What is a Flat Fee Business Model?

When selling your home with a traditional business model Real Estate Firm, you typically pay a negotiated commission amount that is based on a percentage of the home’s sales price.  This commission is paid once the house “closes”…which means the buyer has gone through the escrow period and finally signs on the dotted line.  There is no “set” amount you are required to pay.  All commissions are negotiable.  There are typically two sides of the transaction.  The Listing Agent (representing the seller) and the Buyer’s Agent (representing the buyer).  Typically, they are from two separate Real Estate Firms, but sometimes with larger Firms they could both belong to the same Firm…this is called Dual Agency.

In the scenario where you may choose a Flat Fee Real Estate Firm, the Listing Firm charges a “Flat Fee” on the seller’s side vs. a percentage.  If the seller chooses to pay the Buyer’s Agent’s Firm a commission….it is typically a percentage of the sales price, nothing different there; and again all commissions are negotiable.

What does Carolina Flat Fee Realty Charge?

Carolina Flat Fee Realty charges sellers a Flat Fee of $4,500 on the “listing” side of the transaction.  This is a Full Service Representation model.  We do not do what is called “entry only” where the listing is simply put in the MLS and the sellers are left to negotiate and facilitate their own transaction.  We represent our clients all the way through closing.  The fee includes professional photographs and measurement of the home, as well as a social media marketing kit.  Probably the biggest advantage is our clients get our “representation” which includes over 40 years of combined “real life” real estate experience.  We do have discussions with our clients about the benefits of offering a Buyer’s Agent commission, which it is worth pointing out again; is negotiable.  Buyer’s agents play a very important role in the transaction….. a separate blog post to follow on that topic.

Our best advice is to compare our business model and fee vs. other business models and their commission structure.  This way, you can calculate your savings.  In this current market, our clients save on average $11,700.  This is based on a $450,000 home with a 6% total commission.  If your home is valued higher than $450,000, your savings will be higher as well. *6% is not a set amount; it is only used as an example. All commissions are negotiable.

What The Competition May Say

If they can’t negotiate their own commission, how are they going to negotiate on your behalf?

Our goal is to make it more affordable for sellers when selling a home.  Of course we negotiate on your behalf, but we save you the trouble of yet one more battle in a very competitive real estate market.  We also create trust.  Over the past few years real estate values have skyrocketed.  Some sellers may not have a lot of equity today if they bought within the last few years as the market has cooled.  Now, more than ever, this business model is needed and wanted.  We are simply responding to consumer demand.

They will not price the home correctly, they will leave money on the table.

We use the same comps and the same MLS as other licensed real estate agents.  We arguably have equal to… or “more” experience than the majority of licensed agents in the area.

They will not market your home.

We market your home.  We, like other agents are dependent on the market.  There are many factors that go into why a house will or will not sell.  Mortgage rates, location of the home, school zones, dog smells, odd layouts, the list goes on.  In this day and time the Internet and social media play a vital role of getting your home exposed.  Professional photographs are a must.  Promoting your home on social media and thousands of real estate sites are basically required now to get the best exposure.  These are all standard practices of our marketing plan.

In The End……

We are simply a choice.  We are another option for sellers.  Our suggestion is to do your research on the agent and the Firm when looking to sell your home.  We may not be right for everyone, but we certainly are right for many.