Are you looking to sell your home? If so, you are probably wondering what type of selling strategy you should use. This is a common debate for home sellers – should you stress over selling your own home, go with a traditional real estate commission agent, or eliminate all stress by going with a flat fee real estate agent?
We understand that choosing the right brokerage can be difficult. The internet has made brokerage’s easier to find than ever before. Your first step should be to understand the various types of real estate commission models.
The main types of real estate brokerages are limited service brokers, traditional real estate brokers, and flat fee real estate agents. The difference between each of these is their approach to the cost of commission and services.
What is limited-service real estate?
Limited service brokers provide different services depending on the brokerage. These services range from the photography of the home to MLS listings, but do not include all the benefits that come with a traditional brokerage. Most individuals choose a limited-service real estate broker because the commission fee is lower than 6%.
Oftentimes, limited-service real estate brokers will assist with listing your home on an MLS, and then expect you to do the rest until it is time to close on the house.
What are traditional service real estate commission types?
Traditional real estate agents offer more of a full-service experience. Real estate agents will take care of every service, and then coordinate the closing process. A traditional broker commission model is usually6% on closing, which is going to cost more for you as home sellers.
To put this into perspective, if your home was listed for $300,000 and you sell your home for full listing price, your real estate agent will get a 6% commission totaling $18,000. This total is not simply going to your real estate agent, but also the real estate agent of the home buyer.
Where does Flat Fee Real Estate come into play?
Flat fee real estate agents are ‘traditional’ agents without the cost of paying 6% on commission. When we talk about a flat fee real estate agent, it means precisely what it says. You will be paying a flat fee regardless of how much your home sells.
If your home sells for $300,000, $9,000 needs to be set aside for the buyer’s agent. If you combine the $9,000 with your $2,500 flat fee, that totals at $12,000. Without a real estate commission type of agent, you will be left with $6,000 in your pocket.
A flat fee real estate agent does the same amount of work as a traditional agent. There are virtually no cons to using a flat fee model. In fact, this model will help you save money that can be put towards your future house endeavors.
Exsell’s expert flat fee real estate agents do it all. Our agents don’t cut corners just because they are getting paid a flat fee rather than commission. Flat fee real estate agents value the personable aspect, as well as the longevity of our agent-to-home buyer/seller relationship.
Want to see how much you could save on your home? Start here.