Flat Fee and the Broker?

A lot of new words are being bandied about the real estate world today, and many traditional brokers and agents don't like what they portend. The business of real estate has changed drastically in the last decade, going though highs and lows that no one would have thought possible just a few years ago.

In addition, new methods of marketing are becoming available. Some expand on ideas which were already in place, while some are entirely new in themselves. It' a changing world, and many are reluctant to embrace it.

For these fearful traditionalists, phrases like flat fee real estate are anathema. They reek of decreased profits, of a harder work week, of change. However, flat fees need not be entirely eschewed by brokers and agents; let's take a look at a few reasons to embrace change.

Expand your Market Presence

You may have to forget about a large commission payout, but word of your business will still get out when you make a flat fee option available to your customers. That word of mouth, and the presence of your brokerage's name on the listing, will help to generate more business.

Leave the Minnows and Focus on the Marlin

Commission based real estate is not dead, it's just going through a metamorphosis. Listing every house possible has never been in the best interest of any broker or any agent. Imagine a system which allows you to make a fee on smaller fry, while also allowing you to focus efforts on a large payoff?

Flat fees do just that. Take the thousand or so from a seller whose home would fetch you $8000 if you were to do commission, and if your agent was the one to sell it. Instead of making efforts here, strive to sell that higher end home, with the busy seller paying you a heavy commission in exchange for the sale. There's never been a better way to increase your point of sale profits.

Make Money Regardless

Although the layperson may not realize it, there were plenty of risks for brokers and agents under the traditional system. Personnel and company time could be spent in an effort to sell a home, only for another agent to succeed. With a flat fee, you are guaranteed that money no matter who actually makes the sale.

And the biggest reason of all to embrace flat fee real estate? Well, it's inevitable. Word's out already, the necessary tools are all in place, and sellers are going to opt for this choice more and more. Brokers and agent who don't adapt will eventually have to find new careers.