Everything You Need to Know
About The Flat Rate
At TheFlatRate.com, we realize that in today’s technological environment, there is no need to pay a 5-6% sales commissions in order to sell your home. With over 30 years of experience in real estate brokerage, a business model built around technological efficency and an eye to the future, we offer an alternative that few traditional brokers can even imagine.
Our humble beginnings
The Moment of Inspiration
The real estate industry hasn’t changed for over 100 years. With recent technological advancements, including the ability to list and view homes online, the industry is heading in a drastically different direction than before. This shift sparked the idea of offering home sellers individual real estate services at a discounted rate, making the selling process easier, cheaper, and a whole lot less stressful.
The Old Way
Why Are Traditional Realtor Fees So High?
A selling agent’s commission is split and shared with the buyer’s agent and both brokerages involved, so the Realtor doesn’t get the full commission. Also, with many deals falling through, a Realtor assumes all of the risk involved with hours of time spent with no commission at all, leading to them raising their prices to compensate for lost deals.
Why Do Realtors Charge So Much?
Risk and Reward
The traditional real estate brokerage business model hasn’t changed in over a hundred years. A seller offers an agent a percentage of the sale price of the home if and when it sells (typically 5-6%.) When working with buyers, an agent is offered a split of that commission to bring a buyer and contract. Unfortunately, not all sellers sell and many buyers never end up buying. So how do Realtors get paid in those scenarios? They don’t. Since the agent is assuming all the risk (not getting paid) in this scenario, they need to charge much more just so it balances out. If you were only paid for half of your working hours, wouldn’t you need to charge twice as much - just to break even?
Follow The Money
Did you know that typically the commission is split four or more ways? Here’s how it works. A listing agent, who works for a brokerage, offers to split the commission with a buyer’s agent who also works for a brokerage. Both of those agents then must split the commission with their brokerages. That means your agent is probably only getting somewhere around 25% (based on what they have worked out with their agencies) of the commission you pay. Plus, the agents often outsource the transaction management to a third party - that’s one or two more folks with a hand in the pot. The more splits, the less income per transaction. This is an incredibly inefficient distribution of your money!
Changing The World Of Real Estate
Fixed, Low Fees
Our flat fee real estate products are offered nowhere else. We understand the real estate industry needs to change and we are in a position to be ahead of the curve. With decades of transactional experience, we have calculated fair and equitable fees for specific services, and even offer a bundle of all our services (and more) for a complete brokerage experience for only $4,999.
Division of Labor
Typically, the Realtor you hire is a one-person-show. They are responsible for every aspect of your listing. With decades of experiences in Maryland real estate, our team is well equiped to not only sell your home, but make it a stress-free experience and cater to your needs as a seller. Our team is broken into 4 departments:
Responsible for the entire company and all transactions. All founding partners are local REALTORS® and have decades of real estate experience in the Baltimore metro market.
Our licensed professionals are able to provide market analysis, input listings into the MLS, answer all questions about the property, and are also experts when it comes to contracts and closing deals.
Media & Marketing
With decades of digital media experience and access to the newest professional equipment, our media and marketing team will show off your home like never before.
Each transaction contains many forms, addenda, deadlines, contingencies, and more. Our team remains in contact with all of the involved parties in regard to these requirements.
Most real estate brokerages have multiple physical locations and that overhead is extraordinarily expensive. We have truly embraced the virtual office model and save substantially in the process. Most of our associates and much of our support and administrative staff work remotely. We maintain a minimal physical presence and pass those savings on to you.