What are the Pros and Cons of Flat Fee Real Estate Brokers

1. What are the Pros and Cons of Flat Fee Real Estate Brokers? A real estate agent’s expertise can be helpful when selling your home. However, their full support often comes at a hefty price—between 5-6% of your home’s sale price split between them and the buyer’s agent. If you want to save money and avoid that commission fee, flat-fee real agents can be an alternative. Unlike traditional Realtors, a flat-fee agent charges a minimum fixed fee and takes care of a few aspects of selling a home, usually the marketing. They will list your home on the Multiple Listing Service (MLS) to increase exposure and give you a chance to sell faster. This approach can save you time and money, as the final price to sell your home won’t impact the ultimate fee that goes to the flat-fee real estate agent. It seems a great way to cut costs when selling your home, but before you jump in, take the time to understand the pros and cons of working with flat fee real estate agents. The benefits  Clear upfront costs The main advantage of flat-fee real estate services is that their costs are fixed and are significantly cheaper than those of the commission-based approach. The upfront costs are as stated in the agent’s agreement and won’t increase or decrease based on your home’s selling price. This means you know exactly what to pay for before closing.  Potential savings Flat fees are not impacted by your home’s final sale price, making them less expensive. In most cases, the cost is lower than the commission. Still, this depends on the terms and the additional services you request from the flat fee real estate agents.  More control for you With a flat-fee agent, you’re responsible for setting the price of your home. Similar to an

2. FSBO (for sale by owner) approach, you are in control of showings, negotiations, and open houses. The disadvantages  Limited services Some flat-fee agents may not offer the same level of service as their commission-based colleagues. They will simply list your property on a local MLS, while the rest is up to you.  Less profit Flat-fee real estate services are often in the seller's favor, meaning the agent may profit less. That said, this business model is about volume, so the more sellers they help, the better.  Potential liabilities Choosing a flat-fee MLS service means much of the work is up to you without a professional real estate agent’s guidance. This includes doing all the paperwork, like the seller’s disclosures. Some homeowners can make mistakes that could cost them more later. Are you interested in flat-fee real estate? Real Estate Corners makes selling your home a breeze with its flat-fee real estate agents. They can help you sell your home for at least $399. Get started by calling (612) 483-1230.