If you are thinking that all the real estate agents charge the same price which remains to be in the bracket of 5 to 6% real estate commission, then it is not so. So, when you are planning to hire someone to sell your house, then it is essential to know your options. All the real estate agents do not work in the same manner.
In this competitive real estate world, the homeowners who are aware of the proper marketing methods and how to steer the home sale, can handle the entire process on their own and skip hiring the realtor. While some sellers prefer to hire a discount or low commission rate broker to manage their home sales. They offer an economical business model where they help you market your home. They may not be able to offer the highest level of services like a traditional real estate agent, but they are certainly worth it.
So, if you want your house to sell fast and do not want to pay a high commission, then consider hiring a low-commission realtor. Let us discuss everything you need to know about discount or low commission agents, their vast services, the benefits of hiring them, and the drawbacks.
What are low commission agents?
Compared to the full-service agents, the discount agents are the cheap option. They charge only 1% to 2% commission unlike the 3% that a traditional seller agent. They do most of the work on your behalf, though may not provide full service. A discount broker is a better option than a full-service broker for you if you are willing to do some work on your own.
To find one, search for “discount realtors near me”.
Benefits of hiring a discount real estate agent
The main benefit of hiring a discount real estate agent is obviously to pay lesser money. Usually, the seller pays the buyer’s agent’s commission which is 2.5% or 3% of the price of the home along with the seller’s agent’s commission which is also 2.5% or 3% of the price of the home. The low-commission agent usually charges around 1 to 2% which lets you save a handsome amount of money. You can use the saving to buy new fixtures and furniture for your home.
So, rather than spending a magnanimous amount on the real estate agent fee, pay lesser money to the discount agent and enjoy a lucrative transaction. This low-rate real estate agent may have fewer years in the business compared to the expensive agents, but they will help you sell a house quickly and without any hassle.
The drawbacks of the discount real estate agents
The main problem with using a discount real estate agent is that they deal in volume. These discount agents may be a little less responsive as they work with a pool of other buyers and sellers. You may expect a little slower email response from them and you will have to wait for some time to speak to them.
Also, the discount real estate agents may be lesser experienced. There are many experienced discount real estate agents too. It is also said that people are always doubtful about the discount agents because they are unable to compete with the full-service agents on the range of services they offer, negotiation skills they have, and many other critical parts of the home-buying as well as the home sale process. However, if you pick the right discount real estate broker, then you may get satisfactory services and sell a house quickly.
How to find the right discount broker?
At the time of choosing the agent which can be a discount agent or a full-commission agent, you need to first ask yourself what are you expecting from the agent. If you want a premium treatment and a high level of responsiveness, then it is better for 3you to go ahead with the traditional realtor. However, if you are fine to do a part of the home selling job on your own and just need a little support, then the discount real estate agent is the best choice for you.
After this discussion with yourself, if you feel that you may not need much attention and you can go ahead with the discount real estate agent in your area, then be informed of the following:
- Look for the reviews of the discount agent you are considering hiring. Find an agent that has mostly positive reviews.
- Make a list of the questions you want to ask your agent at the time of interviewing. If the discount real estate agent answers the way you expected, you can pick the person and go ahead.
- At the time of evaluating the agents, talk about everything you want them to do. You can ask them to brief you on the process of conducting the home sale, how they help you with arranging the paperwork, etc.
- At the same time, you can also narrate your requirement to the real estate agent too. tell them about what type of house you have, what is the price you want to get, the best parts of the home, and the repairs suggested.
- Ask your broker that they charge less, so how are the trade-offs?
You require a person whom you can trust and who makes you comfortable in the entire home sale journey. If you feel that they are not able to provide a proper or straight answer, then evaluate other options. Historically, most homeowners chose to list through a conventional real estate company. But due to the high fees of the traditional agents, the sellers are looking for a more cost-effective option. Hiring a low-rate agent is a great alternative. This may not be the best option for some home sellers, but it is certainly one of the best options to explore.
Though discount brokers work like traditional real estate agents, they have to cater to more sellers and buyers. Since the discount broker works with many clients, complete personal attention is not guaranteed. But they charge a low listing fee and offer the basic services that a traditional agent would provide such as assistance in pricing, marketing services, negotiation, etc. Also, working with a discount broker means that you can list your home on the MLS at a lesser price.
As we outlined some of the top benefits and drawbacks of working with a low commission realtor, you can take the call for your home sale.