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Since selling a home is a monumental deal, it’s a good idea to look into the different ways to cut corners when selling your house.
After all, you want to walk away from your selling your house with as much money as possible in your pocket.
Choosing the right agent is critical to a successful listing, so make sure you’re selecting the right one between a full-service and a discount agent.
There’s a big confusion among home sellers when it comes to choosing between national brokerages which operate the traditional way and discount real estate brokerages.
If you’re planning to sell your home soon and are the type of person who does a lot of research before making such a big decision in your life, you’ve probably heard the terms “discount brokers” and “traditional brokers.”
What is the distinction between a discount and a traditional broker? Obviously, one provides a discount.
As the housing market continues to stabilize and more home sellers opt to sell because they are finally approaching or beyond the break-even threshold on their mortgages, an influx of discount real estate brokers is flooding the market.
The present market conditions provide a perfect business model for discount brokers.
If you’re a home seller who is having a hard time deciding on which one should you go for between the 2, then you should probably choose a discount broker.
Why?
Simply because you get a discount and are not liable to pay a 6% commission to the listing agent and the buyer’s agent as well.
Stick around to the end of this article to know more about whether a discount broker is the best choice when it comes to selling your house or not and watch out for the twist awaiting you.
Which Are the Best Discount Real Estate Brokers In The Market?
Redfin
Without the need to sacrifice a lot and a great way to save on commission, Redfin is one of the best companies to go for. It also has a large coverage area and a well-known brand to its advantage. However, Redfin’s listing costs are slightly more than others, but they are among the best in terms of overall client experience.
When it comes to listing fees, Redfin charges 1.5 % which reduces when you buy with a Redfin agent, but Redfin’s entire buyer savings package is very lackluster when compared to other discount brokers.
There’s no doubt that when you sell a property with Redfin, it will be a different experience than working with a typical brokerage.
They have a team-based concept rather than leaving everything at the hands of your agent during the selling process. This increases the efficiency during the selling process, allowing Redfin agents to manage a bigger volume of customers at the same time.
One major drawback of this is that when you are handling multiple customers at the same time, the possibility of mess-ups is high.
Feel free to check Redfin reviews on various review sites to know whether their style of working suits you or not.
Houwzer
Only when it comes to houses worth $1 million or more, Houwzer is an excellent discount real estate broker. They have a flat $5,000 listing cost that gives the largest commission savings of any full-service provider in this pricing range.
Although they help save you up to $25,000 when you sell a house worth $1 million, it’s a better deal as compared to selling with a regular broker.
Their procedure is quite comparable to listing with a traditional agency, so there should be no big service compromises. Just be sure to thoroughly vet your local agents.
The most common complaint from customers is that some sellers had difficulty locating an agent who was familiar with their location and pricing range. Read some Houwzer reviews to know more.
Ideal Agent
Ideal Agent negotiates discounted realtor costs with traditional agents who have been extensively evaluated for quality and expertise. With Ideal Agent, you can locate agents all around the country who will list your house for as little as 2% commission.
This arrangement allows you to lock in commission savings while still receiving a familiar — and proven — home selling experience.
One of the major drawbacks of dealing with Ideal Agent is that they only provide you with one agent in your region, which you can either accept or decline. Take a look at Ideal Agent reviews on other review websites to get a clearer picture.
Prevu
Prevu is a regional discount brokerage company that operates in the Northeast and on the West Coast of the United States.
Their listing package provides a few premium add-ons to the basic services you’d expect from a real estates agent like sponsored social media marketing and a 3D virtual house tour at no additional cost.
They have a listing fee of 1.5% which makes it a company to consider when selling your house with a discounted brokerage firm provided it’s available in your region. Check out Prevu reviews on the top reviews websites to get a better idea.
SimpleShowing
While SimpleShowing’s listing cost is only 1%, it is only operational in a few locations across The United States— mostly in the Southeast part of it.
One of the major things to keep in mind is that the agents at SimpleShowing handle five times the number of consumers that a normal realtor does. If you’re selling a nice house in a hot market, this isn’t always a deal-breaker.
Read some reviews of SimpleShowing to get a better idea of whether their style of functioning suits your requirement or not.
Clever Real Estate
Clever Real Estate is one of the best discount real estate brokers for numerous home sellers. Clever has the lowest commission rate as compared to the others on this list and has a listing fee of $3,000 or 1% of the transaction value.
Another benefit of dealing with Clever is how they generate savings. Clever negotiates lower prices with renowned and established agents at traditional brokerages across the United States. On the other hand they
This seamless method generates tremendous value for a majority of home sellers– you receive all of the services and assistance of a traditional agent for a fraction of the usual fee.
Realtors receive a consistent stream of prospective clients while not having a large marketing expenditure.
As per some customer testimonials, Clever is not upfront with all its charges. For instance, few of the customers were under the impression that a 1% commission also includes closing charges. Read Clever Real Estate reviews on various review websites to get a better understanding of how their services work across The United States and then take a call whether you would like to hire them.
What’s the Gain?
- You’ll pay less for listing costs. While standard brokers typically charge at least 3%, discount brokers may charge as low as 1%.
- You’ll get the same basic services as you would with a typical agent, such as price advice and some basic advertising services.
- Working with a discount broker will also allow you to list your home on the Multiple Listing Service (MLS).
What’s The Pain?
- Traditional agents may give “additional” services like staging, photography, and extensive property listings that a cheap agency cannot.
- Discount agents must manage a large number of clients at the same time, therefore they may not be as available to give you one-on-one insight and assistance.
- Traditional brokers can build unique contracts to meet sellers where they are, perhaps giving for some flexibility on things like commissions, marketing expectations, and so on. Discount brokers, in general, do not have such luxury.
Is It Worth Going For A Discount Broker?
When you want to play it safe, choose a full-service agent. It’s tough to find a discount agent with a proven track record of success. Selling a property is a serious business, and Realtors that work with full-service brokerages are better able to sell your home for the top price due to intensive marketing and networks.
That is not to argue that no one has ever successfully sold a property using a discount agent. Maybe you’re terrific at marketing and only want to pay a discount brokerage agent to handle the paperwork.
That is a potentially profitable situation, but most people aren’t as experienced in real estate marketing as a real estate expert. It has been demonstrated that a top real estate expert can get a 6% greater selling price than a rookie agent and a 16% higher price than selling the house through For Sale by Owner websites.
The increased selling price more than compensates for the commission savings from a discount agency.
Is There A Better Alternative?
Yes, there is.
Selling your home For Sale by Owner (FSBO) will eliminate your listing agent’s charge entirely, allowing you to maximize your commission savings.
Houzeo is an excellent alternative for selling or purchasing a property. It is regarded as one of the best For Sale by Owner websites’ and also a Flat Fee MLS platform, facilitating and simplifying the home-selling process.
Houzeo allows you to pick your own agent and enjoy your custom-made package services. The majority of documents and paperwork are automated and digitized to alleviate the effort of filling out ever-increasing amounts of paperwork. You can check out Houzeo reviews to read how Houzeo is helping all the sellers across the US to sell their houses seamlessly.
Houzeo offers actual discounts with no hidden expenses. You may offer your house For Sale by Owner for as little as $199 for the basic package. You do not have to pay a commission if the buyer does not have an agent.
