When selling a home, one of the key decisions homeowners face is whether to use a traditional real estate agent or a discount real estate broker. Discount brokers offer services at a reduced commission rate, which may seem enticing, but the real question is: should you let a discount real estate broker sell your house? The answer largely depends on your specific needs, the market conditions, and the services you expect.

What is a Discount Real Estate Broker?

A discount real estate broker offers to sell your home for a lower commission. Some discount brokers even offer flat fees. They aim to save sellers money on commission costs, but there is sometimes a trade-off in the level of service provided. These brokers may offer fewer services or limit their involvement to listing the property on the Multiple Listing Service (MLS) without providing the full range of services, such as professional marketing or negotiation support.

Pros of Using a Discount Real Estate Broker

1. Lower Commission Costs: The most obvious benefit of using a discount broker is the reduced commission. In a typical sale, the commission fee can significantly cut into your profits. Saving even 1% or 2% in commission can add up to thousands of dollars.
2. MLS Access: Discount brokers often provide access to the MLS, a key tool in marketing a home. This can give your property exposure to other agents and buyers without paying for a full-service broker.
3. Flexibility: Many discount brokers offer tiered service packages, meaning you can choose to pay for only the services you want or need. This can be a good option for experienced sellers who don’t require full support but still want help with certain aspects of the sale.

Cons of Using a Discount Real Estate Broker

1. Reduced Service Levels: One of the biggest downsides of using a discount broker is that they sometimes offer fewer services. For example, you might be responsible for staging, photography, and managing showings yourself. This can be time-consuming and may require expertise that many sellers lack.
2. Limited Marketing Efforts: Full-service agents usually go above and beyond with marketing, including professional photography, virtual tours, open houses, and targeted online advertising. Discount brokers may not provide the same level of marketing, potentially reducing your home’s visibility and appeal to buyers.
3. Negotiation Challenges: Negotiating is one of the most critical aspects of selling a home. A full-service agent brings experience in handling offers, counteroffers, and closing negotiations. With a discount broker, you might be left to manage these processes on your own or with minimal assistance, which can result in a less favorable sale price.
4. Risk of Longer Time on Market: If your property isn’t marketed effectively or is priced incorrectly, it could take longer to sell. A discount broker may not be as invested in getting the best price or selling the home quickly, as their commission is lower, potentially leading to delays and additional costs for you as the seller.

When a Discount Broker Might Be a Good Idea

• Seller Experience: If you’re experienced in selling homes and confident in your ability to handle tasks like staging, showings, and negotiations, a discount broker could be a cost-effective option.
• Hot Market: In a seller’s market where homes are selling quickly, there may be less need for extensive marketing and negotiation skills, making a discount broker more viable.
• Low-Value Properties: For lower-priced homes, the savings from a reduced commission can be more appealing, especially if the sale doesn’t require significant marketing.

Conclusion

Deciding whether to use a discount real estate broker depends on how much support you want and need during the home-selling process. If you’re willing to take on more responsibilities and your property is in a competitive market, a discount broker could save you money. However, if you want a more hands-off experience with a better chance of selling quickly and for top dollar, investing in a full-service agent may be worth the extra commission fee. 

If you are looking for the best of both worlds, good news… It does exist! There are a few “unicorn companies” out there who offered top notch, full service at discounted fees and give you different options to do more work yourself. One of these companies is just990 (www.just990.com). Start your search there.