Discount Real Estate Broker
Does a discount real estate broker offer inferior service or are the prices just lower? Naturally, a home owner is concerned about sacrificing too much quality while trying to save money. Maybe there are some advantages to seeking a full-service, well-known brokerage but then again--maybe not.
Let's say, for example, that the local real estate market is selling like hotcakes and the homes are new enough that there are fewer deed and easement problems. Then discount real estate brokers might be just as good as those national franchise real estate brokers. The reasons for this are obvious: the house will sell just as well. Also, don't forget that the thousands saved could be used in many very much more satisfying ways.
Does the cheap approach really save money though? A quick look at home prices and simple percentage mathematic calculations will reveal some startling facts. In some parts of the country even a small ranch home could sell for over half a million dollars. With a seller paying 7% of $500,000 the total commission is $35,000. For those brave enough and well versed enough for the For Sale by Owner (FSBO) approach, that's just a great deal of money in the bank. Money saved is truly money earned.
Most of us are faint of heart though. "Is this the best way to sell my house?" asks the average homeowner. Big ticket sales are the stuff that most of us would like professional help with. Here's a simple rule of thumb. Newer homes with fairly recent deed searches conducted may be those with the fewest real estate glitches. But a home with a complicated history could spell the kind of trouble that a seasoned professional may be better equipped to handle.
If the home has been in a family a long time, has had many owners or has an old fashioned meets and bounds deeds--get the best real estate agent possible. Spare no expense. Any property line disputes or inheritance issues need special attention. Of course title insurance covers these things but full service companies deal with these issues more often. They may also provide a home warranty plan which is of great benefit when selling an older home whose mechanicals are in question.
With a new or nearly new home a flat fee listing may offer a huge savings and have no real effect on the marketability of the home. A Multiple Listing Service (MLS) entry will still be included with many of the flat-fee listing services. This is the best tool in home sells. All listings, whether from full service brokerages or discount real estate brokers, appear together in these directories for potential buyers to peruse.
This of course will save almost half of the cost of the full service real estate brokerage. The listing agents half of the commission is the part that yields the savings to the home seller. The selling agent is the one who handles the actual sale the home. At closing, the point at which money actually changes hands; the home may be in the hands of a full service brokerage anyway! Most potential problems are dealt with at this juncture. |