In the United States, there were 6.5 million homes sold in 2020. This year, that number is expected to climb even higher.
For first-time home buyers and sellers, the process can be hard to navigate.
What should you look for in a real estate agent? Should you sell your home by yourself? What is flat-fee real estate?
In this post, we will break down the difference between traditional agent commissions and flat-fee real estate. Keep reading for everything you need to know!
Traditional Agent Commissions
Real estate agents get paid through commissions. A commission is a percentage of the house that gets sold.
There is no blanket standard for real estate agent commissions. Many agents commonly take something around 3%.
The problem is, both the buyer’s and the seller’s agents take commissions, so this number can add up fast. If both the buyer’s and seller’s agents take 3%, you could end up paying a 6% commission out of your home sale.
Let’s say that your house sells for $300,000. 6% of that is $18,000. That’s a lot of money to pay someone for selling your house!
The reason why many people choose to sell their homes through traditional agents anyway is that real estate agents can guide you through the process. They can stage your home, reach a bigger audience, show your home for you, and help you navigate the legal steps of the sale.
But some people don’t want to commit to paying that much, so they look for other options. That’s where flat-fee real estate comes in.
Flat-Fee Real Estate
Flat-fee real estate is completely the opposite of traditional real estate. You only have to pay a flat, one-time fee, and flat-fee agents will list your home on a multiple listing service (MLS). This gets your home maximum traction with all prospective buyers since only agents have access to post on the MLS.
Again, there’s no standard amount, but the flat fee is sometimes between the range of $300-500. That’s a lot better for your budget! So what’s the catch?
Most flat-fee real estate brokers offer no supplementary services. You will be on your own when it comes to staging and photographing your house, showing your home, and closing the sale. There are some flat fee real estate brokers that have à la carte services too.
Without the step-by-step help of an agent, many people end up losing thousands of dollars on the sale of their home anyway. This is because they don’t know how to get the maximum value out of their house the way an agent does. If you are going to lose so much money, what’s the point in going with a flat-fee real estate agent?
There has to be a better answer.
You shouldn’t have to choose between paying hefty commission fees or having the guiding help of a real estate agent. At 1% Lists, we offer full-service real estate at a fraction of the price.
How is that possible? We use cutting-edge digital technology to streamline the processes of real estate. This allows us to perform full-service real estate for only a 1% commission.
With the other agent’s commission as well, you’ll only end up paying a 3-4% commission. This is a fraction of traditional real estate fees!
Reach Out to Get Started
At 1% Lists, we don’t believe in paying large commission fees for real estate services. So we combined the best of traditional and flat-fee real estate. We offer the best of both worlds: full-service real estate for a fair price.
Contact us today to learn more about listing your home!