When you are out in the market to sell your home, then you need to bear a certain cost. One of the biggest costs is the commission you need to pay to your realtor. The traditional listing agent levy a fee of around 5% to 6% for closing the home sale, in return for the services provided. However, there are brokerages that can sell your home for a much lower fee compared to the former. These kinds of agents that provide services at a discounted price are called discount agents or low commission agents.
If you want to understand all about discount real estate brokerage, what they offer you, how they charge, and then decide whether it is the right choice for you or not, then these are the details you need to know.
Who is a discount broker?
A discount broker is just like any real estate agent, but with some important distinctions. A regular real estate agent is the person who can assist and guide you with the entire buying and selling of the house, helps you with every step of the transaction, and takes up the entire responsibility of selling the home on your shoulder.
A discount brokerage provides limited services and may not provide complete support to you. Usually, these agents connect with the sellers online and offer them lower rates. Since they deal with a big volume of clients, they may not offer you complete services.
How do discount brokers charge?
While the traditional agents charge a 5% to 6% commission, which is split between the buyer and the seller’s agent, a low-commission listing agent charges only 1% to 2%. You need to bear the cost of the buyer’s agent.
So, with the discount brokerage, you end up paying 4% to 4.5% of the sale price of the home and save thousands more than the traditional commissions. Some discount brokerages also work on a flat fee model and not the commission percentage of the home sale.
There are big real estate agents that offer nationwide services. These national brokerages also offer services at a reduced fee.
The services offered by the discount brokers
While it may be tempting for you to sign up for Oahu discount real estate brokers, it is also important to know about the details of the services they provide. Their services and charges can be compared with other agents, and then you can take your pick between the discount real estate broker or a regular broker.
The discount brokers offer low rates but they usually skip all the time-consuming home sale services. The low-commission agents claim to offer all the home sale services just like a traditional agent at a low fee, but they may not provide you 100% personal attention.
Here are examples of the services that may not be provided by the discounted agents:
- The traditional agents offer all the help to the home sellers including the home staging. They provide important tips to ensure that your home looks visually appealing to attract a host of buyers. A discount real estate broker may not include this service as part of their package.
- A discount broker works with many clients at a time, and this is why it is not possible for him to offer individual attention to one seller. This may mean slower response times, which may be upsetting for you.
- The sellers who want marketing materials such as brochures, yard signs, etc. from their broker may not get the same from the discount brokerage firm. Even the Flat fee MLS providers offer these marketing materials. They also help you schedule multiple open houses which can get you good offers. The discount real estate brokers may not provide all these.
Do you want to go with a discount broker?
Now that you know the benefits and drawbacks of hiring Oahu discount real estate brokers, you can take to call. If you are fine to research certain things on your own and do not require much assistance, then you can save a lot of money by choosing a discount brokerage. If you are an inexperienced seller and looking for hands-on support in home selling, then be informed that discount brokerage may not offer you round-the-clock assistance.
Research the websites, read the consumer reviews, and know more about your local market to know to work with which agent can help you.
- In a hot selling real estate market in Oahu, the homes sell quickly and you may not need full services. In this case, you can safely go for a discount real estate agent firm to sell your home.
- But if you are selling a home when the market is not in the favor of the seller, then the homeowners may find it challenging to get a pool of buyers. They may be more comfortable working with a traditional agent.
Also, discount brokerages may not work in your area. They operate only in select territories. So, it is imperative for you to find out whether a low-commission realtor works in your area. There are many big national brokerages that may work in your region. You can prepare a list and decide on one.
When you search for “discount real estate broker in Oahu,”, then you will get many links. Some brokerage websites allow you to enter your ZIP code and then you can find whether those agents can work for you.
At the time of comparing the brokerage firms, ensure to calculate the exact fees they are going to charge you. This will help you know how much advantage you are getting compared to the traditional 5 to 6% commission.
If you choose a flat rate discount brokerage company, then consider the value of your home. For example, if an agent is charging a 5% commission to sell a house worth $250,000, then you will have to pay a sum of $12,500 as commission fees. Half of this amount will go to the real estate agent that represents the buyer. If you go for the flat rate, then any company that offers services below $6,250 means the best savings.
If you decide to work with the Top Low Commission Real Estate Agents in Oahu, then you can meet the agent and ask them certain questions. Since they have been working with a large pool of clients, you may want to know more about the time they will invest in your deal, the experience they hold, the number of houses they have sold in the past, etc. You may also ask about the ambit of the services they provide.
All these details will avoid disappointment later and you can have a fulfilling home sale!