Discount Real Estate Broker
Discount Real Estate brokers is it true “you get what you pay for”
In the world of discount real estate many brokers say “you get what you pay for” meaning that if a broker charges less he will give you less service. This is not true. In this article I will be discussing discount real estate brokers who are members of the realtors local multiple listing service and provide full service at a discount rate. I will not be talking about brokers who assisted buyers or sellers in selling or buying a home where full service is not offered.
Full service agents who complain that you get what you pay for in a discount real estate broker are a little emotional about this subject and I think are more concerned that the competition of discount agents may be taking away from their bottom line. If the sale is not a perfect win win situation where the seller and the buyer get an even deal than either the buyer gets a better buy or the seller gets a better deal. Are Real Estate agents who claim that they get sellers 10% more money because of their marketing expertise than taking advantage of buyers who will be paying 10% more than the house is worth. Why would a buyer want to work with a broker who claims that his listings sell for 10% more than the average listings? Both discount and full service brokers adhere to the same realtors code of ethics and if this is the case than a broker who is charging less still has an obligation to a seller or buyer no different than a real estate agent who charges a customary fee and the sales outcome should be based on the individual brokers expertise and the current real estate market not whether or not a discounted commission is being charged. Most discount real estate agents place their listings in the multiple listing services and pay the selling agent the customary selling fee so the selling agent will make just as much commission on a discounted brokers listing as any other realtor’s listing. The discount agent just takes less for the listing fee. The customary listing fee is between 2.5% to 3% and the discount broker may charge 1 to 1.5% listing fee saving the seller on a $600,000 sales price, for example, between $6,000 and $9,000.00 dollars. In many cases the reduced commission that is charged by a discount broker may equal out to being the same as a agent who is charging a customary fee but then has to split that fee with his broker.
The buyer’s concerns are that a broker is representing them to the fullest and they are getting the best possible buy on their home and the sellers main concern are that their home is being fully marketed and advertised and that they are getting market value for the home
In summary then it is not “you get what you pay for”, but what is the expertise of the agent or broker that you hire to represent you in a real estate transaction. If you hire an ethical discount agent then what you get is professional full service at a savings.