Published on October 19th, 2018 | by admin0
A Flat Fee Realtor Service May Be The Best Choice For Consumers And Investors
Any type of property dealing will involve real estate commissions that may be anywhere from 5% to 6% of the transaction amount. This is quite a big sum and larger the amount of transaction, bigger is the commission amount. However, there are no fixed rates for commission as this is illegal but still this practice is followed even by the large, popular and full service firms. Though buyers do not have to think much about such commissions but sellers seriously considers this while making a property transaction. It is for this reason sellers often think of a flat fee Realtor rather than a commission agent.
From the consumers viewpoint
Looking from the consumers’ standpoint, most do not realize a line item is the settlement sheet for the commissions paid. They think it is entirely on the seller’s headache. However, it is naïve to overlook this aspect. Ideally, the sellers simply factor their expenditure into the selling price. That means it is the buyer who pays the whole bill, just indirectly. This has resulted in the adoption of the new reimbursement models. This often involves a flat fee or even an hourly rate charged to the buyers and then rebating the variance in the buyer’s agent commissions and giving it back to theclient.
From the Investors standpoint
As for the investors, this new conception is fast and readily accepted. The primary reason behind this is that they can factorin all of the charges of the transaction. They can see the savings that they make in the process. However, the investors may not want to pay any commission to the agents for showing homes to prospective buyers or engaging in any office activities to locate any deal. That is why the enterprising real estate agents often want to come out of this commission model with a hybrid arrangement with the investors.