Discount Real Estate Brokers: How Do They Cut Costs?

The discount real estate broker is becoming more common in today's market. There are typically several discount brokers for you to choose from in any market. Here are a few things to consider about why discount brokers are cheaper and how they work. The idea behind the discount broker concept is that they believe they can make up for the money, with more volume. By discounting their prices, they hope that more customers will come to them and they will be able to sell more houses than they would otherwise. Most discount brokers do not spend as much time with each individual customer. Instead, they try to focus on selling as many houses as possible in the shortest amount of time. By cutting down on the amount of personal time, they can save time and sell more houses. There are many different types of discount brokers out there for you to choose from.

Flat-Fee Listing

One variation of the discount real estate broker is one that charges a flat fee for a listing. With this type of broker, you are only going to pay a certain amount to list your property with them. They are going to sell the house regardless of how much it costs. If you have an expensive house, this can really save you some money. However, you should be aware that with this type of listing agent, you are still going to have to pay the commission for the buyers agent in most cases. Some people are caught off guard by the fact that they still have to pay another commission.

Small Percentage Listing

Another type of discount real estate broker offers listings for a very small percentage. Instead of the normal 6 or 7 percent, they are going to charge 2 or 3 percent. This allows you to save quite a bit of money overall on the sale of your house. 

Commission Rebates

You might also agree to work with a broker that provides commission rebates. With this type of broker, they are going to give you a percentage of the commission that they earned after the sale. For example, they might get 3 percent after the split with the other agent and then they give you one third of that amount. This allows you to get some cash in your pocket soon after the transaction is completed. When you are working with this type of real estate broker, you want to make sure that everything is in writing. If a broker promises you a rebate, you want to make sure that the details are included in your contract with them. 

MLS Listing

Some discount brokers will also charge you a certain amount of money to list your property on the multiple listing service. This allows other real estate agents and potential buyers to see information about your property. These brokers will do nothing else and you will be in charge of selling your own property.

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