The Essential Laws of Properties Explained

The Difference Of A Flat Fee Realtor Service

As a matter of fact, flat fee realtor is also a real estate salesperson who is licensed and paid a particular amount for the services they offer 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 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. In case that the realtor is a discount realtor, you may expect them to offer to service clients with flat rate of not higher 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.

Generally speaking, the discount realtors may be offering to service client’s for sale needs of property owner and require flat fee to pay for the needed services only. Conventional total of 6 percent commission is usually split between the buyer agents and the seller. Flat fee is way more different in a way that it may or may not be split and will depend on the set price that the parties have 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, you might want to consider working with a flat fee realtor if you wish to save money on the sell price of your property.