Discount Real Estate

How to Hire a Discount Real Estate Agent

Can discount real estate can save you thousands in real estate commissions?

In recent years, discount real estate companies have experienced explosive growth all over the United States. Discount real estate brokers provide real estate services at a rate lower than that of the average real estate companies in a given geographic area. Usually, they provide fewer services, however some discount real estate agents perform "full service" real estate for a lower commission or even a flat fee.

When considering hiring a discount real estate agent, it's important to understand their fee structure, exactly what services are offered and how much work, if any, will be required of you, the home seller when using a discount real estate agent or broker. Some discount real estate brokers purport to offer full service (the same services you would get from a traditional broker), but simply charge less. Others, offer limited services or services on "a la carte" basis whereby pay either up front or at closing for just the services you want and need.

You will want to know if the discount realtor is placing your home in the Multiple Listing Service (MLS) and offering to share in the compensation with "buyer agents" who procure a buyer for your home. Some discount brokers do not list homes in the MLS or share compensation with other firms. This will severely restrict the exposure your property has to the market as the MLS is the method by which properties are listed onto REALTOR.com and other national real estate web sites. Properties without MLS exposure generally take longer to sell and will often sell for a lower sales price. Others may offer to list in MLS for an additional fee.

Most importantly when selecting any real estate broker is to determine their track record. Ask for references and, if possible, a report showing just how many homes the discount real estate agent has sold within the past 12 months. With a low rate or lower fees may be enticing, it really won't matter if your home doesn't sell so make sure your agent has a track record for success.

Here are some items you'll want to inquire about before your hire a discount broker.

• What is the fee structure?
• Do they offer flat fee MLS and top website listing?
• Is the fee paid up front or after closing?
• What services are included?
• What services are optional?
• Does the discount agent provide all of the real estate forms and paperwork?
• Will the property be placed in the MLS?
• Will the discount real estate agent be sharing the commission with cooperative agents?
• Who will handle the showings?
• Who will handle the contract preparation?
• Who will handle the contract negotiation?
• Who will handle arranging the home inspections?
• Who will handle inspection negotiations?
• Who will handle management of the transaction until settlement?
• What work or services, if any, will you, the home seller, be required to do or perform?
• Who will be the contact person after the sale?

Also, check out with the Federal Trade Commission (FTC) has to say about "Selling Your Home? Tips for Selecting a Real Estate Professional"

Remember, a home is most people's largest investment. It just makes sense to preserve your home's equity and maximize the return on your investment (ROI). After mortgage payoff, the real estate commission is usually the biggest expense of the sale of a home. Using a discount real estate agent can save you thousands of dollars and greatly increase your ROI on your largest investment vehicle.