Flat Fee Real Estate Agent
What is Real Estate?
Real estate can be defined as land and the structures build on it including all the natural resources on that piece of land. These resources may include minerals, water or any other immovable natural object. The real estate business is the buying, selling and renting of these land properties.
Who is a Real Estate Agent?
A real estate agent is a person who represents an owner of a real estate and deals with buyers on the behalf of the seller of a property. The real estate agent is also termed as a real estate broker (if licensed). He or she is a person and or an agency that attempts to find suitable buyers for a property and then help negotiate a deal between buyers and sellers. There are various differences in the laws of many countries regarding the legal status of real estate agents and their services.
How is Real Estate Business performed?
In developed countries, real estate agents help sellers by evaluating the possible selling price of their properties and then finding buyers who are willing to pay these prices. They usually take payments from both sides of the equation of a property deal. An agent usually works for both the seller and buyer side of the deal and takes payments from both parties in case of a successful sale. Some common business can be summarized as following:
- A broker or salesperson (Real Estate Agent or Realtor) providing services to both parties is called a dual broker and it is a very common market practice in real estate business.
- Usually at the start of a deal, the real estate agent represents the owner of the real estate.
- As potential buyers appear, a broker or salesperson (Real Estate Agent or Realtor) may offer to help them negotiate a best price solution. This is known as undisclosed dual agency. It is illegal in most countries.
- However, a broker or salesperson (Real Estate Agent or Realtor) can help a buyer if he or she clearly discloses his agency as both as a client and a customer.
In many countries, such a broker is required to have a signed agreement from both parties to work dual agency. Otherwise, the broker’s practicing license can be cancelled by the government authorities. Although real estate brokers or salespersons (Real Estate Agents or Realtors) require a license in most of the world, lawyers are also permitted in some states to handle real estate sale agreements.
What is a Flat Fee in Real Estate Business?
A flat fee is a fixed amount of payment usually charged against a limited set of services. It is a linear payment taken against a provided work or service. In real estate, it refers to the practice of charging a fixed fee in return of limited mentioned and agreed services. A flat fee is usually paid at the time of service agreement between an agent and a property owner.
What is Flat Fee Listing?
Flat fee service providers usually list properties in the MLS listing. They also allow the seller to advertise using the real estate broker’s contact information. This is known as an FSBO or a For Sale By Owner advertisement. There is some confusion among properties listed both in MLS and in advertisements as FSBO. This multiple hosting of property helps find potential buyers at a quicker pace. An advantage of flat fee is also that if a seller finds a buyer by himself, he or she is not entitled to offer the broker a commission on the sale of the property. Flat fee service providers offer many packages for the number of services. If you just want to list your property using a broker or a salesperson (Real Estate Agent or Realtor), they can charge very minimal fixed fee. This costs the seller much less than the commission he would have had to pay for a successful sale. Sellers can also easily change brokers when selecting specific flat fee services. A flat fee subscriber can gain many benefits in the MLS listing rules.
Why are Flat Fee Services getting popular?
A question arises that if there is less money as a flat fee then why is this mode of business getting popular among real estate agents. In recent years, it became difficult to sale your house due to crumpled economic situation and intense competition. Some of the advantages of Flat Fee services are:
- Flat fee contracts help sellers save some money so that they can offer a very competitive price for their property thus gaining a slight edge over the stiff competition.
- It has been found through research that when completing a deal from listing a property to a successful sale of it to a buyer takes a long time. This long time drains the resources of real estate brokers and they also
- have to fund their own activities as they get a commission only when the property is successfully sold.
- The Flat Fee services also provide them a quick and efficient way of ensuring a profit from a real estate property.
- A flat fee service also puts less emphasis on them and much of the important decisions are the sole discretion of the property owner. This situation offers them a much better return of profit over the amount of spent resources for a deal.
- These flat fee solutions are providing a good alternative method in real estate business for all parties.
Trackback from your site.