Unlike other firms that charge you a percentage of the sale price for buyer representation, Flat Fee charges $3,500 for our buyer representation services regardless of the price of the home.
As of July 15, 2024, the Vermont based MLS changed its rules. Home listings in Vermont can no longer offer buyer agents compensation from the seller or listing agent in the listing. The new rules further require that prior to a buyer seeing a home with an agent, the buyer must sign an agency agreement with firm and promise to pay the buyer agent's fee in that agreement.
The big change is that buyers are now truly free to negotiate the agent fees without worrying that a fee has already been established in the MLS. It is more important than ever for buyers to find an agent that can provide the services they require at the best price that meets their needs.
At Flat Fee we believe we provide those services at the best value in the State of Vermont.
As a result of the rule changes, buyer agents like Flat Fee are now free to request any compensation from the seller that our clients wish. While we work for $3,500 that does not prevent us from asking for additional credits for our clients. Instead of our agents getting paid a percentage of the home price, our agents collect $3,500 at closing. However, if the seller is offering more than $3,500 to buyer agents, we can have the excess amount credited towards your purchase price.
For instance, if you are purchasing a home for $350,000 and the seller is offering a 2% buyer agent fee. We can get you a credit of $3,500 towards your closing costs and/or the purchase price. Therefore, by using Flat Fee instead of a traditional percentage based agent, you as a buyer increase your purchasing power and save money.
A few things buyers should be aware of when entering into an agreement with an agent:
There is no legal requirement to hire a real estate agent in the search for a home in Vermont. In fact, buyers have the right to refuse to be represented by an agent.
• While buyers are not required to hire an agent, many do to help with the process. Agents can be very useful in guiding a buyer and helping to avoid the pitfalls in the process.
• If you are going to hire an agent, you should first determine what they are going to charge you. If they tell you that you will not need to pay because the seller will pay their fee, then that agent is in breach of a legal settlement made by the National Association of Realtors and is subject to reporting to the Department of Justice for that violation.
• Because of the new MLS rules, if you want to see a home listed by an agent, you will first need to enter into an agency agreement before you can see a home. Be aware that these agreements are legal contracts so it is important to question the agent about what the obligations will be if you sign an agreement.
• You should ask the agent what fees will be owed by you before you enter into any agreement. Again an agent can no longer promise you that the seller or listing agent will pay their fee so you should ask them to clarify how much you will be required to pay should a seller refuse to pay the buyer agent fee.
• You should ask the agent how long you are obligated to utilize their services. For instance, what if you find a firm that charges better fees and you wish to change firms, can you?
• The key to finding a good agent is finding an agent who is transparent. An agent should be able to tell you what they charge up front. An agent should be honest and tell you that you will be responsible to pay their fee. The agent should demonstrate that they will put your financial interests before their own so that you know you are getting the home for the best purchase price for you and not the best for the agent and their commission.
