Flat Rate or Commission?
When deciding how to select a real estate agent, many homebuyers and home sellers rely solely on one or two rudimentary facts. The two most common forms of referral for a real estate agent are by word of mouth from a friend and pricing. Pricing however, is by far, the most common means that real estate investors will use to grade a quality realtor.
While “You get what you pay for” is an old adage and has its merits, it is not altogether true in this instance. Conversely, finding the most successful agent in the country who charges what would otherwise be exorbitant fees is not necessary either. How then, does the average homeowner or homebuyer find a quality real estate agent based on price?
While flat fee services do offer package deals for the real estate investor at what usually seems to be a reduced price, care must be taken to make sure that the contract is read in its entirety. This real estate contract will define exactly what is and what is not included in the terms and the conditions of the financial transaction. If the price seems to be too good to be true, chances are that there is a reason for this.
Even a real estate agent who works on a strictly commission basis needs to be looked at closely regarding any financial transactions however. Some realtors will include all costs in their one low price. Many other fees are often not associated directly with the sale of the real property however, so they will still be reverted to the fiscal responsibility of the homeowner or homebuyer. The money may still be coming out of the pocket of the one using these services no matter whom they choose.
Ultimately, while the price of a real estate agent and the inclusions and exclusions of any listing or sales contract for a home should all be examined very closely, the bottom line price is still a deceiving number in the big picture of real estate investments. For most homeowners trying to sell their house or homebuyers looking to purchase a primary residence or even investment properties, finding the proper realtor is more than just finding the proper price.