Real estate prices continue to soar and with that, traditional commissions being paid to the real estate professionals involved with the purchase or sale of a home continue to rise. If you are the seller, this means your costs increase exponentially depending on the price your home sells for.
Hiring a discount real estate brokerage to sell your home might just be the answer you are looking for. But how does it work? And why should you consider it?
The most obvious reason to use a discount brokerage is to save money when you sell your home. Some brokerages offer a one or two-percent commission structure, while others offer different packages which allow you to select how many services you want the real estate professional to provide. This type of brokerage can still provide all of the services you need, but at a discounted price.
Don’t be fooled into thinking a discount brokerage provides less service or lower quality services than a traditional brokerage. Real Estate professionals at discount brokerages still undergo the same level of education and training as those at higher-priced brokerages. And, they still provide the valuable experience and knowledge needed when selling the biggest asset many people will ever own. Education is ongoing as required by the governing BC Financial Services Authority so each agent is fully up to date on changes to the rules and requirements of providing real estate services to you.
Although the listing fees are lower with a discount realtor, homes still receive the same level of exposure on the MLS ® listing system used across Canada. This means your home can be viewed by countless potential buyers at a reduced rate.
Depending on the brokerage, the buyer’s Agent may still receive their “full” commission. Reducing the Buyers Agent commission discourages agents from bringing their buyer clients to view your home because the financial incentive is no longer there. By keeping the Buyers Agent portion of the commission the same as at a traditional brokerage, the potential buyer’s pool remains large and widespread.
Again, depending on the brokerage, a buyer may be able to receive a portion of the agent’s commission back as an incentive. This can help with closing costs, moving expenses, or even new furniture. The level of cash you receive will depend on the services provided and can be 25% or 50% of the commission paid to the buyer’s agent. If for example, your buyer’s Agent received $10,000 on the purchase of your new home, you could receive either $2,500 or $5,000 as a tax-free incentive to be used for whatever you want.
Discount Realtors and Brokerages offer all of the same services as a traditional brokerage while saving sellers thousands of dollars which can be used to offset other costs associated with moving. As with any Real Estate Agent, ask for references and do your homework to ensure you are getting the services you want, at a price you are satisfied with.