Real Estate
Since its settlement in 1706, Albuquerque, New Mexico, has grown into a metropolis of over 700,000 people. The Sandia Mountains tower over one side of Albuquerque, while the Rio Grande Valley stretches out from the opposite side. The history and Southwestern culture of New Mexico add flair and flavor to the industry and economic progress of the city.
Paying your real estate agent was once only a matter of commission. Now, many real estate agents in Albuquerque offer fee for service plans.
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| Population 448,607 | Median Age 34.9 yrs | Household Size: 2.40 |
| Avg Commute: 20.4 min | Avg Income $38,272 | Avg Home Value: $127,600 |
| July High: 91.5°F | January Low: 22.2°F | |
Albuquerque Fee For Service
Paying your real estate agent was once only a matter of commission. Now, many real estate agents in Albuquerque offer fee for service plans.
Commission isn’t the only way real estate agents are being paid today. With the advent of Internet real estate agencies, many agents have begun to offer fee for service prices in Albuquerque. This pricing system is great for consumers who want to choose the services they receive from an agent.
How Commission Works
When real estate agents are paid on commission, the seller typically pays the fee. An average commission amount is 5 percent to 7 percent of the home purchase price, and both the buyer’s and the seller’s brokerage offices split this amount. Each office then pays a portion of the earnings to its respective agent who was party to the sale. The actual amount earned by a real estate agent involved in a home sale is approximately 1.5 percent of the purchase price.
Why Fee for Service?
Real estate agents began to offer fee for service pricing several years ago in response to competition from online real estate and brokerage companies. These companies offered a never before seen flexibility to consumers who had previously been able to only hire full-service agents for their real estate needs. Fee for service real estate, for example, might enable you to pay a flat rate for an agent to list your house or to pay an hourly rate for him or her to negotiate your contract.
Agents and Fee for Service
While this pricing structure has some advantages for the agent, who will be paid for his or her services even if your house does not sell, many agents feel by offering fee for service pricing they are losing a significant amount of money they might otherwise make on commission. Other agents, however, see this as a valuable option to add to their traditional full-service real estate offerings. These open-minded agents are granted a competitive edge in today’s market.
How Fee for Service Works
Depending on your agent, you will pay hourly or flat fees for each service you receive. Consider this: If you sell your home in Albuquerque for $200,000, you might traditionally pay a commission of 5 percent or $10,000. Yet if you work sparingly with an agent who offers fee for service, you could save thousands of dollars as a seller. Hiring a fee for service agent for 10 to 15 hours to help you handle the last steps of your home sale, for example, might cost approximately $2,000.
Deciding whether fee for service real estate is right for you is influenced by how much time you have to invest in your home sale. Many people are too busy to sell their homes themselves or simply prefer the help of a professional throughout the process. While you may want to consider full service from a real estate agent, fee for service in Albuquerque may be right for you, particularly if you are a proactive seller.
By Stephanie Allen
A REALTOR® is a real estate professional who is a member of the National Association of REALTORS®