Are you really receiving a discount in the end?
There are many tempting ads out there for discounted or even FREE real estate listing services. Everything from “1%” or “3% total listing commission” to “Pay No Commission…because we’ll Buy it Cash”. They all sound wonderful on the surface (or in the ad).
While you may be tempted to “Save Thousands in real estate commissions”, lets look at the whole picture.
Do they work for Free?
All businesses have costs to keep their doors open and/or support themselves and their families. I can almost guarantee you that no one is doing it out of the goodness of their heart. Note; I say “almost”, because someone will come along and do it, then sue me for my statement. 🙂 There are phones to be paid, car payments and insurance, business licenses/permits/dues to be paid, computers/office equipment, legal contracts and that luring advertising. So, no matter who it is, they’re making thousands of dollars on the sale of your home.
There are training ads, similar to this one, to teach some agents how to get money out of sales….
Plus, there is a plethora of other training courses to help inadequate agents, bilk unsuspecting sellers (and buyers).
Beware of the Hidden Fees
In order to make a living, most of these discount service providers make it up in other ways. Some agents require you to use their service providers in your transaction. These providers may be charging way more than normal service providers, in order to compensate the agent for the referral. Some agents charge additional fees, like Transaction Coordinators or assistance, to do the work that is expected of (and normally provided by) your Realtor.
If they are so willing to give away their money up front, how hard are they going to fight for your money?
We’ll Pay Cash
Profit margins are also figured into purchases by companies who say: “you’ll pay no commission”, “close quicker”, “no hassle”, “no showings”, “no keeping the house clean”. How can they do this, you ask? Most will pay you far less than than your home is worth. Then still charge you transaction or processing fees.
Please do your homework. If you think one of these non-traditional transactions is for you, dig deep. Ask for all fees to be laid out, disclosed and agreed to up front, before you sign any listings. Ask for at least 3 service providers for each of the areas of ancillary transaction services. As a Realtor with 27 years of experiences helping sellers/buyers and training agents to handle transactions the proper way, I’ve seen a lot of hokey things. A great Realtor is a professional (like a doctor or a lawyer), well trained and experienced to get you the most amount of money for one of the biggest investments you may ever have.
I’m Scott Stephens and I’m here to Help. (714) 801-6230