Do you like to save money? Most do. Saving money is smart. That’s why people like you who are looking into selling their home look for ways to save on real estate commissions as much as possible. After all, having a realtor who is paid by commission means as much as 6% of your income from the sale of the home is gone.
When searching for ways to save, you have probably come across the term “discount real estate broker.” So, what is a discount real estate broker? They naturally offer you a discount, but what’s the catch?
What is a discount real estate broker?
Discount real estate brokers are either discount brokerages focusing in discount services only, or name brand brokerages (such as Keller Williams, Century 21, John L. Scott) or purely who also work on an a la carte basis for a flat fee. There are two types of discount real estate brokers: a la carte brokers and full-service agents.
A la carte brokers usually only list your home on the market or provide a few other services such as a few fliers or some online marketing. They typically charge a tiered flat rate depending on what services you would like.
When sellers want to save money but still want their home seen online, they’ll typically go to a listing service. A listing service is a discount real estate brokerage that has sellers pay a flat fee (not the sizeable commission rate) in exchange for some of the benefits that full-service real estate brokers provide, such as listing the home on the MLS.
Full service agents (usually name-brand agents) provide all the services you would receive from using a regular real estate broker , but for a fraction of the price.
What’s the difference between a discount real estate broker and a full-service real estate broker?
Your typical discount real estate broker primarily offers to list your home on the MLS. Some may have options for a higher price point that include flyers, mailers, or some online marketing. When using a discount real estate broker, you would generally be responsible for scheduling open houses, posting signs, advertising, negotiating price, and seeing the sale from listing to escrow.
A full-service real estate broker is responsible for listing your home online and ensures the listing is as accurate as possible to attract buyers. They also include services like printing out fliers, scheduling and holding open houses, answering any questions you may have, as well as handling any paperwork along the way. While full service brokers typically charge a commission rate , some charge a flat rate for each listing .
How much do discount real estate brokers cost?
While the cost varies from service to service, they usually charge between $3000 and $5000 per home or 1% for more expensive listings. While this seems like a steal of a deal compared to the traditional 6% commission rate , keep in mind that not all discount real estate brokers have your best interests at heart. It is essential to do your research before listing with any broker. Even the discounted price might be too much for the services rendered by some discount brokerages.
What to look for in a discount real estate broker
Your real estate broker will define the experience you have as a home seller. As you talk to others who have sold, you may hear stories about fantastic selling experiences, as well as some not-so-great-ones. Before you decide which agent to go with, here are few things you’ll want to keep in mind when making your list.
Full Service Agents
When talking to other realtors about discount agents, you’ll often hear the phrase “you get what you pay for.” While that may be true for most discount real estate brokerages, full service agents are the exception. If you want all the perks for a fra ction of the price, make sure you find a full service discount broker. They will not only make sure relevant audiences see your home; they will be there to walk you through each step of the process –even doing a lot of the steps for you! With an a la carte service, you are left pretty much on your own to figure everything out.
As you search for a real estate broker, it’s essential to check their reviews. Pay particular attention to the quality of customer service, the services they provide, and how many reviews they have. The more stars they have, the better! You can find these reviews on the brokerage’s website, on Google, Yelp, or even Trustpilot.
Some discount brokers offer their low prices because they are just starting out. While it’s nice to give someone their first break, some listings require more experienced brokers. Make sure you are aware of any experience they have and be prepared for their services and knowledge to reflect that.
As you look into working with a discount real estate broker, you will probably run across several with company names you don’t recognize. Make sure you identify the realtors who work for well-known real estate brokerages, like Century 21 or Keller Williams. Working with a name brand agent helps to conceal the fact that you are working with a discount broker, something the buyer’s agent might use to negotiate the price. Using a name brand discount broker also gives you access to perks that certain brokerages have, such as building a website for your home.
Selling your home can be a painful, costly process, but it doesn’t have to be– and a lot of it comes down to which real estate broker you use. The real estate broker you use will define the experience you have while selling your home. Using the right discount real estate broker will help your experience be a phenomenal one both for yourself as well as your wallet. Remember to find a name brand, full service brokerage that has plenty of reviews and expertise. You want to save money, not spend money on a service that isn’t worth the cost.
If you’re looking for a local, full-service agent from a major brand that will list your home for an affordable flat fee, Clever can help. Call us at Call 1-833-2-CLEVER or complete our online form to get connected a top-rated local agent that will list your home with a discounted commission rate.