Throughout the country, the term “Discount Real Estate Brokers” is quickly becoming the one of the most talked about subjects in the real estate industry.
Many home sellers are learning they no longer have to pay the high cost of a 6% listing commission. This upcoming and rapidly growing trend has created multiple low cost listing programs, along with more and more discount real estate brokers who are offering to save you money on the sale of your property. New companies and multiple websites are cropping up all over the country simply because flat fee listings or discounted commissions are now being demanded by property owners who wish to successfully list and sell their home and save money to boot.
Before you choose a discount real estate broker; it is important to understand not all are the same. There are at minimum two major differences between a flat fee listing or so called commission free listing. One is whether they provide full or limited service; and the other is whether they are companies with licensed brokers or are they staffed by hourly employees.
Unfortunately many home sellers are learning, you simply don’t get much more than what you pay for. Too often if you are paying a discounted listing fee you may also be getting less than what you deserve by those companies who only give you limited service and may also only have unlicensed employees tending to most of the details. It is important for you as a home seller to fully understand the difference between “discount real estate brokers”.
Many realtors who promote themselves in this way; fit a profile commonly associated with less than full real estate services. They usually solicit your listing for a very low fee that is paid upfront online before you ever meet anyone face to face if ever at all. This type of flat fee MLS listing only covers very little of the traditional realtor services. In general you are basically paying for someone to post your home for sale in your local MLS and will be on your own when handling all the other tasks required to protect your interest during the multi-level process of selling a home.
You may realize although $300-$500 flat rate listing fee appears to save you money; you end up feeling overcharged when the listing expires and your home has not sold. All realtors are regulated by a board of realtors in their specific area and pay yearly dues that cover being able to post listings on the local MLS. It doesn’t cost them an extra dime for their listings to post in the national MLS platforms; like Realtor.com, Trulia and Zillow. Listings are automatically fed to the national internet platforms within 24 hours of the agent submitting it to their local MLS. These large internet or locally based companies may even go as far as to provide you with a sign and a lock box; but for the most part your small fee covers only this minimal amount of service. In the long run even a little more than a few hundred dollars may appear to be costly when you realize it really takes full service and not just an MLS listing to successfully sell your home.
For instance the viewing of your home needs to be handled by a reputable company with a professional scheduling service so anyone desiring to get into your home is not only monitored to assure a safe showing of your property, but there follow up for necessary feedback. You may have to do the screening work yourself as well as handle all the tough negotiations, proper legal paper work and more.
These are just some of the very things that can be a bit at best tricky for someone with no home selling experience and would require more personal attention by a seasoned licensed broker. There are many reasons you want a real estate professional providing full service for a low flat fee; unless you are a seasoned For Sale by Owner (FSBO); it is strongly suggested you stay away from discount real estate brokers offering a limited service that pretty much places you in that same position.
In some states flat rate MLS listings with limited service is prohibited by law. In Colorado when a real estate broker enters into a listing transaction with a seller; they must provide full service. Despite this regulation there are brokers doing business in this manner. You might have to ask yourself why you would want to entrust your hard earned equity to someone who is not willing to follow the regulations of the very license they hold?
There are lots of what appears to be great deals in terms of what you are asked to pay to sell your home; but paying less does not necessarily guarantee you keep more of your equity or never mind reach your goal of a successful sale.
Then there are those licensed professional realtors with years of experience who also promote themselves as discount real estate brokers; because they willing to take less so you can keep more. They too offer a flat fee listing; yet there is nothing discounted when it comes to the full traditional real estate services they provide. They understand you do not have to compromise by giving up the kind of real estate service you truly need just to save a buck.
These discount real estate agents are educating the public about how and why flat fee listing fees and rates originated; and how you can save thousands and still get full services. They offer to do all the work for less money simply because they know their work load has diminished due to modern day technology. Technology saves them a ton of work related costs and are willing to pass that savings onto you.
Flat fee or flat rate listings, discount real estate agents are a direct result of this convenience providing technology that has revolutionized how everyone can sell or even buy a home. Sellers, buyers and especially real estate agents have benefitted from modern technology that combines the availability of multiple digital devices and platforms to quickly access the internet and those they are doing business with, making connecting and communication faster and easier than it was in the past.
Real estate agents simply no longer have to invest the same amount of time as they had to in the past to sell a home. What use to take an agent days to accomplish; like hand delivering offers and communicating counter offer negotiations use to involve weeks; not to mention the hard costs before a meeting of the minds was achieved in order place a home under contract. This type of activity is now accomplished in hours or days without anyone having to leave the comfort of their home.