Advantages Of Flat Fee Real Estate Brokers
Do you know you can improve the probability of a successful real estate transaction by engaging the services of real estate brokers? In such an engagement, you may face the dilemma of choosing between flat fee and fixed-rate fee real estate brokerage. Below are the key reasons you may consider engaging a flat fee real estate broker.
What Is a Flat Fee Real Estate Brokerage?
In the real estate industry, a brokerage firm facilitates the selling and buying of properties. Ideally, a property seller enlists the services of a brokerage firm to find, negotiate and close deals with buyers.
A real estate broker fulfills the following services in property transactions:
- Conducting property valuation
- Listing and advertising property
- Organizing for property viewing
- Negotiating and processing sales agreements
Subsequently, a real estate broker receives compensation for the services offered. The payment can be in the form of flat fees and fixed-rate fees. A fixed-rate fee is a commission set as a fixed percentage of the property's selling price. In comparison, a flat fee rate is a fixed fee that is not pegged on the final selling price of a given property.
Advantages of Flat Fee Real Estate Brokerage
Low Service Cost
In any case, one has to pay the brokerage service charge. The alternative would be to do personal selling and miss out on the services of professional brokers. Thus, the decision between the two rates narrows down to cost. In selecting the best alternative, consider the value of your property. A flat fee rate is comparably more inexpensive when selling a high-value property. Ideally, a high-value property attracts higher fixed rates and fewer profits for sellers.
No Hidden Costs
A flat fee broker focuses on getting the best sales deal, while a fixed-rate broker aims at a quick sale to earn the commission. The motivational difference has an impact on service costs. To close a deal faster, the fixed-rate broker will want the property to be in the best condition. Thus, the broker will advise the client to make property updates, some of which are unnecessary. These updates cost the seller and reward the broker. It is, therefore, reasonable to use a flat fee broker since they are not in a rush to close a deal.
Flat rate brokers are more patient and composed in the negotiation process since they are paid a full salary. Thus, they are more likely to hold firm on their offers and counteroffers to get the best outcome for the seller. In comparison, fixed-rate brokers aspire to close a deal fast and move on to the next. This haste may compromise the negotiation skills. For instance, the broker may lower the bargain at the slightest hint of losing the sale.
The ideal agent must deliver and offer professional services despite the payment method. However, a flat fee real estate broker is motivated and committed to getting the best deal and not necessarily the easiest one.
Contact a local flat fee real estate brokerage to learn more.