If you are in the market to buy or sell a home, it’s important to understand the different types of brokers available. A flat fee broker charges one flat rate for all their services with no additional costs involved. They charge a set percentage of your final sale price with no hidden fees, which can save you thousands on commissions. These real estate brokers work with buyers and sellers helping them reach their goals through negotiation, marketing, and customer service that is tailored to fit each individual client.
What is a Flat Fee Broker?
The flat fee real estate model evolved from the desire to help buyers and sellers save money on commissions related to home sales, which is typically what a real estate agent is paid for their work. While some traditional brokers flat-out refuse to consider flat fees, there are many that have accepted this approach with great results, offering great value and service through one flat rate. This type of brokerage model usually saves homeowners 5% – 7% or more on average than paying typical commission rates of 3%.
Why Should I Hire a Flat Fee Broker?
You Will Save Money
Flat-fee services are often preferred by home sellers because they can be much more affordable than full-time real estate agents. Although you’ll still have to pay a fee, it is a fraction of what a full-rate real estate agent would charge. Selling your home without access to the Multiple Listing Service is not recommended. Unless there is someone who is interested in buying your home, the MLS is how agents and buyers find your house. Flat fee brokers will allow you to access the MLS, which is the bulk of what you are paying them.
There Are No Obligations to Stay Dedicated to the Flat Fee Broker
You agree to terms and conditions when you sign up with a full-service agent. Unless your home is sold, you are bound to the agreement. If your agent or you decide that it is not in your best interest, the relationship will end. A flat fee broker allows you to leave whenever you like, but you must pay the fee. This is crucial because sellers may need to fire agents for misunderstandings, poor advice, or lack of attention.
You Pay Them For Services that are Right For You
You pay the full commission to a real agent for all of their services, such as establishing a sale price, home staging advice, key lockbox installation, MLS listings, agency signs, social media marketing, open houses, and more. Flat-fee agents will not likely provide all these services for their low fees. You are basically paying less for them to do less. The great thing is that a flat-rate broker may allow you to pick the services you require assistance with. This allows you to tailor the services to your requirements and avoid paying for services that you may feel are unnecessary.
Flat Fee Brokers Provide the Latest Technology
Only brokers and agents have access to the most sought-after technology for both buyers and sellers. Agents and brokers can also use technology to analyze market data to price your home. This is an important service, but flat-fee services in real estate provide the same access and many of the same technologies.
Your Schedule is What Matters
Flat-fee realty agencies are a great way to sell your home. You don’t have to follow an agent’s schedule. You are free to schedule open houses and closings according to your own schedule. The process can be completed as quickly or slowly as you wish.
Flat-fee agencies are a great alternative for those who want to save as much of their money as possible while also learning about the current real estate market. A flat-fee agent is the best choice if you only need limited support or MLS access. Do some research and contact a local flat fee broker today to get the best out of what you spend to sell your home or buy a home.