The fixed fee approach is also referred to as flat rate and has become very popular in the UK. People are finding it wiser to agree on a flat fee rather than paying real estate agents on commission. Although people now find it easier to advertise their houses online, those who still want to make use of agents prefer to pay them fixed fees.
How the Fixed Fee Real Estate Work
Just like the name suggests, you get to pay an agent or an agency a fixed fee instead of a commission when selling your property. The agency then proceeds to allocate an agent who estimates the value of your home and comes up with a sale price. If a seller is found and is willing to pay the estimated price, then, the agent is instructed to sell your home at a fixed fee. The fee is negotiated in advance although it might vary. However, costs that relate to floor plans, photography and marketing of the property are usually included in the package. If you are planning to sell your house at an auction, the fixed fee is set slightly higher in order to cover the auctioneer’s fee. Also, in case you want a local real estate expert to handle the viewing by possible buyers, you might have to incur an extra amount too.
Getting support for the period of the sale is usually from your local real estate expert and the support becomes accessible usually after you as the seller accept an offer from a potential buyer. However, if your house doesn’t get sold, you lose the fee after a specific period.
Benefits of Choosing a Fixed Fee
The real estate industry and house selling marketplace are very erratic nowadays, and homeowners know it. Each month comes with news of house prices escalating or plummeting drastically. The price usually goes hand in hand with the state of the economy. If the house prices keep going up, it is good news for homeowners wishing to sell. However, the volatility means that you can never be sure of how much your house is worth or how much it will cost you to have it sold. With this information, it would be better to go for a fixed fee since it doesn’t change no matter the final selling price. This means that even if you sell your house at a lower rate, you will not have to pay more than you had previously agreed on. On the other hand, selling your home at a higher rate means that you will enjoy more profits without having to share them with your real estate agent.
Having to pay a certain percentage means that you don’t have control of how much it will cost you until it gets sold. In this case, a fixed rate is more desirable since you might also have a fixed fee for the conveyance. This way, you will be sure of the amount your mortgage advisor is going to charge and you can, therefore, budget accordingly.
If you have the time to do the marketing and are knowledgeable about the property market, it would be wise to consider going the fixed fee way. Ensure you discuss with your agent when the fee is to be paid- before or after the sale as this determines how fast the agent will sell your home.