
Pros of using a flat fee real estate broker<\/h2>\nYou can budget for their fee.<\/h3>\n
If you\u2019re on a tight budget, it\u2019s comforting to know what you\u2019ll pay for the sale. You can budget your net proceeds<\/a> and thus, how much money you might have to put down<\/a> on the next house. Some home sellers prefer reducing the uncertainty in their home sale and knowing upfront how much the agent will make.<\/a><\/p>\n An agent who has already been paid, or who knows how much they\u2019ll make, might focus more on making you happy. The fruition of this benefit will depend on the agent and brokerage. They may feel less pressure to engage in aggressive sales tactics or hard-pitch their services.<\/p>\n Market forces influence your home price<\/a> when you use a flat fee agent. Agents who work on commission could underprice for a quick sale or overprice your home, wasting valuable time while it sits on the market.<\/p>\n With so much on the line, it\u2019s hard to feel like you\u2019re just handing your largest asset over into someone else\u2019s care. With some flat fee agents, you can set the price<\/a>, choose how to market it<\/a>, run open houses<\/a> yourself, and handle the negotiations<\/a>. You\u2019re also not necessarily tied to their schedule or availability for showings<\/a>, which could conflict with your family\u2019s calendar. An agent working on commission has the motivation to negotiate and get you top dollar<\/a> for your house. They\u2019ll market it online and through their network, and may already have interested buyers in their agency. When it\u2019s time to negotiate, they\u2019ll know which seller concessions<\/a> are common in your market.<\/p>\n Flat fee brokerages often make their money on volume \u2014 selling as many homes as possible \u2014 and might not invest the same amount of time and attention to your property. And they could rush through negotiations just to close the sale and move on.<\/p>\n Real estate commissions can be confusing, which is why many homeowners might think the flat fee is all that they\u2019ll pay. However, be prepared to pay more than just the flat fee Realtor\u2019s commission. A seller can budget for the listing agent\u2019s fee, but there\u2019s still unpredictability in the final selling price. And if you want to attract more buyers or speed up the home sale, you may still feel compelled to cover the buyer\u2019s agent\u2019s commission.<\/p>\n Some flat fee services only provide the bare minimum. Read the fine print and find out what that flat fee covers before you sign their contract \u2014 because, according to Allen, there\u2019s wide variability in what flat fee brokerages will and won\u2019t do for the client.<\/p>\n He says that some of them \u201ccharge additional money for photos, signage, and lockboxes, and there\u2019s not going to be any open houses in your home. The client is still in charge of scheduling showings and negotiating contracts. You\u2019re only paying for a service of getting your home on the multiple listing service (MLS).\u201d\u00a0 If you want your listing to attract interested buyers, you could wind up paying a lot out of pocket.<\/p>\n Do you know the laws in your state for seller\u2019s disclosures<\/a>? While they vary by state, most require that sellers provide some basic information about the home to potential buyers. If you fill these forms out incorrectly or purposefully omit something, you could face legal ramifications.<\/p>\n With a flat fee real estate broker, you\u2019re often on your own for completing much of the sale paperwork. Depending on the brokerage, they may not provide guidance (or could charge extra for legal help) when you complete these disclosures. A full-service agent will know what you must disclose and make sure that you\u2019re protected legally. A flat fee Realtor should not be confused with a flat fee MLS<\/a>, such as ISoldMyHouse.com or FSBO.com. A flat fee MLS service is considered an alternative to selling a house through the traditional process of using a real estate agent and is typically used by \u201cFor Sale by Owner<\/a>\u201d (FSBO) sellers.<\/p>\n The service allows FSBO sellers to get their homes listed on the MLS<\/a>. Normally, only licensed real estate agents can access and post listings on the local MLS, which means that FSBO sellers could have difficulty reaching buyers. A flat fee MLS service at least makes your home visible to the market.<\/p>\n<\/div><\/div><\/div><\/section> Yes. In real estate, almost everything is negotiable. Allen says that his agency will negotiate commissions<\/a>, and sometimes accept a flat fee, depending upon the situation.<\/p>\n \u201cIt comes down to just a few things: how easy is the home going to be to sell, how much advertising we\u2019re going to have to put into it, or if we have to spend additional money on online advertising,\u201d he says. \u201cEverything we do for our clients costs our money.\u201d If they know the listing will go extremely fast, or if the seller is also buying from them, they\u2019ll lower their commission.<\/p>\n Don\u2019t be afraid to reach out to an agent<\/a>, discuss your home sale, and ask if they\u2019ll negotiate a lower price. You might be pleasantly surprised. Here are some of the flat fee services in the country. Some list a flat fee on their websites, but others won\u2019t quote a fee until you input an address or select an area of the country.<\/p>\n<\/div><\/div><\/div><\/section> Some of these companies work with licensed real estate agents. Others pay agents a salary. Many are nationwide, but Allen points out that this could prove to be an issue. If they\u2019re not from the area, \u201cthey don\u2019t understand market trends, seasonality, which neighborhoods are hot, and can\u2019t help you on the pricing things.\u201d The decision to use a flat fee real estate agent depends on your circumstances. If you\u2019ve bought and sold several homes, you likely have some confidence in your negotiating skills. You know how the process works, and could likely navigate it without the hands-on guidance of a full-service agent.<\/p>\n If this is your first time selling a home<\/a>, it could be more difficult to work with a flat fee agent. Before agreeing to sell with a flat fee agent:<\/p>\n Above all else, ask if a flat-fee agent will ultimately save you money. Cost savings are the primary reason most sellers choose flat fee brokers, but there are alternatives.<\/p>\n Aside from accommodating budget-conscious sellers, there are specific scenarios where flat fee agents are ideal. Here are some situations you\u2019ll find these professionals particularly useful:<\/p>\n \n\n\n\n\nThey\u2019re focused on your satisfaction, not commissions.<\/h3>\n
The market sets the price for your house.<\/h3>\n
You may have more control.<\/h3>\n
Cons of using a flat fee real estate broker<\/h2>\n
You might not get top dollar for your house.<\/h3>\n
You might not save as much on commissions as you think you will.<\/h3>\n
You could incur additional expenses.<\/h3>\n
You\u2019re exposed to liability.<\/h3>\n
What is the difference between a flat fee Realtor and a flat fee MLS?<\/h2>\n
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Can I negotiate a flat fee with a traditional real estate agent?<\/h2>\n
How do I find a flat fee Realtor?<\/h2>\n
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Should I use a flat fee real estate agent?<\/h2>\n
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When should I use a flat fee real estate agent?<\/h2>\n
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