Real estate has been working with the same model for the past 70 years, but everything we know about it is changing thanks to the Flat Fee model
I say “thanks to” because the old model benefited everyone except for the seller or property owner.
What is flat fee real estate?
A flat fee is also referred to as a flat rate, fixed-rate, or fixed fee. It refers to a pricing structure that charges a single fixed fee that a client pays a broker, realtor, FSBO site, etc… instead of a percentage-based commission, regardless of usage. Less commonly, the term may refer to a rate that does not vary with usage or time of use.
How does flat fee real estate work?
Firstly, we need to understand that there is no one size fits all type of answer to this question. Especially since there are a few different Flat Fee models on real estate out there. The three most popular ones are undoubtedly flat fee realtors, flat fee FSBO companies, and Our Property Team. Even when just talking about those two, in particular, every business operates differently. So I would recommend you to do your research before choosing one. However, I am going to generalize here a little bit in the comparison just for the sake of giving you a better idea of each.
Types of Flat Fee real estate companies and models
Flat fee realty
As the name suggests. When you choose a flat fee realty, you work with a realtor, services vary from one another a lot. Some give you practically everything a realtor would. But some others offer you pretty much next to no support at all. It is important to note. Always read the fine print, since some of these flat fee realtors agree to sell your house for a flat fee as long as some conditions are met. For example. They will charge you the low flat fee *only* if they also bring the buyer and get the buyer’s fee. Sadly most people realize this too late and it is not much you can do about it since they still use the infamous “exclusivity agreement”
Flat fee realty pros
Price
Flat fee realty cons
You still sign the infamous “exclusivity agreement” that benefits everyone but yourself.
Fine print (Might end up paying the full 6 percent)
Usually very little support
Usually, the service provided is minimal
Flat fee FSBO companies.
FSBO or For Sale By Owner websites. Are dedicated to people looking to sell their properties without using a realtor. This means there is no exclusivity agreement. And they very rarely have a “fine print”. There are a few FSBO websites out there, some are more tailored to people looking for something very specific, and some look more like a fixed fee realtor but without the MLS listing. Read more about the best FSBO sites in the country.
Flat Fee FSBO Websites pros
Price
Usually no “fine print”
Some offer support
Flat fee FSBO websites cons
Most do not offer MLS listing
Most post your listing on a couple of platforms
Leave you completely alone.
Our Property Team flat fee
Our Property Team Is an innovative and award-winning platform designed to be a one-stop shop for all of your real estate selling needs. Whether your goal is to save money, control the sale, or rely on a team of experts. Our Property Team has you covered! With different package options depending on your goal, you only pay for what you need! From just a flat fee MLS listing to full support with an in-house real estate lawyer to take care of all the legalities at no extra cost. From pricing to SOLD, we have you covered.
Our property team pros
Competitive pricing
One-stop shop
MLS listing (and 100’s more)
No exclusivity contract
No fine print
All services related to real estate selling
Full-time concierge
Our Property Team Cons
Currently not available in all 50 states
Why do we pay commissions to realtors?
Back in the 1950s. When the real estate agent commission based as we know it today this model was first introduced. And t really made sense since the median house in the United States of America was around $7,500. This means the listing agent charged around $450. Not bad at all, considering there was no internet back then and realtors had to do a lot more work. Learn more about the overall costs of selling real estate, “here”.
Selling real estate meant putting ads on newspapers, flyers, lawn signs, etc… But most importantly, what really made the difference was the listing agent’s network. This means all the people the realtor knew. They spent an incredible amount of time building relationships with other real estate agents and potential customers and calling them constantly to really be able to maintain a relationship and stay on top of their minds they could potentially need their services.
Modern Real Estate
As you know, we do not live in the 1950s anymore. And everything has changed quite drastically. I mean… The world has advanced so much, that technology that wasn’t available back then is even completely obsolete now. For example. Have you ever heard of a VHS tape? How about Blockbuster Video?
We have seen companies time and time again revolutionize their markets and make everything simpler and affordable for the consumer. Why are we still stuck in such a model then?
The future of real estate
Our Property Team has come to the united states of America to completely revolutionize and change everything we know about real estate. Our Property team leverages technology and a team of local professionals to bring you the highest level of services. But for a small flat fee compared to the traditional model.
Our Property Team allows property owners to sell their properties faster and for more while saving you thousands of dollars in unnecessary realtor commissions.
Why is a flat fee better than a commission?
Many people believe that a commission is way better than a flat fee. Because the more a real estate agent sells a property, the more they make, right? While that idea is not entirely wrong, one huge point most people do not consider is the proximity of the real estate agents and their biased nature. I mean, the same person “deciding” the price of your home is the one getting the commission. See what I mean? And at the end of the day, $20,000 (twenty thousand dollars) In your pocket is just a few hundred in theirs. Not just that, but you never know how much money you will be taking home at the end of the day.
When you pay a flat rate instead, you already know how much this will cost and how much you will take home. Flat fee systems are usually way cheaper than a traditional agent, saving you thousands of dollars.
When you hire a fixed fee company, the business providing you with the service is unbiased. At the end of the day, they will make the same amount of money no matter how much your house sells for or how quickly it sells. That is how you know, they will always have your best interest at heart.
In Conclusion
Flat fee real estate services are hitting the market harder than ever, especially since people are starting to think that agents are overpaid.
There are a lot of different types of flat fee services out there, with some being better than others, but Our Property Team is undoubtedly the clear winner here.
If you decide to go with any other flat fee services, just remember to read the “fine print”. So read the contract very very carefully, and compare your options. You would be surprised by the variety you can find for the same amount of money.
We strongly encourage you to do your research before committing to anyone.
After that, One of our representatives will be ready and happy to assist you.
