Nowadays, technology for real estate business has improved a lot, and hence, one can easily select a reputed real estate agent for selling property. Talk about their pay structure whether you prefer flat fee or commission.
It will be beneficial for you to compare a flat-fee realtor and any other traditional commission-based realtor and compare their fee structure.
Comparison between Flat Fee and Commission Real Estate
In order to meet customer needs, a lot of real estate brokerages now provide alternative commission structures. You will notice that the fee structure of any flat fee option remains the same irrespective of the sales value of your property, while the fee structure of the other option varies.
In the subsequent paragraph, we will discuss the commission fee that you may end up paying for both options, which will convince you that choosing the option to go for a flat fee structure is more beneficial to you.
What is Commission Real Estate?
Commission real estate operates on a percentage model, typically 5-6%. For instance, a $600,000 sale at 6% results in a $36,000 fee, shared with the buyer’s agent. While agents work hard before closing, sellers can negotiate commission rates, though agents are not required to lower them.
Commission Real Estate Notable Features
Let us compare both the services which will be mostly similar however the savings that you obtain from the Flat fee option is attractive. Let us make a one-to-one comparison between the two options:
Flat Fee service
- Organizes and hosts showings
- Lists homes for sale on MLS
- Supports photography, legal documentation, and marketing
- Negotiates with potential buyers
- Describes to sellers the advantages of an offer
- Saves sellers money with a low flat fee
Commission based Realtor
- Organizes and hosts showings
- Lists homes for sale on MLS
- Offers assistance with marketing, legal documentation, and photos
- Negotiates with potential buyers
- Describes to sellers the advantages of an offer
- Does not save sellers money with a low flat fee
This comparison helps you make a more informed choice by highlighting the salient features of each model. The above comparison finds the only difference between these two options is the commission structure. Let us compare these two options by considering the sale price of the property.
Flat Fee service
Your commission will remain a flat $5,000 whether your sales value is $400,000 or $750,000, or $1,000,000. There will be no change in the commission rate.
Commission based Realtor
However, in this option, you will find that the commission rate will significantly vary if your sale value increases.
The following will be your commission for different sale prices:
- A sales price of $400,000 will attract a commission of $12,000
- A sales price of $750,000 will attract a commission of $22,500
- A sales price of $1,000,000 will attract a commission of $30,000.
Conclusion
It is important to select a reputed and reliable agent for real estate in Oregon while selling your property. If you prefer a flat fee service, then you can save considerably on your commission compared to traditional services.
