating an offer. This typically includes reviewing the offer, assessing the terms and conditions, and negotiating on your behalf. You may also be responsible for making counter offers or communicating any decisions to the buyer.
The negotiation process typically includes multiple rounds of communication between the two parties until an agreement is reached. During this time, your flat fee real estate agent can provide advice and guidance as to what terms are reasonable and beneficial for you. It is important to remember that your real estate agent is not an attorney and cannot provide legal advice.
The length of time it takes to negotiate an offer depends on the complexity of the situation and how long it takes for the buyer to respond. Generally, the process can take anywhere from a few days to a few weeks before an agreement is reached. It is important to be patient during this process and to make sure that you are in constant communication with your flat fee real estate agent.
Work with the Experts at Rochford Law
At Rochford Law & Real Estate Title, we’re here to help you with your real estate and title service needs. If you need help to decide on a broker, please contact us at (615) 269-7676. We’ll help you make the best decision based on your goals.