Jason Gelios Michigan REALTOR®
  • HOME
  • The AskJasonGelios Show
  • FOR SELLERS
    • DIVORCE
    • SELLING TIPS
    • SELLING BY OWNER
  • FOR BUYERS
    • HOME BUYING TIPS
    • GET APPROVED
  • PRESS
  • JASON'S BLOG
  • Jason's Real Estate Book
  • Connect With Jason Gelios
  • TESTIMONIALS
  • PODCAST: AskJasonGelios Show
  • HAPPY LIVING DIGEST
  • SENIORS

Reality of a Discount Real Estate Service

6/1/2016

0 Comments

 
By Jason Gelios   ( 5 Minute Read)
Picture
If you have even thought about selling your home you have probably heard of discount real estate services. These companies have been around for a while now attempting to get a piece of the real estate pie at a discount. Here’s how they work. Discount Brokers offer to list your home at a reduced rate or a flat fee with promises that you will save a ton of money on paying a standard real estate agents commission. They will make promises that your listed home will get the same exposure and interest as you would if you listed with a real estate agent.

Of course, the seller hears this and thinks this is awesome! This sounds great that a home can be listed at a reduced rate with the same exposure. After all, all it takes to sell a home is to list it on the MLS (Multiple Listing Service) right? And who needs a fully licensed REALTOR who belongs to associations and follows the latest trends right?

Nothing could be further from the truth!

While I can certainly point out the major benefits of hiring a full service REALTOR  to list AND sell your home, let’s look at some reasons why you should not list with a discount brokerage office.

Scenario 1:
Let's assume for a second that a buyer’s agent named John Doe shows a client two properties which are comparable. One is offering him a co-broker commission of 3% and one is only offering him 2%. His clients like both properties and ask John for his advice, which is he likely going to recommend to his clients? All other things being equal it is quite likely that John would recommend the property which made him a higher commission for no reason other than that he would make more money. By agreeing to a 5% listing commission you are enabling your agent to offer a higher commission to buyer's agents. The increased incentive for a buyer’s agent to bring clients will result in increased exposure and will help get your home sold faster and for more money. Not to mention that a Licensed REALTOR usually has a large sized network to share your listed home with for even more potential buyers.

Scenario 2:

It is 2016 and we are in a seller's market right now. You will not find many folks who will argue with that statement. Properties are selling in record time as buyer’s line up to purchase homes as soon as they are listed. In markets such as this many think a simple MLS listing with no real marketing will sell a property as quickly and for as much as a full service agent could. The statistics thus far from 2016 finding from National Association of REALTORS states that houses listed for sale by a full service brokerage are selling at a faster rate versus those homes listed by a discount brokerage.

So what does this mean?

While it may seem like a logical idea to list your home with a discount brokerage to save money, you are essentially leaving money on the table while taking a risk that your house will sit longer than those listed with a full service brokerage. Full service brokers often get you more exposure and therefore a faster sale because you are empowering that agent to do more for you.  

For most people, a home is their biggest transaction of a lifetime. Why leave your home sale to chance with a discount broker and potentially losing out on a potentially higher offer on your home.
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.


    Picture

    Author

    Jason Gelios is a  Husband and Father. After that, a Top Producing REALTOR®, Author of the books 'Think like a REALTOR®' and 'Beating The Force Of Average', Creator of The AskJasonGelios Real Estate Show and Expert Media Contributor to media outlets across the country.

    Jason is dedicated to providing real estate advice and education to home owners, buyers and sellers with content that is practical and based on real world situations.

    Archives

    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    July 2020
    May 2020
    April 2020
    March 2020
    February 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    April 2015

    Categories

    All

    RSS Feed

About Jason Gelios
For Buyers
For Sellers
Think Like a REALTOR® Real Estate book
Valuable Resources
AskJasonGelios Real Estate Show
Jason Gelios' Real Estate Blog​

In the press

Contact Jason Gelios
Copyright    All Rights Reserved    Reach Jason Gelios Direct at 586-419-2231    jasongelios@itsallabouttherealestate.com
Photos used under Creative Commons from wuestenigel, MarkMoz12, Spencer Means, Mrs Airwolfhound, r.nial.bradshaw, MarkMoz12
  • HOME
  • The AskJasonGelios Show
  • FOR SELLERS
    • DIVORCE
    • SELLING TIPS
    • SELLING BY OWNER
  • FOR BUYERS
    • HOME BUYING TIPS
    • GET APPROVED
  • PRESS
  • JASON'S BLOG
  • Jason's Real Estate Book
  • Connect With Jason Gelios
  • TESTIMONIALS
  • PODCAST: AskJasonGelios Show
  • HAPPY LIVING DIGEST
  • SENIORS