Real Estate Commissions continue to be the subject of heated debate and investigation. With good reason. Although the cost of selling a home has edged downwards in recent years and consumers of real estate services have a variety of options to choose from when selecting brokerage services, the challenges involved in successfully selling a home have never been greater.
Several years ago when home owners who wanted to sell a home could literally stand outside their homes with a sign, if they lived in highly desirable communities, and attract a couple offers, it was a natural reaction for home owners to wonder if they needed the services of an agent.
I remember actually writing up an offer for a home that had literally had the real estate sign in the yard less than 30 minutes. That home was sold in hours. During this heyday, one of my listings was sold within 14 hours by a “pushy” agent who literally stuck her foot in the door and demanded that the owner let her see the home so she could write an offer. Can you imagine that today?
Today, you might still wonder if you should utilize the services of a discount broker, albeit for different reasons. You may be wondering IF it is possible to sell your home at all. The question foremost in your mind is if you have enough MONEY to AFFORD to pay a real estate commission of if paying the commission will necessitate dipping into your retirement funds.
That’s the primary reason, individuals might choose a Discount Broker…Affordability.
The Second is: NOT NEEDING TO SELL. While, placing your home on the market just for the heck of it right now really shows an adventuresome spirit…there are a surprising number of hardy folks who just want to put their home on the market to see what happens.
If this is your situation, there is no need to waste the time of a full-service agent. Consider that the cost of this dalliance at $500 or so will give you ample time (the next 6 months) to determine if selling your home is really what you want to do.
Important Update: It’s important to note that you should not expect significant marketing with this option. This type of fee is usually charged for a MLS load ONLY Listing. There may be an optional website thrown in…but a quick search on google will usually show that the site is not well optimized, so no one sees it. The time to upload a listing to the MLS is maybe an hour or 2 with all the paperwork. Consider this when you pay your Fee.
Needless to say, the FEE is usually charged upfront regardless of whether you sell your home during the listing period or not. But the upside is that if you do sell…you’re only out $500 or so to YOUR AGENT, but if you have a Buyer’s Agent who finds the buyer, consider the fact that you’ll probably have to pay them 3 ~ 3.5% or more to bring their buyer’s offer to the table.
The Last Reason you may consider a Discount Broker is that you had a Really Lousy Experience with a Broker who charged you a lot of commission and didn’t really do anything to sell your home. I can’t blame you for not wanting to repeat that sorry mistake again. It is unfortunate that in the real estate community, you can pay the Exact Same amount of money for Great Service and For Lousy Service. And up to this point, it’s been mighty difficult to have an accurate tool for evaluating agents. After all, who wants to conduct interviews with 20 agents and then try to determine who is really good at what they do?
That’s one of the reasons that Blogs are such a powerful tool when researching the type of agent who is worth paying for. Through blogs you can research to see if your agent actually Sells Homes and the advise they give for FREE. You can also investigate how they deal with issues and resolve negotiations. All this can be done PRIOR to meeting an agent… in the privacy of your own home.
If you have a situation that needs the services of a Specialist, such as a 1031 Exchange, an Investment Purchase, a Foreclosure or Short Sale, expertise in these areas can be explored through a good real estate blog.
Audu Real Estate has saved our home owners thousands of dollars through careful negotiation and complete analysis of the cost implications of an offer. We’ve also successfully negotiated hundreds of thousands of dollars in settlements for homeowners who were in distress. At these closings, our clients NEVER ask us about what we did to earn our commission. They know.
If you’d like to talk with clients who have used our services or would like to read what they have said about us online, please visit our website or contact us. It is our distinct pleasure to serve.
Oh, by the way, we do give a Significant REBATE to clients who Buy and Sell from us. Contact us to hear our options which have netted many home owners EXTRA dollars in their pockets at the Closing Table.