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The Flat Rate Real Estate Commission System Saves You Thousands in Closing Costs

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Traditionally, real estate commissions have been calculated as a percentage of the sale price of a home. Real estate commission depends on the final sale price and is paid out and split between seller and buyer real estate brokers at closing. Real estate commissions are typically set by the selling broker and range between five and six percent of the sale price. Until now, this system has been the sole method for payment of broker services.
Licensed real estate brokers can now choose between charging a flat rate or percentage based real estate commission for their services. This one time real estate commission fee system is known in the real estate industry as Flat Fee MLS (Multiple Listing Service) and allows the seller to list his home on the Multiple Listing Service and other public websites for a one time flat rate that is paid upfront when you list. You will still have to pay the buyer broker a real estate commission, but this amount is only a fraction of the commission you would be responsible for under the percentage system. And, if there is no buyer broker, the flat rate ends up being your only real estate commission.
It is clear that the Flat Fee MLS system is the most cost effective way to sell your home. You will also benefit from the same quality of service as you would if you were paying a percentage based real estate commission. Some of the Multiple Listing Service agencies will even allow you to place a For Sale By Owner sign (with your telephone number) on your property, which can attract buyers directly to you from the website and save you thousands in real estate commission costs. However, most buyers do turn to brokers for help in finding a home, and some buyer brokers may be reluctant to bring their clients to your door if no selling agent is involved. An Agent Friendly tag on your For Sale sign will reassure those hesitant brokers. Initial inquiries will still come directly to you, but more traffic will come to your door if you welcome everyone, including brokers.
The flat rate real estate commission system gives you more exposure by allowing you to list your property on multiple websites and saves you thousands of dollars in real estate commission costs. You cannot go wrong with an effective sale strategy and higher net proceeds from the sale of your home.

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