Why not hire a discount broker? One who charges less – in some cases, apparently a lot less.
This has been asked time and time again. All agents are the same, right? Then why not just put my home up for sale with a discount broker and sell and save? After all, I’ve seen ads that say “We’ve saved our clients Thousands of $$ over conventional brokers..”
First, let’s show you the break down of how agencies get paid.
Let’s assume a $310,000 home sells for $300,000.00 and there is a 6% commission. Usually there is the listing broker and the selling broker splitting the 6% (3% + 3%) equally, or $9,000.00 each
Would you want to offer less to the agent that has the buyer? say just offer $3,000? Maybe $6,000 or so? Probably the buyer’s agent would not show your property. You would lose out. True – the buyer’s agent works on behalf of the buyer but is going to direct traffic to homes that will pay the “standard amount” of 3%. Thus, cutting down on the buyer’s agent commission is dangerous.
That leaves the listing agent fee. Your marketing money.
The discount broker as a listing agent would have to cut the amount of marketing to sell your home.
Is this a good idea? MAYBE – if we are in a true Seller’s market. In a true seller’s market “the buyers are going to come anyway” might be the thought. Few homes for sale – many buyers. You may just put a “For Sale By Owner” sign up and you will be flooded with inquiries.
How do you know if you priced your home right? Are you planning on calling a Realtor to use their “free” services (take advantage of their services without expectation to pay for any of it?). Are you planning on taking on the risk of doing paperwork and disclosures in this litigious society? You will probably find that the cost of the Realtor could be beneficial in the long run!
Additionally, a buyer looking to work with you directly may not be qualified. Are you going to help them become qualified? Is a buyer who is not working with a Realtor already very motivated? (95% of all buyers use Realtors when purchasing resale homes. Buyers working with Realtors are usually qualified and are buyers and not lookers).
What about in a Buyer’s Market? Lots of homes for sale – few buyers. Should we skimp on the marketing?
We all know what happens to other companies when things are tough. They cut their advertising budgets and then fewer sales. Cut some more. Even fewer sales. Finally the company may have to close down.
Does it not make more sense to advertise MORE to attract the most possible buyers?
What does Sell This Place Now and Better Homes & Gardens – Gary Greene offer that discount brokers do not?
1) A large sales force. City wide we have over 1,000 agents going to work for you.
2) Home in at least 79 different web sites with expanded photo coverage (look at Realtor.com web site and compare number of photos offered by discount companies and the BH&G brand.
3) Bundled Services: Mortgage, Sales, Title, Renovations all under one roof
4) Postcard mailers with your home on it mailed to thousands (with the price of postage now, this is quite expensive – but effective)
5) Known name in the industry. It is important to have the leverage of the name brand when dealing with other agents, mortgage companies and relocation.
6) Worldwide relocation. The BH&G network is worldwide. With one of the largest arrays of corporate accounts feeding us sellers and buyers – we may have that right buyer for your home. Now with even more relocation buyers and sellers! Better Homes & Gardens Real Estate Gary Greene is part of the world’s largest relocation network and works with employees from prestigious firms such as Shell Oil, Exxon-Mobil, the U.S. Military branches and many, many more!
7) Internal marketing departments. At discount brokers, the one agent takes care of everything from planting the sign to running his/her own copies to carrying mail to the post office. Additionally, most discount brokers are individuals themselves with no other staff. We have an entire department dedicated to marketing!
Which one of these items would you like to cut? The Relocation? The Advertising? The large Sales Force? The Marketing Department?
The TRUTH is: More marketing money= more potential buyers attracted = more offers = higher sales price potential!
Norman Frenk and the Sell This Place Now team have the education, expertise, marketing plans and marketing dollars to get your home positioned correctely on the market and exposed to thousands of potential buyers. Call to get your places sold now!