Flat Fee Real Estate: What You Need To Know
Do you want to sell your home without an agent? A basic flat fee real estate listing service from MLS will cost you on average between $ 299 and $ 399. Compare that to the standard 2.5-3% commission that real estate agents charge to sell your home and that means you could save thousands of dollars at your next sale.
However, these savings can come at a cost.
In many cases, you will be responsible for the entire sale, from the initial price to the final contract negotiations. We cover what you need to know about the pros and cons of flat rate MLS, as well as the best flat rate MLS listing companies.
If you are considering using a flat rate MLS service, another great alternative is a flat rate or low commission agent. They will handle much of the sales process for you, but you will still save a lot on commissions.
What is flat rate real estate?
Flat Fee Real Estate is exactly what it sounds like. Instead of paying a traditional realtor a percentage of your home’s sales price, you only pay a small lump sum for their services. In a traditional real estate transaction, you can expect to pay between 5% and 7% in commissions when selling a home. However, with Falaya, you can list your home at a low all-inclusive price, allowing you to keep more of your home equity.
We have adopted this strategy to change the real estate experience in the owner’s favor. By doing so, we can provide an unmatched customer experience, regardless of the price of your home. Whether your home sells for $ 200,000 or $ 2,000,000, you will continue to pay the same flat rate.
Reasons why you should hire a flat fee realtor
Save more and do more
The easiest and most common option today is to hire a real estate agent. However, that means you have to pay a fortune to get things done, not to mention costly marketing strategies as well. In a full-rate real estate agent, providing the agent with a 6% commission on the sale alone can be overwhelming, especially if your home is priced high. While FSBO (For Sale By Owner) can reduce the cost of commissions, it is not a good deal if multiple Listing Services (MLS) are not part of the package. Without access to a decent MLS, the chance for agents and buyers to find homes for sale can be slim to none. Well, of course, if you already have prospects of buying your property, then that’s reasonable.
A flat fee real estate agent is an inexpensive alternative that offers an efficient listing and process. This means you take away the annoying 6% commission and you can work more on your own.
Lower risk of compromise
Another tempting reason home sellers opt for a flat-fee property is because they have fewer promises to give. Because when it comes to the traditional method, you have to agree to various conditions from an agent. In this type of brokerage, you risk wasting your time and money by leaving with unfulfilled expectations. Since there can be unprecedented factors that can sabotage the home buying/selling experience, you need to make sure you don’t get caught up in this bad reputation.
The great thing about a fixed fee brokerage is that you can be on your own once you have paid the agent. Say nothing more about processing or wasting time with certain terms and contracts.
More control over the process of selling your property
Most traditional real estate only operates on a commission basis. The best thing about flat rate real estate is your control over the sales process – real estate listings, reservations, etc. This is one more reason why you can monitor transactions.
Flexible schedule and control
You don’t have to rely on limited rules set by your agent. Schedule home price projections, you are the boss – set your schedule, book projections. In general, you are responsible for the time and effort you invest in your property to make a sale.
The efficient and reliable sales process
All the formalities to sell your house would be very simple since it makes the process convenient and complete. From the marketing tactics, from listing on MLS to closing schedule, the commission you pay is worth its price. In addition, the process of negotiating with your property is easier and faster because there are few people included. Once your property is listed and promoted, you are ready to go.
Access to state-of-the-art technology
Through a flat fee broker, you will have access to MLS (data details and market analysis) so that the overall sales process runs smoothly. Gone are the days when only agencies and agents could access MLS, now you can mine the data yourself and solve it.
An MLS is an advanced technology that optimizes information to keep buying and selling homes efficiently and accurately. So when a potential client is interested in a property, they can find the right information by typing in certain keywords.
A large number of services are tailored to your needs
You don’t need to spend more on things you might not want. In addition to being in control of your schedule, you can also customize your services, which would help you a lot in the sale of your house.
How do flat rate real estate brokers work?
Instead of the traditional percentage-based commission, a fixed-rate realtor will help you list your home through MLS at a fixed rate. Since it’s for a lower price, they only provide basic support, which means you don’t get advice from start to finish. This can include pricing, marketing, closing, etc.
But if you prefer something other than the offered package, you can do so for an additional fee. These are some of the jobs they can provide with the full or custom service package.
- Help determine the sale price of your home based on different factors.
- Manage and track home visits for your convenience.
- Help you negotiate deals or deal with a weak player.
- Also market your property to other networks, for example. local agents, online sites and social media channels.
- Set a date for your home inspection and negotiate minor or major repairs for any defects.
- Give tips or advice on the proper staging of your home to increase the value of your home.
- Put up an agency or yard sign to attract buyers.
- Manage and monitor open doors.
- Schedule the closing date.
- Schedule a real estate photographer for the listing photos.
- Put a box of keys in your house.
- Guide you through the sales contract and other state regulations.
Can I register with MLS without an agent?
Accessing your local MLS is the best way to get the visibility your property needs, but only a licensed real estate agent can list a property in MLS.
What is an MLS?
An MLS, or multiple listing service, is a directory of properties available in a certain area. Each region or market has its own local MLS, and websites like Redfin and Zillow populate their listings from these directories.
Buyer’s agents search the MLS to find properties for their buyers. And with major real estate websites now relying on MLS, buyers are also increasingly searching for homes on their own.
What does an average flat rate MLS service offer?
Typically, companies listed on the MLS with a flat rate will advertise their real estate listing on the MLS for a one-time flat rate. That’s all you get unless you opt for an upgrade.
The most expensive plans or price tiers may include services such as:
- Marketing on social media sites
- Staging assistance
- Professional photography
- Pricing advice for your region
- Support in negotiations with buyers
- Help with closing papers
This type of support can shift into the territory of a limited-service real estate agent, where you pay a flat fee for more on-demand services.
If you know ahead of time that you will need more services, a low-cost real estate agent may be a better option. They are an excellent compromise between a flat rate MLS service and a full rate conventional agent.
If you want to save big, we can’t recommend Clever Real Estate highly enough. Smart agents only charge $ 3,000 or a 1% commission for full support. You will work with the best agents in your area for a fraction of the cost.
Flat Fee MLS vs. Flat Fee Real Estate Agents and Brokers
Due to these challenges, a flat fee MLS approach may not be the best fit for your situation. Fortunately, there is another option.
A real estate agent or flat rate broker also charges a flat fee for their services. This cost is typically higher than that of a flat-rate MLS listing service, but much lower than that of a traditional full-cost real estate agent.
With this approach, you benefit from the expertise and support of an agent at a lower cost. In addition to listing your home in MLS, your agent will generally help you:
- Prices for placing strategy
- Organization of open days
- Negotiation of the final sale price
- Closing bracket
Of course, not all flat rate real estate agents are the same. For some companies, a reduced rate means lower-cost services.