The Myth About Discount Real Estate Brokers

The Myth About Discount Real Estate Brokers



The Myth About Discount Real Estate Brokers
Unfortunately, perception is​ everything! Politicians know this, which is​ why they spend millions of​ dollars on election campaigns .​
The overwhelming majority of​ people will be influenced by ads and​ will vote accordingly .​
Open any newspaper and​ see how ubiquitous real estate ads are and​ why not, real estate is​ the​ largest industry in​ the​ US.
When someone wants to​ sell a​ home he or​ she signs a​ real estate listing contract which provides a​ brokerage commission for​ the​ listing broker and​ the​ selling broker .​
Typically, this commission runs about 2.5% to​ 3.0% for​ each respective broker .​
Since a​ large percentage of​ homes are approaching a​ million dollars this represents a​ costs of​ $50,000 to​ %60,000 for​ the​ homeowner to​ sell his/her home .​
If you think about how little work is​ involved by the​ real estate professionals, it​ is​ simply insane especially in​ this age of​ computers, faxes, cell phones, and​ the​ internet .​
It does not make any sense .​
This is​ why a​ new breed of​ real estate brokers have sprung up: the​ Independent Online Discount Real Estate Broker.
The discount real estate broker will list your house for​ less, typically 1% and​ will give the​ buyer a​ rebate of​ somewhere around 1% .​
How do you find a​ Discount Real Estate Broker? You simply do a​ search on any search engine like Yahoo or​ Google, specifying the​ area you are interested in, like the​ city or​ county or​ metropolitan area like San Francisco Bay Area or​ San Francisco Peninsula.
These few minutes of​ searching will save you thousands of​ dollars .​
This is​ one instance where the​ old saying you get what you pay for​ does not apply .​
There is​ no correlation between the​ brokerage commission you pay and​ the​ quality of​ the​ service you get from a​ full service discount broker .​
Many independent online discount brokers are highly qualified professionals who have worked for​ traditional brokerage houses before starting their own online business .​
Clients often ask me how is​ it​ possible for​ me to​ charge one third the​ brokerage fee of​ large real estate companies! the​ answer is​ very simple, online brokers have almost no overhead .​
Brick and​ mortar companies are expensive to​ run .​
They have stockholders, high paid executives, managers, secretaries, and​ foremost expensive ubiquitous advertising .​
Depending on the​ level of​ transactions, real estate agents pay up to​ half their commission to​ the​ brokerage house .​
This is​ why real estate discount brokers are able to​ charge clients less to​ list a​ home and​ give sellers a​ rebate without compromising the​ level of​ service.
Most home buyers today are computer savvy, their search online for​ homes go to​ open houses and​ often call the​ broker only when they are ready to​ put in​ an​ offer .​
Such clients definitely deserve a​ rebate because the​ tasks remaining for​ the​ selling broker are minimal.
One important factor in​ selecting an​ agent is​ that the​ seller should feel in​ harmony with the​ agent .​
The agent is​ going to​ be in​ the​ seller's home for​ a​ number of​ days and​ have numerous interactions with the​ seller .​
Good chemistry between the​ seller and​ agent is​ essential in​ order to​ have a​ pleasant experience .​
The client can also request from the​ agent to​ see Testimonials from previous clients and​ to​ see a​ list of​ transactions for​ the​ last two years .​
Finally, ask the​ agent how long he/she has been in​ business.
Invariably, I​ find that agents with traditional brokers will tout the​ clout of​ their brokerage house and​ their in-house marketing tools .​
There is​ absolutely no truth to​ this .​
It is​ nothing more than a​ sales gimmick .​
It is​ actually unethical for​ agents to​ push their in-house listings instead of​ giving their clients the​ full benefit of​ the​ MLS.
When an​ independent discount broker lists a​ home on the​ internet it​ also gets listed on all major websites like realtor.com or​ mls.com and​ the​ client gets just as​ much exposure as​ with traditional brokers .​
No matter, many sellers are not convinced and​ pay huge listing commissions for​ exactly the​ same service .​
Some brokers offer free decorating or​ even full scale staging as​ part of​ their service.
It is​ important for​ the​ public to​ become educated about real estate transactions since most people will be involved one or​ more times during the​ life in​ buying or​ selling a​ home .​
Traditional brokerage houses have lost and​ are continuing to​ loose business to​ online brokers .​
It is​ important for​ people to​ understand that discount brokers are just as​ qualified if​ not more so than agents who work for​ a​ traditional brick and​ mortar brokerage house .​
Sellers can save thousands of​ dollars and​ buyers can receive thousands of​ dollars in​ rebate by going online and​ searching for​ discount real estate brokers in​ their are of​ interest.




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