The working principle of the flat fee real estate agent works differently for buyers and sellers of a property. Knowing about it will help you to make a better decision as to whether you need a flat fee real estate agent or the ones that will work on a commission and fetch a higher price for your property. When it comes to property dealings these flat fee agents will offer all types of services that any other real estate agent working on behalf of the buyer or seller will do. Therefore the only difference lies in the service price and not in service quality.
As for the buyer
Working for a buyer, the flat fee real estate agent will charge a fixed percentage of the total sale price. Most of the agents charge 2% of the entire sale price or a lump sum base price, whichever is less.The only difference in service of these flat fee agents as compared with the other real estate agents is that they may rebate a portion of the amount received. This rebate may or may not be offered as per the business policy and the amount of rebate depends on the price of your home. For example, a flat fee agent may charge at least $3,000 or 2% of the sales price and rebate the remaining of their commission to you.
Benefit for sellers
Depending on the business policy of the real estate agent you choose to sell your home, you may be offered with two different levels of service. Offering full service these flat fee agents will provide you with services that are provided by any traditional real estate agents that will include property visits, market analysis, meetings, MLS listing, showings and negotiations along with ongoing guidance and coordination during closing and charge you after your house is sold.