We’re just emerging from a national recession, so the idea of wasting money doesn’t sit well with anyone these days. That’s why it’s not a shock to us when a home seller wants to know if we’re a discount broker and are we willing to reduce our commissions.
It’s sad to admit the results bar for some in the real estate industry is embarrassingly low yet the costs for our services are high. So the attraction of a reduced fee broker isn’t all that hard to understand. Ironically, in virtually all other aspects of our buying or selling experiences, we’ve learned the hard way cheaper isn’t better – it’s really more expensive. Home sellers are re-learning this painful truth every day.
Any home owner who’s ever tried to sell a home “by owner” has learned it’s actually harder than it looks. Hiring a “discount brokerage” to sell your house for a “discount 2% commission” isn’t much of a step up from that. It may seem like a money saver, but it’s really not.
Here are several things to think about if you’re considering hiring a discount real estate broker in Acworth or surrounding areas to sell your home:
- Discount brokerages do next to nothing to help get your home sold beyond giving YOU a sign for YOU to put in your yard and posting the home generically on the internet. And pray someone brings you an offer. After all, they’re discounting their commission; that’s really all they can afford to do.
- Yes, they may tell you they’ll discount their commission to two percent. What these no-service, discount brokers may not be telling you is you’ll also have to pay an additional three percent commission to the Selling Agent (the agent who brings a buyer to you). That’s a total of five percent at least you’ll end up paying – which is pretty close to what we charge our clients to list their homes for FULL SERVICE.
- They don’t aggressively market or advertise your home for you. Your home may be displayed as a postage stamp photo on a franchise web site but that’s about it. Unless you’re willing to pay some other, additional fee.
- They don’t take photos of the home for you so they aren’t giving you help/advice on how to visually market. Unless, of course, you’re willing to pay an additional fee for this service.
- They don’t coordinate any showings for you (other agents will have to ring YOUR phone directly at all hours).
- They don’t tell you how to price your home or even help you understand it’s true value.
- IF you get an offer they won’t negotiate on your behalf. You’ll be fending for yourself against another agent who negotiates dozens of real estate transactions every year.
- If you need some advice on how to get your home sold faster you’ll likely be told to “lower the price.” That’s about it. If you want deeper, market-based thinking – you’ll pay an extra fee for that, too.
- Their business model tacitly discourages other selling agents from bringing their clients to see your house because the discount broker does NONE of the work on the showing or the deal. That means the other agent has to work twice as hard.
- There’s no incentive for them to work hard for you or to get your house sold. Why? Because they discounted their compensation.
- They don’t do any advertising for mobile devices. Did you know that over 72% of home buyers begin their home search from a mobile device?
- In fact, discount brokers don’t do any research-based marketing for your listing. They don’t study who the most likely purchaser of any given home would be, to ensure that their marketing is specifically reaching that audience.
Ask yourself this: if your boss demanded you take a discount off your salary, would you work just as hard (or harder for him)? Would you do extra things for him?
In short, why would someone even pay the so-called “discount broker” a commission at all? You’re practically selling your home by yourself – which you probably already tried. And then you figured you’d still try to save a buck by calling these discount guys.
Remember that agent who sold you the house you’re in now (maybe it was even us)? Remember how hard he or she worked to help you find and buy your home? That agent took care of so many aspects of the transaction and made the whole experience easier for you. That’s because they are a full-service agent, working full-time to get homes sold. Why wouldn’t you hire someone like THAT to sell your home?
If you’re planning on making a move sometime soon we want to hear from you. Drop us a note or call. We’ll take the time to show you how to get top dollar for your home within your time constraints.