Discount Real Estate Brokers | Hidden Facts
For many, there has always been an enigma surrounding discount real estate brokers given a lack of understanding as to how these brokers can offer lower fees, while others are insistent on receiving a 6 percent commission. But this post on discount real estate brokers should help you understand the dynamics better.
There are Different Type of Discount Real Estate Brokers
There are both low commission and flat fee real estate brokers.
Not every discount real estate broker offers a low commission structure, some ask only a flat fee, with prices as low as $99. But in the case of flat fee MLS companies, you need to pay the cost upfront, whereas discount brokers only ask the fee after selling your home.
Flat fee MLS companies can keep their fees extremely low because they require the seller to take some of the financial burdens of selling the home. For example, you’ll either be required to provide your professional photographs or have them taken by the flat fee broker at an additional cost.
Discount real estate brokers don’t do this. They provide full-service options and charge only one to two percent. While that may seem like a saving initially, if your home sells for more than $50,000, a flat fee MLS will always be the better option.
They Offer Buyer Rebates
Not only do sellers save by using Discount Real Estate Brokers, but buyers do too. When buyers buy directly through either a discount real estate broker or a flat fee broker, buyers can receive the amount allocated to buyer agent commission after they have purchased the home. This means that it pays buyers to seek out homes listed on discount and flat fee brokerages as they can receive between 2% and 3% of the home’s value back in cash.
Many Older Discount Real Estate Brokers Use Outdated Tools
Although the discount real estate brokerage industry is being reinvented by companies like Houzeo and Beycome, many sellers will encounter outdated options and have to search for up-to-date companies. But when you do have a digital option, you gain access to the best features.
When it comes to nationwide coverage, very few flat fees For Sale by owner websites brokerages are as good as Houzeo or FSBO.com The former has streamlined selling a house for sale by owner, giving you all the tools you need to sell all from your Houzeo dashboard. While the latter has adapted to the housing market and the digital landscape quickly, maintaining its value to sellers, despite being in business for over 20 years.
They Can Be The Best Real Estate Agents You Have Dealt With
Most sellers choose full-service real estate brokers because they believe they will be the best real estate agents. This is often not the case. Many discount real estate brokers are more attentive and invested in the process because they rely on their reputation to maintain the discounted rate. But there’s another reason they are the best real estate agents: they acknowledge that many of the services full-service real estate agents offer can be offered for far less and provide just as much value. Because the objective of their business is about helping the seller make savings and not massive profits, they are more sincere in their interaction.
Not all discount real estate brokers are the same. Yes, they offer many of the same services, but your experience will differ from broker to broker. For that reason, you should be searching for industry-leading and reputable companies that are committed to digitizing the industry and providing even more value and convenience to sellers. These are the best real estate agents.