Discount Real Estate Agents - Could They Be Worth It?

Discount Real Estate Agents - Could They Be Worth It?

It does not matter if you might be buying or selling real estate, it is usually a good idea to have a real estate agent at your side. A Realtor can easily guide you with the process and ensure that the sale goes well for everybody involved. Today, though, a lot of people try to find discount real estate agents in an attempt to spend less money. The question is, "are discount real estate agents really safe?"

First thing you should know while searching for a real estate agent is that the commission the agent is going to charge you is NOT usually negotiated. A lot of brokers just won't allow their agents to cut their own commission. On the other hand, a few brokers will not only permit agents to cut their commission, they basically encourage it. The amount that they are prepared to negotiate, though, may differ from agent to agent. It is usually advisable to try and save some money but you should not do so at the expense of losing some of the quality along the way. Discount real estate agents are certainly available and you can negotiate a bargain in several areas but you should make certain you have somebody who will work in your corner as well as ensure that the transaction goes well.

The first thing you must do if you are selling a house is have it placed on your local Multiple Listing Service. It is estimated that practically 90% of all home sales in the U.S happen through an MLS listing. Discount real estate agents will definitely be able to list your property for you. However, if that's all they will do then you might as well work with a one-time flat fee MLS service. A flat fee service can save you much more money. On the other hand, if you are looking for more than that, if you need a person who will also be working for you the entire time to help find qualified people to see your home and to get it sold quickly then you need to pay some commission. If you can find a real estate agent that's prepared to cut half their portion of the commission you are in very good shape. A typical commission for the selling real estate agent is 3%. So if you're able to get the realtor to cut their commission by 1.5% then you save yourself thousands of dollars.

If you're purchasing a home your situation is a bit different. Because the buyer isn't the one having to pay the commission you might think a discount real estate agent wouldn't be necessary. However, buyers can also find discount real estate agents that offer part of their commission back to the buyer at closing. If you are purchasing a home and the realtor is happy to give you 1% back at closing you can end up getting a check for several thousand dollars at closing. A few thousand dollars would make a nice house warming gift for anyone.

In either case, if you are buying or selling real estate, discount real estate agents can save you a lot in the end.