- Full-Service Commission-Based Companies: In a traditional full-service commission-based model, real estate agents provide a comprehensive set of services in exchange for a commission, which is typically a percentage of the home’s selling price. These services may include helping the seller to price the home, marketing the property, hosting open houses, negotiating with buyers, and guiding the seller through the closing process. The commission is often split between the seller’s agent and the buyer’s agent. It is customary for the seller to pay the commission, which is usually between 5-6% of the sale price.
- Flat-Fee Full-Service Companies: Flat-fee services also offer comprehensive real estate services but for a pre-set fixed price, regardless of the home’s selling price. This can result in significant savings for sellers, especially those who are selling higher-priced homes. The services provided can be quite similar to those offered by commission-based realtors, including listing the home on the Multiple Listing Service (MLS), marketing the property, facilitating showings, and assisting with the closing process. However, the specific services offered can vary by company, so it’s important to understand what’s included in the flat fee.
One thing to keep in mind is that while a flat-fee service can save the seller money on the listing side, a commission often still needs to be paid to the buyer’s agent (if one is involved) to incentivize them to show the property to their clients. This commission is typically 2-3% of the sale price. So, while a flat fee might save on listing agent commission, there’s still usually a buyer’s agent commission to consider.
As a homeowner, your choice between a traditional commission-based brokerage and a flat-fee service will depend on your specific needs and circumstances, including your budget, the real estate market in your area, and your level of experience and comfort with the home selling process.
Celester Thomas
