What is flat fee real estate?
So what is a flat fee realtor? Sometimes people call them discount brokers or value brokers. A lot of time clients believe they do not offer the full service as a regular traditional real estate agents and will cut corners to save cost due to the fact that they offer reduced fees to sell your home. That can be the case in some instances. There are companies out there that will just list your home on the MLS and you will have to manage all the rest. This service is mainly used for, people doing for sale by owner or FBSO. These are the three most common ways to get your home sold, Traditional Realtors, MLS listing companies (FSBO) and Flat Fee Real Estate brokers.
What are the costs associated with selling my home?
So on average a traditional real estate agent charges 5 or 6% Half of the fee goes to the cooperating broker that brings in the Buyer and the other half goes to the listing agent.
MLS listing Service Price varies on location and region on average it is anywhere from $500-$1000. It is always recommended to offer a cooperating broker fee. The reason why is a lot of buyers sign an exclusive right to buy with the real estate agent and they require in some cases 2 1/2 to 3% when completing a transaction. So the buyers would not want to pay an additional fee to the real estate agents just to purchase your home. A flat fee real estate brokerage on average can charge around $3500 for the listing plus a cooperating broker fee thats anywhere from 2.5 to 3%.
What should you look for?
Some companies offer more services than others Not all companies are equally the same. Any realtor, wether its a Flat Rate Realtor or traditional Realtor, they should always offer professional photography. A virtual 3-D tour is best. This saves you a lot of time from unnecessary showings. Make sure they give you a realistic home value for your property. Some agents will promise you the moon and the stars just so you’ll sign a contract. So make sure you always interview at least a couple agents and find the one thats right for you.