Discount Real estate Agents and Budget Purchases
Why are real estate agent commission so high?
November 10, 2017
Real estate somehow always seems like a place where investments tend to fizzle out into meager earnings or are converted into commissions for over-charging brokerages.
So, where is it that a seller could get some reasonable discount?
Home sellers in most real estate markets around the country face the prospect of selling their property for less than they had hoped for making substantially less profit.
Thus even with the best of sale price and the best of situations, many sellers tend to cringe at the fact of losing out on the money on service realtor commissions. Real estate commissions vary, but generally, they run up to about 6% of the sales price, or about $18,000 for a $300,000 home.
That said, several real estate brokerages, hope to capitalize on the growing realization among consumers that even real estate commissions are negotiable. This, in turn, has created a separate market niche for the brokers that promise to save sellers money and rebate commissions to buyers.
That is completely understandable since the underlying tenet is that all real estate commissions are negotiable. The extra effect is just the cream and the usual brouhaha amid the services around real estate brokering.
This brings a separate market niche into play where discount brokers cut down on the conventional methodology of pitching real estate services and reduce the asking commission rates. Homeowners have three options when it comes to selling their home:
Out of these, only the discount real estate agent formulates a correct standard of curated Co-op commissions.
Tips for Choosing a Discount Broker
Pick three real estate agents, including one traditional and two discount brokers. This’d help you compare their fees and services.
Ask about the commission split. If you prefer a traditional agent, it may be possible to negotiate a reduced commission with that agent. If you aren’t able to get the splits assessment, then you might as well go with the discount brokerage.
Ask how your home will be marketed. Advertising seems well but as a seller, you might want to pick from a select smorgasbord of people. A Multiple Listing Service (MLS) could possibly do you well.
Ask what your responsibilities will be and what exactly the real estate agent will do, particularly when it comes to showing the house and screening buyers.
Find out how much experience and local market knowledge the agent has. Post-2008, you’d want your property to be appropriately priced.
Why should you pick a reduced service?
Well, saving money seems to be a great motivator for both sellers and buyers. The main question around hiring a discount broker is: Why would you want to pay extra money for real estate services? You could get a better price and competitive real estate services through a discount brokerage firm online. Another reason is – you won’t get the usual talk about receiving realty service. Making sure that you have an educated idea of your property and a trustworthy guidance about the price and condition of your home would help you ascertain the right price for your property.
