Today, more and more Washington, DC home sellers are looking for a way to save, particularly by reducing or eliminating agent commissions, when money is so tight. To that end, some vendors prefer the option of for-sale-by-owner (FSBO) (although this is not recommended for first-time sellers) while others use a real estate agent with a flat fee. However, this latter choice isn't something many people know about. So here's a rundown of the pros and cons of using a real estate agent on the market for flat fees.
As we mentioned, under the usual 6 percent agent commission, more and more Washington, DC home sellers want to get out. And one way they do this is with an agent with a flat rate. But what's it exactly?
As the name suggests, for their services, flat fee agents charge a flat (set) fee rather than a commission based on a percentage of the purchase price-a fee varying from 3% to 6%, but typically about 6%. While you don't get as many resources as with a traditional real estate agent, the use of a flat fee real estate agent on the market still has some pros.
Using a real estate agent on the market for a flat rate means you'll pay less. "The number one reason home vendors choose a flat-fee real estate service is that it can be considerably less costly," and they still get access to the MLS.
Another benefit of using a Washington, DC real estate agent on the market for a flat fee is that you are not locked in and can move on if you want to. "When you sign up with a full-service real estate agent, you agree to those terms and conditions," industry insiders explain. If your home sells, or if you or your lawyer agrees that the arrangement is no longer in your best interests, you are locked into an agreement. However, with a flat-fee broker, once you pay the fee, you are free to go wherever you want. Selling your Washington, DC house, you would definitely be committed to paying only for the current month if you go the pay-per-day path.
You are paying for a whole package of comprehensive facilities with a conventional real estate agent. But you do not want all those programs or need them. However, when you use a flat fee agent, you're not going to spend a lot of money for services you don't need.
“However, with a flat-rate broker, you will be able to pick the services you need support with and which you think you can handle yourself. You tailor the services to your needs in this way and do not pay for items you do not like, such as an open house.”
You will also have more control over the whole selling process. “You make up your own rules, from pricing your home and arranging showings to deciding whether you want an open house and negotiating an offer and inspections when you sell your Washington, DC home on your own or with minimal agent help..”
There are just two cons actually, but they're major ones.
When you use flat-fee real estate brokers, what can be a pro is also a big con. And that's the fact that you get far less facilities, despite saving money. Basically, an MLS listing is what you get for your fee.
That's not always a negative thing, but it depends on the conditions and priorities of your sales.
“Are you familiar with the old saying that you're getting what you're paying for? The phrase can often hold true when it comes to selling a home. Such is the case while dealing with a broker for flat payments. You're going to pay a little less than you would if you were dealing with a typical agent, and you're going to get less services as well. Is it decent value, then? It actually depends on your priorities and the amount of work you are prepared to do on your own..”
Using a real estate agent on the market for a flat rate also means you'll have to do a lot of work. All the pricing, promotion, showing, bargaining and closing activities that a conventional agent will normally take care of for you would have to be done by you.
And you're going to have the job of determining if a flat fee agent is right for you. In the sales process, if you want and have the resources to manage all those duties, then a flat fee agent could be right for you. You still have to consider all the pros and cons carefully and determine which is the best course.
Is it right for you to use a flat-rate real estate agent on the market? Of course, the answer to that question is, "It depends." Do you and should you do much of the sale on your own, or will a typical agent's experience and services be a better match for your needs? Don't make an incorrect decision. Please contact us today by sending us a message or calling us.
William Pek
I'm here to assist reader's about how to buy or sell home. I'm Professional author about home buying or selling. I have 25 year's experience in this field.