When it comes to selling your home, there will be an influx of decisions to make on the horizon. For example, you’ll need to consider the following:
- When you will put your home on the market
- Which improvements to make before the sale
- The amount to price your home for
- Whether to choose a discount broker or a traditional real estate broker
While we can’t answer most of the above for you, we think it’s important that those planning to sell their home choose a traditional real estate broker over a discount broker, for a number of reasons.
What is a Discount Broker?
In recent years, discount brokers have been rising in popularity. When it comes to real estate, a discount broker is a tempting option for many home sellers, as the commission for these brokers can be as low as 1%. This is a stark contrast from the 6% commission traditional agents receive. Many believe that 6% is too high of an earning for traditional agents, but they fail to understand that the greater expense is made worthwhile by what they’ll get in return during the sales process.
Discount brokers thrive because people buy into their low commission rate. The thought of keeping extra revenue from the sale is too enticing, so they’ll go with the less expensive option. What they fail to understand is that cutting corners here could ultimately cost them a sale.
Why Go With a Traditional Agent?
A traditional agent can offer you sage advice that a discount broker will not. Because of the higher commission fees, traditional real estate brokers are able to hire skilled agents, as well as offer you services and information during the sales process. The slashed price of a discount broker equates to slashed assistance. Because of their low commission rates, the agents they hire aren’t paid nearly as much as they should be. So where is the incentive for them to perform their best? With a traditional broker, you won’t end up burned or disappointed by how the home selling process played out.
Cooke Realty Partners
Selling a home is difficult, stressful and can end up unsuccessful if you don’t allow yourself access to professional resources. Don’t cut costs by hiring a discount broker. Stick to a traditional real estate broker and you should have home selling and buying success.