Post by asadul7171 on Feb 14, 2024 3:11:58 GMT -7
The real estate market around the world is today overcrowded with small agencies or independent agents who have chosen to turn to the home office modality; abandoning the old stuffy methodologies that have characterized real estate so much over decades; and that they already suffered a first knock-out impact with the bursting of the American real estate bubble. For at least five years now, digital strategies have been outperforming conventional sales methods. If you are a real estate agent whose service office operates autonomously, have you ever felt attracted to kicking the board and abandoning profitability dependent exclusively on commissions for errands? This is where we find a modality that is gaining ground in an unthinkable way for conventional real estate advisors: the flat rate real estate model. But... How does this business plan work punctually? We will tell you about it in this article, in addition to reviewing its advantages and points to review. Pros and cons of real estate flat rate The flat rate real estate model is an alternative way to manage the profitability of a real estate service office. Coming from North America (as always standing out in trends and forms of real estate) it is a modality also known as “flat flee” and that focuses its methodology on locating a fixed price or rate that replaces the usual commission.
How much is your work worth? In a store that sells x items, each one will have its price and you can consult it beforehand and define which one you will take home. In the case of agencies, the item is the real estate that will have a market value; and which may be higher or lower depending on a series of variables. But the real estate agent or agency does not Slovakia Email List sell an item, but rather sells its services. In this sense... Can a service have a previously set value? The real estate flat rate modality proposes yes. Goodbye to percentages If you want to incorporate the flat rate into your real estate services office, you must first of all forget about percentage calculations. In this modality, each negotiation or transaction will be charged at a stipulated value (which you will arrive at after carrying out an exhaustive field study about the regional market and never before). However, in this business model already proven by hundreds of real estate agencies and advisors around the world, there are (after all, as in all models) a series of considerations that will encourage you to incorporate it on the one hand and think twice in applying it for another.
Let's see what those pros and cons of the real estate flat rate are; and how the specialty you dedicate yourself to or the branch of real estate in which you work on a daily basis can influence its application. Advantages The fact that a real estate stock x has a previous price will guarantee stable income and a considerable volume if your business model moves within a certain standard and does not intend to go beyond. For example: rental or sale of apartments in central areas; or student rental management in areas surrounding certain educational centers. Since negotiations always revolve around very similar parameters, you will be able to stipulate in advance and comprehensively how much a transaction will require, whatever it may be; and the size of the apartment or the area will have little impact on the negotiation. Disadvantages On the other hand, if we look at the factors that can maximize the risks of applying the real estate flat rate, we will see that if you specialize in other types of transactions it may not be as profitable as it promises from theory. For example, if your service office is dedicated to the purchase and sale of luxury properties.
How much is your work worth? In a store that sells x items, each one will have its price and you can consult it beforehand and define which one you will take home. In the case of agencies, the item is the real estate that will have a market value; and which may be higher or lower depending on a series of variables. But the real estate agent or agency does not Slovakia Email List sell an item, but rather sells its services. In this sense... Can a service have a previously set value? The real estate flat rate modality proposes yes. Goodbye to percentages If you want to incorporate the flat rate into your real estate services office, you must first of all forget about percentage calculations. In this modality, each negotiation or transaction will be charged at a stipulated value (which you will arrive at after carrying out an exhaustive field study about the regional market and never before). However, in this business model already proven by hundreds of real estate agencies and advisors around the world, there are (after all, as in all models) a series of considerations that will encourage you to incorporate it on the one hand and think twice in applying it for another.
Let's see what those pros and cons of the real estate flat rate are; and how the specialty you dedicate yourself to or the branch of real estate in which you work on a daily basis can influence its application. Advantages The fact that a real estate stock x has a previous price will guarantee stable income and a considerable volume if your business model moves within a certain standard and does not intend to go beyond. For example: rental or sale of apartments in central areas; or student rental management in areas surrounding certain educational centers. Since negotiations always revolve around very similar parameters, you will be able to stipulate in advance and comprehensively how much a transaction will require, whatever it may be; and the size of the apartment or the area will have little impact on the negotiation. Disadvantages On the other hand, if we look at the factors that can maximize the risks of applying the real estate flat rate, we will see that if you specialize in other types of transactions it may not be as profitable as it promises from theory. For example, if your service office is dedicated to the purchase and sale of luxury properties.