Can A Discount Broker Really Save You Money?

Updated 9/9/2020

Barry Kunselman | 303.887.0588 | Contact Barry

 

Commission. Some see it as a dirty word, but when it comes right down to it, it’s the way your real estate agent earns their living. And it’s the incentive they have to do the best job to get your home sold—or next home purchased—with as much efficiency and for the best price possible. Don’t discount the importance of a great real estate agent.

 

Why discount brokers could end up costing you more in the long run

Discount brokers—those who offer up their limited services at a reduced percentage or flat rate—have been popping up at a more rapid rate with the housing market boom. They promise the same, or even better, services at a lower rate than their traditional competitors. But when it comes to discount brokers, there are several reasons why it should be buyer—or seller—beware. Here are some things to think about before you hire your next agent.

 

 

PERSONALIZED ATTENTION 

This is one of the biggest and most important transactions you’ll make in your life, and you deserve the one-on-one attention and dedication a traditional agent offers. Discount brokers have to handle more deals to earn a living, which means they have less time to dedicate to you and your home.

AVAILABILITY

Deals happen at all hours of the day. Traditional brokers often work nights and weekends to ensure their clients are being served at the highest level. But discount brokerage firms typically run from 9 am - 5 pm, putting their schedules above your convenience.

NEGOTIATION EXPERIENCE

Traditional brokerages predominantly consist of seasoned agents with years of experience. That’s compared to discount brokers who tend to be less seasoned, without the essential market and contract knowledge to ensure you get the best deal possible. In fact, a traditional broker will likely get you a better price than a discount broker will be able to—which means they could bargain away more than the difference in commission is worth!

SKILLED REPRESENTATION

You might have heard that discount brokers are now offering the “transparency” of letting buyers and sellers work directly with each other. Don’t be fooled! That simply means you don’t have the professional representation you’re paying for. A real estate agent’s full-time job is to act on behalf of their client, finding properties they might not be able to access on their own, negotiating contract details, and serving as a liaison between buyers and sellers to ensure their client makes it to the closing table with a deal they can be happy with.

START TO FINISH SUPPORT

Overall, the main difference between discount brokers and traditional agents is the level of support you’ll be able to expect. A traditional realtor will earn their commission through:

• Competitive home pricing based on market insight and comparing all other houses in the area.
• Using a suite of services to prepare a home for sale, including staging and professional photos.
• Applying advanced marketing techniques, such as social & digital advertising, print collateral, plus networking with other agents, contacts, and traditional brokerages.
• MLS Access — a vital tool in buying or selling your house is often not available at a discount brokerage.
• Hosting and immediately following up on leads from Open Houses, Broker Opens, and showings.
• Negotiating contract details to ensure you get exactly what you want- and even more- out of your transaction.

 

See how a discount broker might actually cost you money: 

Get In Touch

Discount brokers imply that you will get more money because you are paying less commission. A traditional full-service broker implies that you will net MORE, even after paying a higher commission, because of their expertise and knowledge. 

The bottom line is, traditional brokerages simply bring more to the table. And when you choose a PorchLight agent (me), you get even more service, support, and dedication. Buying or selling a home is a big deal. Don’t make a mistake by outsourcing it to the lowest bidder. Call today! Barry Kunselman | 303.887.0588 | barry@porchlightgroup.com

 

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