Disruptive house selling methods in real estate industry
The fixed fee – regardless of the value or final sale price of a property – is often lower than the commission real estate agents charge. Though in reality, disruption started over a decade ago with the migration of real estate advertising online. As its name suggests, instead of paying a commission to a real estate agent, you pay a set, fixed fee to a fixed fee agency.
They then allocate a ‘local property expert’ or agent who appraises your home and recommends a sale price. If the seller is happy to go ahead, they instruct their agent to sell for a fixed fee. This fee is advertised upfront, though what it includes can vary – but photography, floor plans and some marketing are typically part of the package. There is normally a slightly higher fixed fee if you want to sell via auction, to cover the cost of an auctioneer, and an extra charge if you would like your ‘local property expert’ to conduct your viewings for potential home buyers.
We analyzed the methods of Kiiz SA from Lausanne, which one offer Flat-Fee real estate services for swiss home sellers. the “Zero Risk” formula, namely a fee of CHF 7500.- Paying a fixed fee rather than a commission will save you quite a bit of money. How much depends on the type of flat fee service you choose.
Benefits of the Flat-Fee Method
– Lower Cost
The number one reason home sellers choose a flat-fee real estate service is that it can be significantly less expensive than a full-rate real estate agent. While you will still be paying some sort of a fee, it is at a fraction of the 1-3% commission you would pay otherwise.
– More Control
One of the best flat-fee selling points is that it gives home sellers more control over the entire selling process. From pricing your home and scheduling showings, to determining if you want an open house and negotiating a deal and inspections, when you sell your home on your own or with limited agent support, you make up your own rules.
Some flat fee real estate companies, like Kiiz SA, offer all the services of a commissioned broker, but with a fixed fee. Because of all of the technological advances, it is easier and quicker to get home listings on the market and sold quickly. It’s still important to consider all the services offered, like professional photos of your home and ongoing marketing. Companies are passing their savings on to the seller by offering a fixed fee rather than taking a percentage of the sale.