What are the advantages and disadvantages of hiring a discount real estate broker?
Some advantages include:
- Lower listing fees
- Full access to basic real estate services
- MLS listings
Meanwhile, drawbacks include:
- Less time/personal attention
- Less flexibility in contracts
- No access to “extra” services
To get a full comparison, visit SOLD.COM today.
There’s more than one way to sell your home.
Historically, many homeowners have chosen to list through a traditional real estate brokerage, and that remains a viable and compelling option today. Others, however, are wary of the high fees that traditional agents charge. They seek something a little more cost-effective.
One good alternative is to hire a discount real estate broker. While this may not be the ideal option for every home seller, it’s certainly an avenue worth exploring. As ever, the best way to make an informed decision about your home sale is to get a free recommendation from Sold.com.
How to Sell Your House with a Discount Broker
We’ll outline some of the top pros and cons of working with a discount broker, but first it’s important to understand the basics. In most regards, discount brokers work just the same as traditional real estate agents. The big difference is that they charge lower fees, and as a result have to work on volume.
In other words, your discount broker will likely be working with many clients at once—so you may get a little less personal attention than what you’d expect from a “regular” agent. But, the savings may be worth it to you!
The Advantages of Selling Your House with a Discount Broker
When you sell your home with a discount broker, you can expect a few advantages:
- You’ll get lower listing fees. While traditional brokers often charge at least 3 percent, discount brokers may charge as little as 1 percent.
- You’ll get the same basic services as you would with a traditional agent—including guidance with pricing, some basic advertising services, etc.
- Working with a discount broker will also allow you to list your home on the MLS.
The Drawbacks to Selling Your House with a Discount Broker
Those advantages are significant, yet there are also some important disadvantages to mention.
- Traditional agents may offer some “extra” services—like staging, photography, and detailed property listings—that a discount agent simply can’t provide.
- Discount agents have to juggle a lot of clients at once, so they may not be as accessible to provide you with one-on-one insight and advice.
- Traditional agents can create custom contracts to help meet sellers where they are, allowing for some potential flexibility on things like commissions, marketing expectations, etc. Generally, discount brokers don’t have that luxury.
Questions to Ask A Potential Discount Real Estate Broker?
- What experience do you have selling in my local area?
The housing market is different depending on your location. You want to find an agent who not only has experience selling homes like yours, but knows the local market well. This will ensure you get the most money for your home.
- What services do you specifically offer?
Because of the reduced fees, not all services you might expect from a traditional agent are included. Make sure you know what services are priorities for you in your selling process, and ensure they align with what your specific broker is offering.
- How will you determine the value of my home relative to our local market?
Any real estate personnel will be able to give you insights into the market and how your home fits into the market. They will be able to help you competitively price and list your home to get the best offers. Make sure to clarify with your broker so that you can be confident in the selling process.
- How much commission do you charge, and what other fees will I be responsible for?
Since finances are a motivating factor in choosing a discount broker over a traditional agent, make sure that you are familiar with the pricing structure of your broker. Compare the total fees that your broker requires you to pay to the commission for traditional real estate agents, and make sure you’re making an informed decision.
Should You Work with a Discount Real Estate Broker to Sell Your Home?
There’s no easy answer here. Some sellers will be delighted by the affordable services they receive from a discount broker. Others may wish they had gone all the way and hired a more traditional real estate firm.
You can get a more individualized recommendation from Sold.com to help you make an informed decision about how to sell your home. We’ll help sift through your options, weigh pros and cons, and connect you with service providers, realtors, and brokers in your area.
All you have to do is take a minute to answer a few basic questions for us.
Learn more by generating your free SOLD.COM report today!