| Every single person on the planet wants to get as | | | | marketing strategy will be basically identical, the |
| much as possible for their home when they sell. And | | | | difference lies in the service. |
| they don't want to pay too much in real estate | | | | With a full service broker, you'll be able to talk to |
| commissions while they're at it. In recent years, | | | | your agent on a regular basis and they'll most likely |
| discount brokers have been advertising the fact that | | | | be responsive to changing conditions and will answer |
| they charge less and save people money. I'm going | | | | any questions you might have. With a discount agent, |
| to tell you how they charge less and why it may or | | | | you probably won't get much personal service. When |
| may not be the best thing for you. | | | | you call them, they may tell you to "make it quick" |
| First, lets talk about commissions. When you sign a | | | | and not have time to deal with your issues because |
| contract to list your home with a discount agent, you | | | | they aren't setup to do that. Since the payoff when |
| agree to pay them a commission and they share that | | | | they sell a home is less than a full service agent, they |
| commission with any other agent in town who can | | | | spend most of their time trying to get new clients. |
| bring you a buyer. How much those discount agent | | | | They don't have a lot of time to service their |
| share with another agent ranges from 2% to %4 in | | | | existing clients. |
| most areas. Whether you go with a full service agent | | | | But this isn't necessarily a bad thing if you're familiar |
| or a discount agent, you'll agree to pay another | | | | with the home selling process and know how to |
| agent if they bring you a buyer. | | | | properly stage your home for showings, negotiate |
| So if you agree to pay 3% to another agent who | | | | contracts, and handle all the closing details with |
| finds you a buyer, the agent listing your home gets | | | | lenders and attorneys. If this something you're |
| anything on top of that. The only difference | | | | comfortable with, then a discount broker would most |
| between full service and discount agents is how | | | | likely be a good fit for you and you could save a little |
| much of what is left over they get at the closing | | | | money. |
| table. Discount agents will often take a flat fee at | | | | If you see that you'd rather focus on moving to |
| closing or up front. Full service agents typically get | | | | your new home and not all the details associated |
| their commission at closing. Their commission is | | | | with real estate contracts, then you'll probably save |
| typically twice what the agent who finds the buyer | | | | money and headaches going with a full service agent. |
| gets. In our example, the full service listing agent will | | | | Missing critical details on a contract or at key |
| get 3% also. This would bring your total commission | | | | moments in the process can often be extremely |
| to 6%. With a discount broker it would be 3% plus a | | | | costly for people who don't have experience selling a |
| flat fee or something like 4% or 5% total | | | | home. |
| commission. | | | | So there you go. I hope this helps when you're |
| With either a discount agent or a full service agent, | | | | deciding which agent to hire to handle the sale of |
| you'll typically get access to the MLS. Since the | | | | your home! |