Are you wondering whether fixed fee real estate agents are worth it? If so, you need to hear these four benefits.
Have you heard of low commission real estate agents? How about flat-fee real estate brokers?
I bet you’re thinking that both of those sound pretty appealing especially if your expected profit from the sale of your house is not what you were hoping it would be.
You may be one of those people who thinks, “Why should an agent make more money for doing the same job just because my house is worth more money?”
Fixed fee real estate agents can make sense in many scenarios. Are you wondering if it’s worth it? If so, you’ll want to find out more about these four benefits.
4 Benefits of Fixed Fee Real Estate Agents
The average real estate commission is 6%, but that percentage is predicted to decrease. One reason is changing technology and real estate marketplace. Plus, competition in real estate is fierce. There are many ways to market and sell a home, including using a flat fee broker.
1. Significant Savings for the Seller
Paying a fixed fee rather than a commission will save you quite a bit of money. How much depends on the type of flat fee service you choose.
If you choose a flat fee just to have the home listed on MLS, it may cost you around $500, but you will likely have to still pay the buyers’ agent a commission and the listing doesn’t mean your home will be properly marketed. You’ll still need to consider professional photos, gaining additional exposure, signage, pricing and more.
If you choose a more involved service for around $2500-3000, you’ll still pay a commission to the buyers’ agent, but you’ll get a little more service for the fee. At VerraTerra, located in Snohomish County and servicing the greater Puget Sound area, we charge only 1% seller commission and you’ll never pay more than $6,000. Our fee is full service, including over 18 real estate broker services from listing, marketing, ongoing and closing services.
Either way, if your home sells for $400,000, for example, you will still have saved a huge sum of money. A traditional commission on $400,000 would be $24,000. You will have saved close to $20,000 using a fixed fee real estate agent.
2. Same Fee No Matter What Your House is Worth
If you have a million dollar home or a $200,000 home, the fee is the same. Sellers with more expensive homes to list definitely realize the savings to be had with a fixed fee real estate agent. Remember to verify exactly which services are included in your flat fee listing. Many flat rate services charge a flat fee, but then add extra fees for normal things a seller needs to sell their home for the highest profit as quickly as possible.
3. Agents Like to Turn the Homes Over Quickly
Because the agent is making less money on each sale, fixed fee real estate agents like to get homes sold quickly. More sales equal more money coming in for them.
They have to sell a greater number of homes to make the amount of money they would at a higher commission rate.
4. Flat Fee, Full Service
Some flat fee real estate companies, like VerraTerra, offer all the services of a commissioned broker, but with a fixed fee. Because of all of the technological advances, it is easier and quicker to get home listings on the market and sold quickly. It’s still important to consider all the services offered, like professional photos of your home and ongoing marketing.
Companies are passing their savings on to the seller by offering a fixed fee rather than taking a percentage of the sale.
Getting Ready to Sell Your Washington Home?
If you are getting ready to list your home, we can help you decide on the best course of action. Is a full service, fixed fee real estate agent the choice for you? We think so. After all, there’s no reason to pay a real estate sales commission based on the sale price of your home when you can get the same service for a fraction of the cost. Keep more profit from the sale of your Seattle area home in your pocket. Contact VerraTerra real estate brokers today.