If you’ve been doing real estate research, you may have come across the term “fixed fee real estate.” Read this article to see what fixed fee real estate means.
As real estate prices climb higher, the standard 6% broker fee that sellers pay is starting to come under fire. When some neighborhood homes went for $100k a few years ago, the fee seemed reasonable. But now that prices are skyrocket and the work remains the same, it might make more sense to settle on a fixed fee.
If you’re new to fixed fee real estate, it’s where you and your broker agree on a reasonable price for their work, regardless of the selling price of your home. This can (and in most cases will!) save you money and still yield the same high priced sale that you’re aiming for.
Negotiating with your broker will ensure that you know what to expect and close your sale quickly. If you’re still wondering about the benefits of a fixed fee agreement with your broker, here are the top three reasons you should consider one.
1. No Last Minute Confusion
When you have a listing agent and buyer’s agent involved, there is typically a commission split with complex terms. Most sellers and buyers have no idea how the structure actually works and who pays how much for what.
Buyers and sellers will negotiate over commission in most transactions, but not when you agree on a fixed fee.
You can avoid the complicated tango of contingencies, clauses, and stipulations by making your agreement simple and easy.
2. Fixed Listings Save Money
If you hold multiple properties, you might want to work with someone who works for a fixed rate. If you sell some properties at a lower price, you’ll build a relationship with a broker.
If you happen upon one or two much more expensive properties, your broker, who knows how you work, could cut you a deal. Because of your working relationship, you could save tens of thousands of dollars through loyalty and fixed price listings.
3. Fit Your Budget
Under the terms of a 6 percent fee agreement, you’re subject to fluctuations in the market. If the market suddenly spikes, selling your house becomes easier for your broker. But as the chances of selling increase and prices climb so does your broker’s fee.
Agreeing on a flat fee means you’ll likely pay less in the end. If you know what your home is worth, come to the broker with a figure in mind. They might be willing to bite and to help push your home for a rate that leaves you with extra funds for your next location.
Fixed Fee Listings Make Selling Easier
Deciding on a fixed rate approach could be one of the easiest decisions you make about selling your property. Rather than following a fluctuating market while you’re planning for your next property or the next phase of life, you can agree on a fee and move on.
If you’re ready to get a broker at a fixed rate, contact us today to find a perfect fit.