The Discount Real Estate Broker

Working with a discount real estate broker can be a good way to save money on the sale of your house. If you are thinking about going with a discount real estate broker, there are several things that you will need to consider first.

Discount Real Estate Brokers

In the world of real estate, many real estate agents would like you to believe that commissions are non-negotiable. They want you to pay the standard 6 or 7 percent, or whatever is common in your particular market. While they might want you to believe this, it is simply not the case. You can negotiate commissions and you can save some money on them. Most of the time, sellers debate about whether they should list with a real estate agent because they do not want to give up such a large percentage of their home's equity. By using a discount real estate broker, you could get the exposure that comes with a real estate agent, without the big price tag. 

Types of Discount Brokers

There are several different types of discount real estate brokers out there that you could potentially choose to work with. One example of a discount broker is the flat-fee broker. These companies will sell any house for a flat fee, regardless of the selling price. For example, they will take a $1000 fee for selling your house even if you have a $1 million property. 

Other discount brokers will simply list your property for you on the Multiple Listing Service, or MLS. This is an online database that is unique to your area. The database has all of the properties that are currently listed for sale with real estate agents in the area. They will put your property on the database, and then you will take care of the rest. They are not going to show any potential buyers the house or do any other marketing for you. 

Caution

When you work with this type of broker, you need to understand some of the potential issues that could come up. Many people think that the fees listed by this broker are the only fees that they will have to pay. However, you will usually have to pay the standard commission for the buyer's agent. 

Also, many times discount brokers have an itemized list of fees. For example, they will charge for putting out a sign, or listing your property on the MLS. Be sure to ask for their fee schedule before you ask them to take care of any service for you.

Who Should Use a Discount Broker

Individuals that want to save money usually employ this type of broker. If you can handle showing the house yourself or can help with marketing, this method could be for you. A discount broker typically works best when you are in a seller's market. When there are plenty of buyers out there, you may not need to pay for a full-service broker. 

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