Using A Discount Real Estate Broker
Homeowners have traditionally used traditional real estate brokers to sell or buy homes. The average commission paid by these brokers is 6%. When you add in all the costs associated with selling a house, it can cost upwards of $15,000 or more.
So it’s not surprising that there have been a lot of discount real estate agents in recent years. In exchange for more basic services, these brokers may charge lower commissions or fees.
While there are pros and cons to both traditional and discount real estate brokers, homeowners who plan to sell their homes should investigate the benefits of using a discount broker.
Continue reading to learn the main benefits of discount real estate brokers.
What Is A Discount Broker In Real Estate?
Many people aren’t familiar with the workings of real estate commissions. Although it might seem scary, a discount broker does not necessarily mean they offer low-quality services. The broker is charging less, not that they are “discount.”
There are two types of real estate brokers: flat-fee or commission discount. Flat-fee agents charge a flat fee to list a property. Sometimes, these brokers only do the job of listing the home. Flat-fee brokers may offer full-service services in other cases. It all depends on the broker.
A discount real estate broker will charge a lower percentage-based fee than the standard 6%. Some brokers charge as low as 1% commission.
There are many services that a discount broker can offer. They may differ from brokerage to brokerage. The minimum service a broker offers is to list your house on the MLS. However, most brokers offer basic services such as online marketing and open houses.
What Are The Advantages Of Using A Discount Real Estate Broker?
Save Money
The best thing about working with discount brokers in real estate is the ability to save money. You can reduce the cost to sell a house by using discount broker services, regardless of whether the flat fee is lower or the commission percentage rate.
A $250,000 home would be subject to a 6% commission. The average commission is $15,000. A discount broker would charge $7,500 for a commission percentage of 3%. Keep in mind that the buyer’s representative will also need a commission. This can lead to significant discounts.
For houses below a specified value, discount brokers may also charge a flat fee. It doesn’t matter if the flat fee is $3,000, $4,000 or whatever it may be. This is still a significant difference from traditional brokerage fees.
Motivated Agent
Brokers who specialize in discount real estate tend to process sales faster than traditional brokers, which helps them make up for their lower fees. Agents with discount brokerages are motivated to aggressively price and market their homes. This can be a critical factor in finding a realtor for some home sellers.
Process Streamlining
The streamlined process is one of the many benefits of working with a discount broker. The traditional process of selling a house takes many weeks and can require a lot of work.
These discount brokers are more focused on selling properties quickly and efficiently than on offering a full range of luxury services. They tend to be more efficient and more cost-effective.
Because of their low fees, discount brokers are motivated to work efficiently and eliminate all unnecessary steps from the sales process. Brokers save their clients’ money by removing all tracers and expediting the sale.
Are Discount Real Estate Brokers Better Than Traditional Brokers?
Every market and home is unique. Without taking your circumstances and needs into consideration, it’s impossible to determine if a discount broker is better for you.
However, it is important to keep in mind that discount brokers offer many advantages over traditional brokers. A discount broker will save you money and make it easier to sell your property faster.
If you are looking to save money on commissions, sell quickly and enjoy the benefits of a simplified process. Consider using a discount broker.
