We are considering listing our house for sale with an agent. A
local agent contracts with a 3% (actually , only 2% if the listing agent sells my house) commission. The obvious advantage to
using this agent is to save thousand$ in commissions as compared to the typical 4-6+% asked by others. This agent is not a "fly-by-nighter" and has been around for about ten years.
In keeping with the saying,"if it seems to good to be true......",
are there any disadvantages by using this discount agent?
2007-03-31 01:30:35 · 7 answers · asked by ursaitaliano70 7 in Business & Finance ➔ Renting & Real Estate
Most likely it is a advantage due to the dropping market values. Fewer people have to equity to pay for high commissions. Just listen to the response so far there just looking after there own greedy skin.
It is not like they will list you on a all inclusive MLS list since there are several and that is how they shorted the market.
http://www.breakingbubble.com/
Best of luck
2007-03-31 03:11:41 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Discount brokerage sounds like a good deal because the commissions for sale are thousands of dollars and it represents a substantial savings. However, common sense tells you that you seldom get the same services or level of exposure if you're paying half price.
You can choose to shop at WalMart or Nordstroms, but wouldn't expect to get the same quality or level of service at both.
In most cases, discounted fees result in longer market times. If an agent can show the house down the street and make a $3000 payday, or yours and make $1000, which house do you think they'll advocate to their buyers? It's the same amount of effort to put either deal together.
If you have the luxury of time for a longer marketing period - or if the house is so irresistible it will sell quickly regardless of the commission offered, then you're a good candidate to employ a discount broker. Otherwise, you should take a more traditional route in my opinion.
2007-03-31 03:16:32 · answer #2 · answered by njc_flhtc 4 · 0⤊ 1⤋
First how much are you offering a the buyers agent? anything under 3% to buyers agent, for the most part, will get you no buyers agents bring by their clients, different off course if you are selling a house over 1 mil, then % requirements will change
So first if offering less then 3% to buyers agent on a house under 1 million will get you very little bites, most buyers agents will not show your place to there clients, illegal but happens all the time
second what is the seller agent going to do for their %, advertising, mailing what are you going to get? if their answer is the MLS well that means nothing if you are going to offer under3% to buyers agent
2007-03-31 01:47:15 · answer #3 · answered by goz1111 7 · 0⤊ 0⤋
I'd be careful...it sounds like the agent might be making up the loss by taking commission from the buyers, too, and if that's the case, then there would be some serious questions of loyalty. But check into it. Maybe that's not the case. You might also want to consult a real estate attorney.
2007-03-31 01:35:46 · answer #4 · answered by chrisatmudd 4 · 0⤊ 0⤋
Not really. You get what you pay for. Let me know if you need a good agent.
2007-03-31 01:34:10 · answer #5 · answered by sharon r 1 · 0⤊ 0⤋
In the south 3% is Standard. Steer clear of 1.5% and companies that JUST list your home in the MLS.
2007-03-31 01:39:08 · answer #6 · answered by Jared S 2 · 0⤊ 0⤋
Yes an agent will be discouraged bringing his/her clients to see your house. So it will stay on the market and stay and stay..not worth it...
2007-03-31 01:33:17 · answer #7 · answered by Anonymous · 0⤊ 0⤋