What Is a Flat Fee Real Estate Listing in Minneapolis, MN

by | Nov 17, 2022 | Real Estate

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When selling your house, the knowledge of a real estate agent or broker may be beneficial. But the cost of that assistance may be high. Home sellers often pay commission to the listing and buyer’s agent, who work together to consummate the deal. RealTrends estimates that as of 2021, the average nationwide commission fee is from 4.9 to 4.94 percent of the house’s sale price.

Real estate agents and flat-fee brokerages provide an alternative to the usual commission-based business model with a flat fee real estate listing in Minneapolis, MN. The listing agent will bill a set fee rather than a commission, depending on the ultimate sale price of your house under the flat-fee model.

Understanding the Flat Fee

In the real estate industry, the term “flat fee” refers to a non-negotiable, one-time payment made by a house seller to a broker or real estate agent instead of a commission that is calculated as a percentage of the home’s total sales price. With a flat rate real estate listing, the ultimate charge that you pay the agent or broker for their services is not affected by the price at which your house is sold.

How Flat Fee Differs From Commission-Based Listings

When a transaction is based on a commission, the agent or broker is paid a percentage of the property’s final sale price. When a transaction is a flat fee real estate listing in Minneapolis, MN, however, the agent or broker is paid the same amount regardless of the home’s final sale price.

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