In today’s real estate landscape, the media often presents the process of selling or purchasing a home as straightforward. While commissions are negotiable, full-service real estate agents’ fees are sometimes perceived as high. Consequently, some homeowners explore alternatives such as flat-fee and discount brokerages.
To offer lower rates, discount brokerages may limit their services and depend on a higher volume of transactions. This model can be effective for some, but home sellers should understand how these brokerages operate and what that means for their transactions. When comparing full-service and discount real estate brokerages, consumers should consider both the range and quality of services offered, as well as the associated costs. Here are some key differences for current or potential homeowners to consider.
Marketing & Exposure
When you list your property with a discount brokerage, there’s a chance you will see limited marketing of your home. The brokerage may provide or offer better than the default package, but these upgrades may come at a cost to you to save on the agent’s bottom line.
With our full-service brokerage, you will always receive professional photos of your property. Our media package will also include a 3D virtual tour, drone photos, videos, floor plans, and interactive maps when deemed appropriate for the property. This media package is simply part of our service to you.
In addition to crafting a beautiful and professional impression for buyers to see, your listing will gain access to our company’s resources. Your property will be listed and displayed on hundreds of sites across the web and potentially more than one MLS. We also invest in digital advertising to increase exposure of your property. Not only will buyers be able to find it wherever they are looking, but they will be targeted to the best of our ability. Your property will also be promoted to our professional network, followers, and readers via our newsletter, e-blasts, newspaper ads, and word of mouth.
The goal is to get as many people to view and show interest in your property as possible. We know and believe that increased exposure can generate more demand and therefore, a higher sales price for you.
Ongoing, Personalized Support
When you choose C21BB to represent you, you will have full access to your agent and personalized attention whenever and wherever needed. If you have a question or need to meet with us, you will know you can reach out and ask. We handle the back and forth and manage the transaction so you can have a hassle and stress-free experience. Clients with limited experience or busy schedules will benefit from an experienced agent doing the work involved in getting a home from listed to the closing table. And when you’ve successfully closed on your home, we will remain an open resource for you to come to with any real estate need.
Since discount brokerages often offer limited services and have a wider range of listings to attend to, service can be depersonalized and much less accessible. You may be more reliant on self-service tools during your transaction and need to manage it more than you would with a full-service brokerage. These brokerages also may not offer post-close support.
Market Expertise
When you hire a full-service agent to represent you, you will receive a comprehensive market analysis prior to listing, skilled negotiation and support to secure favorable terms and prices, and knowledge of the intricacies of your sub-market and contract periods.
Discount brokerages focus on essential services, leaving clients to handle many aspects of the real estate transaction on their own. Real estate transactions can get complex, and you never know what obstacles may get thrown into one until they’re in front of you. This is just one reason why it is beneficial to have an experienced agent working for you.
In Conclusion
While the percentage difference in commission may seem enticing, buyers and sellers should consider the pricing models of some discount brokerages. They may charge hidden fees or sell their services a la carte, which can add up and chip away at your expected commission savings.
An agent’s commission is only part of the picture. While a seller could end up saving money on their agent’s commission, they could also end up losing out on more out of their bottom line. Agents who work for full commission are motivated to sell your home for more. A 1.5% savings could potentially have the opposite effect by costing you more in profits than you would have paid in commission. Having your C21BB agent’s motivation, knowledge, resources, exposure and negotiation skills working in your favor will assure you that you are getting the most amount of bids and highest offering prices for your property under the current market conditions. We will always provide you with an “Estimated Net Proceeds Sheet” for every asking price and incoming offer so that you can see your bottom line. We keep your best interest in mind and hope to make that number as high as it can be.
If you know that you want quality service, the most for your home, and/or a wonderful selling experience, a full-service brokerage is a good way to go. Ask us about how we can help you get the most out of your next transaction. The more you get out of it, the happier we are in the job we’ve done. We will always strive to show you the best, provide incredible value, and make it worth it for you!