Discount or regular realtor?

Question

I'm thinking of using a discount realtor to sell my home. They charge 4% and say they pay the buyer's agent 2.7%. Is that the same percent the realtor gets from a traditional agency? I assumed it would be 3% (1/2 of 6%). If there is a .3% difference does that keep some agents from showing your home?

Does anyone out there have an opinion about Eagle Realty in the St. Paul, MN area? Good,bad,ugly?

Am I being penny wise pound foolish trying to use a discount realtor?

What's the easiest way to get my own comps? I don't trust a stranger-in-a-suit enough to believe the slick comp. reports they fabricate.

Thanks

Answer 1

2.7% instead of 3% might keep some buyer's agents away, but if their client is a good fit for your property, not the good ones.

On the other hand, as a buyer's specialist, I cannot recommend highly enough to go to a full service realtor to list your property. One that knows what they're doing is worth every penny, especially in this market. Discounters make a certain amount of sense when it's a red hot seller's market - but don't look for that to happen again anytime real soon. In the current market, a discounter is nothing more than meat in a good buyer's agent's jaws. You want to sell your property, and particularly if you want a good price, go full service.

Someone suggested zillow. Around here they are way too high. I've heard from places they are way too low, but never anywhere where they're about right. This makes them useless for anything except vanity.

Answer 2

The normal amount of commission offered to a buyer's agent is 3% - I would be hesitant to consider offering less in today's market. If homes in your neighborhood are selling quickly then a discount realtor is probably ok. If your home is more unique or in a slow selling area then a more full service realtor might be the way to go. I worked for a full service realtor who did a really great job for her clients. Every home was photographed and had a lovely brochure made. All of the listings were professionally done. She advertised the homes in all the local papers. Feedback was solicited from other realtors who showed the house to help with the selling process. When a contract was placed on the house her closing team worked hard to get the contract to settlement. She even found financing for other realtor's clients who's financing fell through so that the house could be sold (good financing too!).

The easiest way to get your own comps is to check on line and in your local paper for homes in your area that sound like yours. Keep in mind that a house in a more desirable area that looks exactly like yours may go for more because your's is in a less desirable area. You can ask three or four realtors to provide you with comps it's a free service and they actually don't mind too much. If they appear to mind then cross them off your list and move on to the next one.

My other advice on choosing an agent is to go around town and see which agent is selling the most homes in your area and check the paper to see which one has the best advertisements then give that agent a call. Good Luck.

Answer 3

The easiest way to get comps is to find out what houses recently sold in your neighborhood in your local govt. public records. Do not fool around with discount realtor. If they have to discount their prices in order to remain competitive, chances are that they are not as good as the other realtors that charge 6%.

The better realtors do not discount their pricing nor do they need to. Most good realtors have more work than they can handle and there are more people who need a realtor than there are reputable realtors who will do the job right.

Answer 4

Commissions are negotiable. There is no such thing as a normal commission. Personally, I charge 6% with 3% being paid to the selling brokerage.

Don't know about Eagle Realty as I am not in St. Paul.

Should you use a "discount REALTOR"? Depends on what you get for your money. If you are not getting full service then yes, I think you are being "penny wise pound foolish".

If you don't trust the REALTOR you are thinking about working with you need to find someone whom you do trust. Trust is a very important factor in choosing someone to handle what is probably the largest asset you own. Keep interviewing until you find someone you are comfortable with.

If you can't accept the REALTORS comps then your best bet is to have a licensed appraiser do a full appraisal on the property. Since you have a trust issue choose the appraiser yourself. Tell them you are considering putting the house on the market and need to know the "fair market value".

Answer 5

Discount Realtor = discount services

Answer 6

Don't rely on inforamtion you get at zillow.com. I've looked up property on there, and (for example), one home I was interested in is listed as having a value at nearly $500,000, it's been on the market at $339,000 for months and is still sitting there.In my opinion, use a regular realtor. One of the "major" discount realtors whom I will not name is the ONLY national real estate company that has a site dedicated to how BAD they are, run and maintained by former clients of theirs.

Answer 7

Yes, definetely don't use Zillow for accurate information. Can we put Zillow to a close? Inaccurate information is OK sometimes but NOT when it comes to your most valuable investment. So, don't take chances.

Regarding, full service vs discount brokers, you really get what you pay for. If you were to sell real estate on your own by owner, you would on average receive 16% less for your property than if you did when using a professional, according to the President of the National Assocation of Realtors (NAR). See http://burlingamerealtor.com/serendipity/index.php?/archives/2006/02/20.html for more info about whether or not to sell by owner.

In my opinion, you will receive less when using a limited service broker than when using a full service broker. If you offer your broker less, they will be less motivated. Less motivation to sell a home means less money, in the end. It's difficult to measure the dollar amounts but there's a reason why people use full service brokers.

Answer 8

You want to use a larger realtor because you will have more buyers. but keep the contract short, If you get a lazy agent then you can switch. ask around to see which realtor a mortgage lender would use etc. you'll start to hear specific names again and again. thats the agent you want to use. a good agent improves the value of your home.

Answer 9

Use a "regular" realtor. You'll get what you pay for.

Re comps, use www.zillow.com to see what houses are going for in the area you're looking at. However, those "slick strangers" are professionals who have no real vested interest in giving you false information re comps.

Answer 10

a full servide realtor will usually get about 5800 dollars more for your home than selling it yourself and about 3600 more than a discount one. You do the math.