Discount Brokers/Limited Service Brokers Can Be a Good Choice.
Regardless of what the industry tells you (including real estate agents) these firms have a place at the dinner table and serve a vital function in the industry. Let’s be honest – all people are a little frugal, and if you could find a cheaper alternative to paying a Realtor, you would. On occasion, discount brokers/limited service brokers can save you money.
Here are two specific cases where we refer our clients to limited services/discount Realtors:
Scenario 1: You have a home under $120,000 (don’t be jealous, Californians and New Yorkers).
Real Estate is a business, and agents are people who rely on that business to pay their own bills. So, if your agent works at a firm that takes a cut of the commission (in many cases 30-50%), the agent must determine if selling your home is a good business decision. Lets look at the numbers:
- Home Price = $120,000
- 3% commission (Listing Side only) = $3600
- Minus Firm Split (35%) = – $1260
- Minus Taxes (25%) = – $900
- Minus marketing = – $800
- Leaves a net commission of $640, to the agent
If the agent only nets …Read More