Discount real estate firms can offer the same services as a regular real estate firm, but for as little as half the price. More and more discount firms have been popping up the past few years as a new trend that could hurt the traditional real estate agents, but can definitely help you as a home buyer! If you want to buy or sell a home but want to cut costs, discount real estate agents will be a great resource for you.
Where did discount real estate firms come from?
Rising home prices have resulted in higher commissions for real estate agents that are not necessarily as qualified to logically receive such high payments. This has fueled the argument that realtors are overrated and overpaid, and many people don't want to stand for it anymore. Discount firms are therefore a great solution to this problem. They often help with various aspects of the real estate selling or buying service, and charge per service or allow you to sign up for certain plans. The rest of the process is left up to you, but it is mostly marketing and viewing tactics that you can easily do on your own. Real estate agents are on hand to answer any questions you might have along the way.
Discount vs. traditional real estate
Traditionally, two real estate agents involved in the selling of a house split the commission fee, which is usually five percent. Bargain priced firms offer considerably less commission rates, where some refund up to 20 percent of the commission to customers and other charge only three percent.
Regular realtors offer the market savvy and industry know how that you want when looking for a home. They are experts at marketing a home and completing transactions, and they have access to databases full of home listings. They are involved in many negotiations and transactions a year, so they have a lot of practice and experience in securing the best deals.
Critics of traditional real estate agents say that the discounted agents are a much better and more cost effective deal. Much of the work done by realtors can be done by the customer on their own and for free, and discount agents let you get in on the home buying or selling process more. Discount service agencies assert that while they do reduce prices, their quality of service is not reduced at all.
How to hire a discount real estate agent
Start by calling a local real estate agency and asking for their discount agent, or by checking the yellow pages or searching online. Be sure to interview potential agents to make sure you understand what services will or won't be provided. Understand the fee structure and ask about all costs, since some firms charge per service. Apply the same quality standards to the discount firm as you would to any other real estate firm—just because it is cheaper doesn't mean you need to settle for less! Once you find one you like, you are ready to start the buying or selling process!
By Lyndsey Payzant