Whats the deal with discount brokerages?

So there are two types of discount brokerages. First there are the types which benefit the agent by taking an abnormally small cut of their commissions. This allows agents to charge whatever they want and pocket most of the commission. So if the agent sells a home they might only have to pay their company $299 rather than a large percentage of their income.

The second type of discount brokerage gives the seller a reduced comission rate. We will focus on the second type. Nationally most agents and brokerages charge about 6% to sell a home for a customer. That is the normal cost to market the home and pay the wage of a professional listing agent. We believe that this will give you the best chance to walk with the most money in your pocket after closing. Alternatively some sellers are looking for higher quality at a lower price. In response we have agents and firms who specialize in the discount listing. They offer to sell the home at say 4 or 5%. In order to cut costs these firms often eliminate the responsibility of the listing agent to return calls and schedule appointments. All inquiries are directed to the sellers personal phone or email. The marketing may be done by an unskilled temp worker. Offers may be delayed in delivery. This is not the best way to sell a home.

The best way is for a full time professional to deal promptly with every prospect on the sellers behalf. This job requires speed, precision, experience and dilligence. The professional agent will keep the seller protected from all public inquiry.