Colibri Real Estate 30-Hour Alabama Post License Practice Exam

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Boost your real estate career in Alabama with the Colibri Real Estate 30-Hour Post License Exam. Prepare thoroughly with simulated quizzes, including multiple choice questions and detailed insights to ace the test and advance your professional journey.

Practice this question and more.

What type of brokers are compensated based on the sale price, with the agent receiving an agreed-upon fixed price when the property is sold?

Flat Fee Service Brokers
Commission-Based Brokers
Luxury Market Brokers
Discount Brokerage Firms

The correct answer is: Flat Fee Service Brokers

Flat Fee Service Brokers are designed to provide specific real estate services for a predetermined flat fee rather than a commission based on the sale price of a property. This means that when a property is sold, the agents involved are compensated with a fixed amount agreed upon in advance. This structure can often be more appealing to sellers who want to manage costs while still receiving essential services throughout the selling process. The advantage of this compensation model includes clarity and predictability in financial planning for both the seller and the broker. Sellers know exactly what they will pay, regardless of how much the property ultimately sells for, which can motivate agents to provide efficient service without being solely focused on maximizing the sale price to increase their commission.