Flat Fee Realtors

If you are planning on listing your home for sale in the near future, you are best served by understanding how and how much a realtor gets paid. For the most part, the seller pays the realtor from the profits from the sale, and this commission is paid out through escrow, prior to the seller getting his or her profit funds. Here, find out why some realtors get paid a flat fee.

Paying a flat fee instead of a percentage

There are several ways a realtor can get paid, and one of those ways is known as a flat fee. Getting paid a commission based on the percentage of the sale is the most common form of payment; however, some realtors prefer to get a flat fee. This means that an amount is agreed on prior to the commencement of the contract, and, upon completion, the realtor is given that amount through escrow proceeds. The reason some agents prefer this method is because they are guaranteed that amount, no matter for what price the house is ultimately sold. When the commission is based on the final selling price, it can dramatically affect the amount a realtor gets paid. In order to eliminate not knowing the exact value of their checks, opting for a flat fee guarantees that realtors receive a set amount of money instead of an unknown variable.

For some realtors, and sellers, it is good to know the exact final amount that is paid at the close of escrow. Opting for a flat fee can help eliminate an unknown for all the parties involved, and might make more sense than just leaving it up to chance, considering today's unreliable housing market.