There exist two real estate business marketing models when you want to place your home on the market with a licensed Realtor. Hiring a full service real estate agent who will charge a typical commission of six percent or a discount brokerage that charges a lower amount to represent your real estate interests as a home seller.
The proponents of discount brokerages want the homeowner to believe that they will receive the same level of service from a discount brokerage as they would hiring a full service real estate brokerage. Honestly, in your gut, do you truly believe the discount brokerage or agent will invest the same amount of time and money marketing your home as a full service agent?
Have you ever thought about the expenses and time investment needed to effectively market your home so it sells for top dollar in a timely manner?
Statistically, the top agents that have the highest volume in sales each year are not discounting their services because of THEIR investment in your success.
They like I, are paying for photographers, online marketing, open house expenses, staging if needed, transaction staff and other related marketing expenses. And in fact, I am investing in your home in advance of the sale because I know as a real estate professional, you expect the best possible representation of your home. I do not make up my expenses until your home sells. I might equate this with the attorney who fronts the time and costs of a lawsuit and is only rewarded if the suit is successful except we are not charging 40% to represent you.
When we place your home on the market, we enter your property into the local MLS which notifies all of the thousands of Realtors in Las Vegas that your home is for sale. So in addition to our personal marketing we are allowing thousands of agent the opportunity to find buyers for your house. These buyers agents are expecting a 3% commission. If we were a discount broker restricting their livelihood the thousands of agent in Las Vegas and Henderson would be less apt to find a buyer for your home.
How Do Discount Brokers Operate?
In Las Vegas for example, the traditional brokerage fees are as high as 7% of the sales price. The average co-brokering fee, the fee paid to selling agents who bring your buyer is often as low as 3%. So those listing agents make a lot more money than selling agents.
Here are examples:
Flat-fee listing policies. This brokerage takes listings at typically a flat rate, paying a cooperating percentage fee on top of that amount to selling brokers. That cooperating fee is also paid by the seller. You might see a brokerage ad offering to list your house at a fee of $2,000. Somewhere in the tiny print, if it’s disclosed at all, will be a disclaimer that this fee is exclusive of the fee paid to the selling broker. This type of advertising is misleading to the consumer.
Small percentage-fee listing policies. Some brokers advertise it will take a listing for 1% or 2%. Again, many of these brokers don’t draw attention to the fact that the selling broker, in most instances, is still paid an additional fee by the seller or the fact the only way they take any money is to sell the property themselves which is a conflict of interest to the seller in many cases.
Buyer commission rebates. You can also find real estate agents who advertise that if you hire one of them to buy a home, the company will credit the buyer a percentage of its commission or a flat-fee at closing. This money comes from the fee the seller pays the broker who presents the buyer.
Generally, a company that elects to give away part of its income to buyers does so in the hopes that it will attract such a huge volume of business that it won’t miss the money. You may or may not receive individualized attention and service due to increasing pressure on these low-profit companies to keep the business coming in the door.
Graduated fee policies. These brokers offer a cornucopia of fees and services, depending on the type of representation and work required. For example, if you think you can sell your home without any assistance from the listing broker, you might be able to work out an arrangement for MLS input only. This means the broker will put your home into the multiple listing service but take no phone calls from agents, will not show your home, nor put a sign in the yard or advertise it elsewhere. Some MLS groups prohibit this practice, but it’s done anyway.
On the other hand, if you want the listing broker to handle increased responsibilities, the fee will go up, but it will still be less than most full-service brokerages charge.
If you are looking to place your home on the market, or you just want an honest opinion on its market value, it is my pledge to you, as a real estate professional to get you the highest value for your home in the shortest period of time.
The more familiar realtors are with the neighborhoods in their area, the better they are able to sell a home. The Dulcie Crawford Group knows Las Vegas, Nevada Real Estate and can help you sell your home quickly at fair market value. Fortunately, the Las Vegas real estate market is definitely on the rise right now, as people discover the community and amenities. If you’re looking to sell in this area, let our real estate agents help you find the most qualified prospective buyers based on your location.
If you are a home buyer, our foremost goal is to provide you with exceptional customer service. Our goals are to help you purchase the right home, make sure you don’t miss out on any homes that meet your needs, and make sure you don’t pay too much for your next home. Please utilize our Las Vegas, Nevada real estate expertise to make your home search and buying experience as stress free and rewarding as possible.
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