Is A Flat Fee Broker The Best Way To Sell?
When selling a piece of property, it often seems like your only options are to pay an agent a percentage as a fee or to sell the place yourself. There is an in-between option, though. A flat fee real estate broker can help you post a listing and deal with inquiries.
This process is a bit different than the usual system of working with an agent. Here are 5 things you ought to know before you decide to go in this direction with selling your property.
Costs
Commissions usually range between four and seven percent of the closing price. Especially when dealing with very expensive properties, that can take a healthy chunk out of your possible profits.
Payment Structures
There are many ways to set up the fee structure. Some folks prefer to pay on a per-day basis, an approach that allows a seller to get out of an arrangement quickly if they're not happy with a broker. Others pay flat fees upfront, and some will pay the fee on a contingency basis when the place sells. Just be clear with the broker about the type of arrangement you're looking for.
Access to the Multiple Listing System
The multiple listing system, often called the MLS, is the backbone of modern real estate search capabilities. If you've ever shopped online for a property through a brokerage, there's a good chance the data was processed by the MLS. MLS listings are available to all folks plugged into the system so a broker looking to help a buyer can find a house, for example, that was posted by a different agency.
Working with a flat fee MLS broker will put your listing into the system. That gives prospective buyers access to your listing.
Simple Incentives
For folks selling lower-value properties, there can be a fear that the broker won't be interested in pushing it because the commission isn't big enough. A major advantage of working with a flat fee real estate broker is they have a simple incentive to get the job done: collect the fee. If you're trying to move a low-price property fast, this can be a difference-maker.
Less Likely to Produce Disputes
When a house sells, there's a risk that not everyone will be happy with how the commission is settled. The upside of a flat fee is that conversation ends with whatever the fee is. There's no discussion about the closing costs or what the percentages were supposed to be. The math is simple, and closing out the deal is even simpler.
For additional information, reach out to a local flat fee real estate broker.
