The real estate landscape has changed over the years, with both brokers and clients both trying to get the best deals they can. But for many first timers in this business that meant getting accustomed to new terms and services, such as the flat fee brokerage. Although the concept isn’t new, it might take you a minute to clearly understand what that means and if it is the right way to do things or not.
In order to understand how aflat fee brokerage works, you must firstly understand how is it different from other pricing structures. For instance, although they might sound similar, “flat fee” and “flat rate” don’t mean the same thing. One major difference is that a rate is usually paid when the transaction is closed, as opposed to a fee which is paid when the listing itself is done.
So is it right for you?
There’s no simple answer to this question. There are a lot of people that use this system and swear by it, but there are also those that lean towards others, such as the 100% commission system. It all comes down to how the broker and the agency agree to split the money. For the broker, a 100% commission might seem like the obvious choice.
In order to help you make up your mind, companies like Realty45 Inc. offer full support in choosing between a flat fee and a 100% commission structure. They offer things like an online calculator that lets you compare directly what you are making at the moment and what you could be making if you choose to switch brokerage models. All in all, switching from one pricing structure to another – be it a flat fee brokerage or not – can be to your advantage if you do your research thoroughly and don’t just go with the one that is more popular at the moment.
