Selling a home has become an increasingly expensive business in Connecticut with sellers typically having to pay a 6% commission split between the seller’s agent and the buyer’s agent. For Sale By Owner (FSBO) homes are also losing their popularity as people find that experienced real estate agents do have a lot of specialized knowledge that gives an edge to your sale.
Flat fee real estate brokerage in Connecticut tends to bridge this gap by providing sellers a way to save on equity while not losing out on important services including listing your property on the MLS. Multiple Listing Service or MLS is a database that provides all information related to a property for sale. This is where most realtors and prospective buyers find homes. Getting your property listed on the MLS ensures that it will reach a wider range of potential buyers.
What is a Flat Fee in Real Estate?
A flat fee real estate brokerage is one where properties for sale are listed for a fixed charge as opposed to a percentage commission. It is an “a la carte” agreement between the seller and the real estate agent or broker in return for listing the property on the MLS.
Some flat fee real estate brokers in Connecticut may charge this fee upfront while others only charge it once the sale of the property is finalized. This arrangement ensures that the seller has the freedom to sell the home on their own and deal directly with the buyer’s agent. Flat fee MLS listing in Connecticut can save the seller approximately half of the traditional commission, more if the buyer’s agent also agrees to a flat fee.
Traditional Real Estate vs. Flat Fee Real Estate
- Flat fee MLS services can save you a lot of money: if your property is valued at $600,000 then you will end up paying close to $36,000 as commission. Compared to this, an agent that agrees to a flat fee MLS listing in Connecticut will only charge you in the range of $1000 to $3000.
- Traditional real estate agents offer you supplementary services: in addition to listing your home on the MLS, the agent will also be in charge of staging and photographing your house, showing the house to prospective buyers, and closing the deal. Experienced agents will also be able to price the home accurately and competitively for that area – a key factor that determines how fast the property might be sold. They will also take care of all legal documentation.
Before you choose between flat fee MLS listings or traditional real estate brokerage in Connecticut, you must decide what you are willing to compromise – a lesser commission or some supplementary services. That’s where Houzeo comes into the picture.
With cutting-edge technology and tools, only agents offer, Houzeo is the most-advanced FSBO platform you can get. The 100% digital paperwork streamlines home selling efforts, saving time and money because Houzeo is a flat fee MLS listing service that starts at $299 only! You can check reviews for the same on RealEstateQueen for better understanding.
Opting for the best flat fee MLS listing services in Connecticut will mean that there will be certain areas in which you will be on your own.
If you’re wavering over your decision, here are a few key advantages of opting for flat fee MLS listings in Connecticut that will help you take on the challenge.
Why opt for a Flat Fee Real Estate Company
- Get your property listed on the local MLS: this can only be done by licensed agents who will need to be compensated with a percentage commission from the sale of the house. With the flat fee advantage, experienced agents will do this service in return for a fixed charge.
- There is no hurry to close the deal: a real estate agent working on commission might be tempted to close the deal quickly since they get paid only after the sale. For an agent working for a flat fee, it rarely matters to close the sale as quickly as possible.
- A comparative market analysis: experienced real estate agents can help you better the prospects of a profitable sale by providing you with a comparative market analysis. This will, in turn, help you list and price your property accurately.
- Access to listing tools: an FSBO seller will be able to access MLS key boxes, marketing documentation, flyers, and more with the help of flat fee real estate agents.
How Does a Flat Fee Real Estate Work?
In a conventional, commission-based real estate transaction, the total commission is calculated as a percentage of the final sale price which is then split between the listing agent – for marketing and selling the home, and the buyer’s agent – for bringing in the client who ultimately purchased the house.
The total commission rate will be set upfront (i.e., before the sale of the house is finalized) when the listing agreement is signed. However, although the percentage rate remains fixed, the total amount you pay will vary depending upon the closing price. In short, the more the sale price, the bigger the commission will be. This means that the seller may not always profit from this transaction.
On the other hand, if you work with a flat fee MLS listing in Connecticut, the listing fee is not a percentage but a set amount agreed between the seller and the broker. This means that if the house sells for a bigger price than expected, the difference will usually end up as the seller’s profit.
Depending on the real estate company, you can opt from different types of flat fee MLS listings like tiered flat fee (where the flat fee can be set higher or lower depending on the final sale price) and hybrid flat fee (where for certain price ranges, you pay a flat fee and for others, you pay a reduced percentage rate).
How to Choose the Best Flat Fee Real Estate Company in Connecticut?
Before finalizing a flat fee real estate company in Connecticut, you need to ensure the following:
Strong reviews: does the company have a good reputation? What has been the experience of previous customers?
Relevant experience: has the agent assigned to you experience selling homes in your area? What has been his feedback from the client community? Does he specialize in listing and have a clear idea about the home listing protocols in Connecticut?
Multiple interviews: do not hesitate to interview multiple agents or do some background research on different real estate agencies so that you can find the perfect flat fee real estate agent in Connecticut to help sell your home to your advantage.