Is Using a Discount Broker Right For You?

Sellers, the market is yours! That’s right! So, why would you need a full service agent? Everything seems to be selling in a matter of time, so why not go with the broker that will give you a discount? Well, here are few reasons and scenarios you should run through your head before signing up for the “discount” you think you’re getting.

1. What Kind of Service Are You Really Getting with that Discount?

If you’re reading this blog, there’s a pretty good chance you’re considering selling your home, which means at one point you needed a job, and likely still have one to pay for the American dream that you come home to every day. After all, you love your prize possession so much, that’s why you work (or have worked) to pay for it.

Now, imagine this…you go to work one day, and your boss says this, “Hey, do you think you can do your job this month, do all of the same duties, do your job well, and by the way, I am going to discount your pay, because I figure I can.” How would that make you feel? Would you go to work every day smiling, and perform your job at a level 10, knowing your pay had just been cut?  

Think about it, that’s how the broker that just discounted for you might feel. Don’t be surprised if the broker takes days to call you back, slacks off in the marketing department, and just does a sloppy job in general. It is possible that broker likely views your working relationship together like this, “discount my fees, so I’ll only work half the time.”

2. Does Your Broker Really Know How to do Anything Except Discount?

This is another one to think about. If they said yes to discounting for you as the seller right away, what makes you think they won’t do the same when it comes to your asking price of your home that you’re trying to get top dollar for? How can a broker prove the value of your home to a potential buyer, if they can’t even prove their value to you as the seller?

How would it make you feel when your broker brings you an offer under your list price? Likely, pretty upset. Here’s the cold hard truth, though. The broker could care less about your list price or the value you see in your home, because after all they’ve already discounted initially, without even attempting to prove their value to you as the seller. Now it’s your turn to discount Mr. or Mrs. Seller. Sad, but true!

3. Is the Discount Really Going to be What You Bargained For?

 
If you’re thinking of going with a discount broker, ask for their sale to list price history. If you’re asking for a 1 percent discount on commissions from your broker (example, $5k off a $500k property), and their sold price is any less than one percent, you should really think about what you’re getting yourself into. 

The numbers will show if the broker discounts his or her clients home value, the way they’ve discounted their own value to you as a broker. Getting a small discount upfront can often cost the seller more in the long run, and you find yourself way off target!

Bottom Line

For some, a discount broker makes sense. After all, everyone is different, and not all situations are the same. Just make sure you have done your homework. It will pay off for you as a seller in the long run! Top dollar, full service, and proven results should be what you’re after. Make sure you take care of you as a seller, and hit your goal! You, and your home’s value are absolutley worth it!