Flat fee realtors and commission realtors are both types of real estate agents, but they operate under different payment models.
Commission realtors typically charge a percentage of the final sale price of a property as their fee, which is usually around 6% of the sale price. This fee is usually split between the listing agent and the buyer’s agent. Commission realtors typically provide a range of services, including listing the property, advertising, conducting open houses, negotiating offers, and guiding the sale process from start to finish.
Flat fee realtors, on the other hand, charge a predetermined flat fee for their services, regardless of the final sale price of the property. This fee can vary depending on the market, but is usually lower than the 6% commission charged by traditional realtors. Flat fee realtors typically provide a more limited range of services, such as listing the property on the MLS, providing some marketing materials, and potentially offering some advice on the selling process. However, the seller may need to handle other aspects of the sale, such as conducting open houses or negotiating offers.
This is not true for all flat fee realtors. There are some flat fee agencies that provide the same services as a commission realtor, they just do it for a more reasonable fee. Utah Flat Fee Agent is one of those agencies. This way you get the best of both worlds, but make sure you do your homework to make sure the agency is truly full service. You can read this article on the dangers of using a discount real estate brokerage.
In summary, the main difference between flat fee realtors and commission realtors is how they charge for their services, with commission realtors charging a percentage of the final sale price and providing a full range of services, while flat fee realtors charge a set fee and provide more limited services.