If you are in a dilemma as to whether you should hire a commission or a flat fee agent while dealing with buying or selling your home, you must know the difference in their working principle and outcome. This will help you in making such a tough decision easily. On one hand, commission agents charge a percentage on the sale price that cast as an incentive to work harder to get a higher bid. On the other hand, a flat-fee agent will offer you with similar service but at a comparatively low price. However, both has its pros and cons that you must consider making the right choice.
Flat fee concept
The flat-fee agent will do the same work as a commission-based agent but they will charge you a fixed amount. Agents charging flat fee will tell you about the prices for their service upfront. This will not alter with the selling price that your home will eventually fetch. You will get the positives of such arrangement right from the very beginning. This flat fee arrangement can be charged in two distinct parts. You will need to make a deposit with them when you sign up an agreement and the remaining part is paid in full once the property is sold. However, this arrangement may vary from one agency to another.
Real estate commission agent
The commission agent will take a percentage of the sale proceeds of your home. Different agents may charge different rate of percentage on the total selling price of your home and therefore you must shop around a bit while selecting your agent. For this you will first need to know the actual worth of your home. In order to earn more money as commission the agent will try to find out the best buyer to sell your home at the highest possible price.