What You Need To Know About Getting The Services Of A Discount Broker
Most people these days are out to get the best deal for their money and consistently look for ways to pay less for services and products. In the real estate realm, there are provisions to cater to such clients or customers. The service of a discount broker is typically required by investors who are either working with a really limited budget or really just want to save more money.
If you’re thinking of hiring a discount broker to help you accomplish your different real estate activities, provided below are some important considerations to ensure that you truly are getting the best value for your money or are completely aware of both the benefits and limitations this decision would present.
- The main advantage of hiring one is the cost. According to real estate investment experts, the rule of thumb is to make sure that your trading cost should not go beyond or be more than 1%. There are brokers who present a really cheap service fee but if you peel through the layers of their service, you just may find some additional fees that you definitely have to pay for to receive full service. While you’re shopping for a discount broker, be sure to review the breakdown of fees and determine if it’s a reasonable amount based on your investment plan.
- Worth mentioning as well is that discount real estate brokers have different ways of taking down their fees. If you wish to better understand how you can save after getting their services, ask about how they are able to provide you a discounted rate. There are brokers who offer a fixed or flat flee; others break down their rates depending on the level of work you require them to accomplish. There are also some that offer a commission on rebates, especially if you purchase another property from their agency. There are different terms, but the main idea is to understand how the discount will work for you.
- There are some people who may discourage you from hiring one, claiming that discount brokers offer substandard service – meaning, since they’re paid less, they may be inclined to work less as well – but that should never be the case. For the work that they say they will do for you, they should be able to do it well.
- Lastly, you may want to check how efficient a discount broker’s customer service is beforehand; see if they are easily reachable and prompt in catering to queries and other requests. Otherwise, you may be better off with the usual broker who will consistently be ready to serve you whenever you need him.