Should You Avail Of The Services Of Discount Brokers?
Every penny counts. And that includes every penny from the sale of your home.
Selling a property can be a tedious and frustrating endeavour, especially for those with virtually no experience in such. This is the reason why most homeowners avail of full-service real estate agents. Aside from listing your property in multiple listing services and brochures, full-service agents can help stage your home and connect you with a professional photographer to help you create a virtual tour of your property. On average, these real estate agents charge somewhere between 5% and 7% of the total sales of the house.
On the other end of the spectrum, there are sellers who have chosen to go the for-sale-by-owner (FSBO) route. Instead of paying real estate agents a substantial amount for their services, many homeowners realize that they can save money by doing all the tasks associated with selling their property by themselves. Of course, this entails a substantial amount of time, effort and even money from the seller.
In the middle of the spectrum are those who have availed of the services of discount brokers. By hiring a discount broker, the seller shares the brunt of the load of selling a property for a significantly smaller amount of money. While full-service real estate agents can charge as high as 7% in commission, a discount broker typically charges only 1%.
But as the saying goes, you get what you pay for. Among the major concerns raised by some homeowners who have used the services of discount brokers include lack of communication and sub-par service. Some homeowners have also reported being surprised by other fees hidden in the fine print. As such, you should be diligent enough to know what is covered and what is not.
That is not to say that one type of service is better than the other. At the end of the day, you (and your personal circumstances related to the sale of the house) will decide whether you need a full-service real estate agent or whether you should opt for a discount broker, or even go the FSBO route.
If you want to sell your home with the minimum amount of hassles or if you want your home sold as quickly as possible, then a full-service agent is for you. However, if you have plenty of time on your hands, you do not mind doing all the legwork, and you want all the proceeds from the sale of your home to go to you exclusively, then go the FSBO route. If, on the other hand, you think that you can spare a small amount of time towards the sale of your property but would want a pro by your side (especially during the more confusing moments of selling a property), you should opt for a discount broker.