When it comes to selling your home, you might be wondering how you can save on the agent’s commission. If you’re looking for a cheaper way to sell your home, a discount realtor could be the answer. Discount real estate agents are simply real estate agents who work for a discount. Rather than charging the standard seller’s agent commission of 3%, discount realtors work for a lower amount, such as a 2% or 1% commission. Some discount realtors also work for a flat fee rate, regardless of your home’s sales price.
If you’re thinking about selling your home, and want to learn more about discount real estate agents, here’s what you need to know.
How Is A Discount Realtor Different From A Full-Service Realtor?
Unlike years gone by, homeowners today have more options than ever to help them sell their homes. From full-service realtors to real estate marketing sites, to iBuyers. One of the most popular disruptions to the real estate market is discount real estate brokers. Discount brokers differ in how much they charge and what services they provide. Some claim to offer a “full-service,” which includes everything a standard real estate agent would provide. Others simply offer to provide contractural support or marketing or an ala carte service of select options. Regardless of the type of real estate agent you’re planning to work with, you should always ask what is included in their service. Knowing what to expect from your agent upfront will help to avoid any misunderstandings or disappointments.
What Are The Benefits Of Using A Discount Brokerage?
There are several reasons sellers choose to work with a discount real estate agent rather than a full-service real estate agent. Here are the most common:
Sellers Want To Save Money: Naturally, sellers want the maximum return they can get on their home’s sale. Real estate commission is a significant seller’s expense, especially if paid at the typical rate of 3% to both the listing and buyer’s agent. On the standard home price in the U.S. of $266,104, a seller would pay around $7983 in 3% agent commissions. In contrast, a discount agent who charges 1% of the sales price would cost the seller $2661 in commission — a saving of over $5000.
Sellers Want To Handle Their Transaction Themselves: For some sellers, it’s less about the financial aspect and more about having control over their house sale. For instance, a seller may want help marketing their home online but are comfortable showing and negotiating themselves. For sellers who want limited representation, a discount broker can be the perfect answer.
What Is A Disadvantage Of Using A Discount Broker?
Although a discount realtor can make selling your home significantly cheaper, there are some downsides too. Here are some reasons why discount real estate agents won’t work for every seller.
Limited Service: As the old adage goes, you get what you pay for. If you’re looking for a full-service real estate agent to handle your sale from start to finish, it’s unlikely you’ll get that with a discount broker. In order to make their bottom line, discount brokers have to do a higher volume of sales than a traditional broker. This means that they typically have less time available to dedicate to each seller. If you want a real estate agent who’s going to manage your home sale entirely, be sure to communicate that before you hire!
Whether a discount broker will be suitable for you or not depends on your needs as a seller. If you’re looking for a quick sale rather than maximum market value, you might want to consider an iBuyer. iBuyers are real estate companies that purchase homes quickly and in cash. This is ideal for homeowners who wish to sell their house fast, without going through the hassle of putting it on the market.
