Selling a home means spending money. You'll have the expense of minor repairs and touch-ups to put your home in prime showing condition, plus legal expenses for the transfer of ownership, plus commissions to the agent or agents who assist you in finding a buyer.

 

Until now, Panama home sellers have only had two choices with regard to commissions:

 

• Try to sell the house without an agent
• Pay a 5% commission on the final selling price

 

 

To understand why Flat Fee Realty represents such a huge benefit to your bank account, you need to understand what has been standard practice when selling a home in the Republic of Panama.

 

First note that some agents will tell you that a 5% commission is "standard" and if you want to hire an agent you have no choice but to pay it - but that is not the truth.

 

Real estate commissions are legally negotiable. No legislative entity or real estate board dictates the commission. Each agency sets their own commission rates - most simply choose to follow the accepted 5% because sellers have become accustomed to paying it.

 

But does that make sense? We don't think so.

 

Since so many dollars are involved, it is only sensible to shop around before you list your home with a broker. You'd shop for any other large expenditure, and there's no reason to be shy about shopping for this one.

 

Here's what usually happens when a homeowner decides to sell:

 

• The seller contacts a real estate agent (agent A) to represent him and to find a buyer for his/her home.
• The seller sets the price, knowing that the agent's commission will be deducted from his or her proceeds. The seller will agree to a percentage commission, but commonly will be advised that 5% is the commission charged, and will not be told that he or she has a choice.
• When the house sells, the commission, along with other selling expenses, will come off the top before the seller receives his or her proceeds.
• If agent A finds the buyer, that lucky agent A will receive a commission equal to 5% of the final negotiated selling price.
• If a real estate agent from another office (agent B) finds the buyer, Agents A and B will spilt the 5% commission. Each will get 2.5% of the final negotiated selling price.

 

As noted above, the commission is traditionally included in a home’s price, so a buyer who pays $400,000 yields the seller $380,000, less the other fees. $20,000 goes directly to the real estate agent. After deducting other fees, the seller will realize something in the neighborhood of $374,000.

 

This amount may seem small in comparison to the overall value of the home, but it is often large in comparison to the amount the home has appreciated since its last sale.

 

And think about this: Because the commission is included in the price, the buyer is the one really paying for the real estate agent commission. The commissions come out of the money the buyer provides. Whether you buy property in Panama, or anywhere else in the world, if the seller pays a real estate agent, the buyer is providing the money to do so.

 

That's why buyers who deal with individuals trying to sell their homes without an agent always expect to pay a lower price.

 

And that's why Flat Fee Realty sellers can offer their homes to you at a more competitive price. Instead of a commission amounting to many thousands of dollars, Flat Fee Realty sellers pay a low flat fee - predetermined at the time of listing, so there are no surprises.

 

Flat Fee Realty is leading the way to a new era of Panama real estate practice - an era in which agents are paid fairly for actual work performed, and buyers and sellers save thousands of dollars.

 

In fact, when you sell your home through Flat Fee Realty, you'll pay up to 70% less than you would pay a traditional percentage-based agency.

 

 

 

 

 

Plus, when you use Flat Fee Realty to represent you in the purchase of a home listed elsewhere, you'll receive a rebate of 50% of the commission we receive.

 

Of course, commission costs are only part of the whole picture. You also want full service - and that's what you'll get at Flat Fee Realty.