Whether you’re looking to buy or sell property, having a real estate agent by your side will make the process much easier. Enlisting the services of a real estate agent however will entail additional costs, and may sometimes lead to expenses that you wish you can cut. Fortunately, you have the option of going for discount real estate agents that can offer you their services for a lesser price.
The decision to hire a discount real estate agent however should not simply be dictated by the money you can save. Of course, there are also things that you give up in exchange for the lower amount of money you’d have to spend. Before making the decision to contact a discount real estate agent to ask for their services, take these pros and cons into mind first and weigh them accordingly.
Pros
Reduced commission and fees
The number one reason people prefer discount real estate agents are the reduced commissions they get and the reduced fees you have to pay. If you’re a seller, you can hire a discount real estate agent without worrying about the amount of money you’d have to give him for commissions.
Because of the reduced commission collected by discount real estate agents, sellers can have a bigger piece of the pie and enjoy more of the profit they gain from selling property. Though the percentage differential from 3 percent to 1 percent for the commission may seem minimal, it can actually be equivalent to a considerable sum of money when taken from the actual sale price of a property.
On the other hand, buyers need not worry about exorbitant fees from discount real estate agents and can put all their money where it actually needs to be – in buying the property.
You get to enjoy the same basic services
Opting for a discount real estate agent may seem like you’re giving up a lot of quality, but the truth is that they offer the same basic services that traditional real estate agents do.
For a fraction of the price you have to pay a traditional real estate agent, a discount real estate agent can get you all the essential services that you need. This generally includes helping you find leads for buyers or sellers, keeping you up to date on what’s happening in the industry, and arranging meetings with interested parties.
Buyer rebates
Those who are looking to buy real estate can benefit greatly from discount real estate agents who offer buyer rebates. Basically, discount real estate agents give a portion of their commission to the buyer, and this amount may be a fixed flat rate or may be a percentage based on the purchase price of the property.
By opting for a discount real estate agent, you not only save on expenses through reduced fees, you also save more through rebates which you can use to purchase furniture for your property or for improvements. This will enable you to have much more leeway on your budget and may even help you purchase better real estate once you’ve taken into consideration how much you can save.
Cons
Expertise
Discount real estate agents are generally jobs occupied by people who are new to the business, which means that they have less experience than traditional real estate agents.
Even though discount real estate agents are meant to save you money, it doesn’t mean that the money you nonetheless spend shouldn’t be worth every penny. A low level of experience does not necessarily mean that you’d have subpar service, but it does mean that you should be more judicious when vetting potential agents and make sure that your discount real estate agent is competent.
You should also expect discount real estate agents to have lower response rates than traditional real estate agents. Because of the appeal that saving money brings, discount real estate agents generally juggle more clients at once than traditional real estate agents, which means that they’d have less time to devote solely to you.
No personalized service
Sometimes, the basic services that real estate agents offer aren’t enough. You might be a seller who’s looking to sell a house and want to paint your property in the best possible light, but the best that your discount real estate agent can do is put up a listing for your property or host a bland open house. This may leave you wanting more especially if you don’t want to burden yourself with additional responsibilities that will help you achieve your goals.
On the other hand, since traditional real estate agents have more expertise and more time to give to you, you can expect to receive top-notch service that is specifically tailored to your needs. This may include professional photography and writing high-quality copy for property descriptions.
Limited contract flexibility
Discount real estate agent contracts are often rigid and non-negotiable. This may mean that you won’t have the room to wiggle out additional discounts or bonuses outside from what they have to offer. Basically, when you opt for a discount real estate agent, what you see is what you get.
While it is indeed possible for the basic package that discount real estate agents offer to satisfy your needs, it may sometimes be not enough for you to be truly able to achieve your vision. This is unlike with traditional real estate agents who offer flexibility and may make the necessary adjustments to fit your particular circumstances. Traditional real estate agents like those at 100commissionrealestate.com will take the time to listen to what you truly need and will make the proper changes and even give you additional perks that discount real estate agents just can’t.
Bottom Line
Hiring a discount real estate agent may seem like a deal, and in some cases it may be. For a fraction of the price, you’d be able to enjoy the essential services that traditional real estate agents offer and you won’t have to worry that much about your budget.
The tradeoff for the money you save may be negligible for some, but other sellers or buyers may feel like they’re giving up too much for the money that they can save. At the end of the day, whether or not you opt for a discount real estate agent should be a decision that is not just aligned with your finances, but also with your overall goals and vision.
It’s likewise essential to be discerning when looking for a discount real estate agent, and compare what they bring to the table with that of others. Real estate agents, whether traditional or discount, work in a competitive industry, and it’s up to you to make sure that you get the best possible services for your money.
