Discount Real Estate

Tips for Selling Your Home

How Discount Real Estate Services Can Add to Your Bottom Line

When it's time to sell your home or property you'll want to consider that the largest expense associated with the sale in usually the real estate commission. Traditionally real estate brokers charge 5-7% of the gross sales prices of your property for their services to market and sell real estate. While 6% may not seem like a lot, it usually represents a fairly large portion of your property's equity (the amount you keep after all of the expenses and mortgage payoffs have been paid.) It's generally a good idea to explore alternative routes to selling your home.

According to the Federal Trade Commission (FTC), "Non-traditional real estate brokers often offer many of the same services as full-service brokers, but on an a la carte basis, at a reduced commission rate, or for a flat fee. You may be able to pick and pay for only the services you want. If you choose more limited services, it means that you may have to do more of the work yourself to help sell your home. For example, some non-traditional brokers offer an MLS-only package, which includes listing the property on the local MLS for a flat fee: you would be responsible for every other aspect of the transaction, like advertising, running open houses, negotiating with buyers, and coordinating the closing"

Depending upon how much work you're willing to do and how much experience you have had selling previously you can save a tremendous amount of money using a discount real estate broker or salesperson. Discount real estate brokers come in several varieties so you'll want to be sure of exactly what services you'll be getting for your money. Her's a list of questions prepared by the FTC you can ask your broker before you decide to sell:

How many homes did you sell in the past year? Finding out what types of properties, how many units, and where brokers have sold can help determine how efficiently they’re operating and how much experience they have.
What is your commission? Real estate commissions are negotiable. They are neither fixed by law nor by any local real estate associations (at 6 percent or any other level). The rate could be a percentage of the final sale price of the property, an hourly fee, or a flat fee. The payment could be up front, or when the property is sold. As you interview real estate professionals, keep two things about fees in mind: a traditional full-service broker generally charges more than a nontraditional broker, and if you hire a nontraditional broker, you can expect to pay higher fees if you purchase more services.
What share of the total commission should I offer to another broker who finds the buyer? Your broker should be able to recommend that.
How will you market my home? Ask whether the broker plans to rely on the MLS alone, or use it in combination with newspaper ads, open houses, or other promotions. Will the home be visible on popular websites?
Will you help the buyer get financing? You also may want to discuss any seller-financing options you could offer to attract buyers.
Can you provide a list of references? The broker should be able to give you the names, addresses, and phone numbers of clients whose homes have recently sold. Ask each client how long their home was on the market, whether they were satisfied with the broker, and why. Ask if they have any tips for you – or lessons learned to share.