CAN I SAVE MONEY BY USING A “DISCOUNT AGENT” FOR MY HOME SALE?

That depends on how you define “saving money”. 

The Discount Service Agent will charge you a lower services fee (commission).  So yes,  you can “save money” this way.  BUT, most of the time you will be looking at a NET LOSS in dollars to you for this sale verses a transaction where you chose to have full professional representation services.   And, depending upon the market climate (especially if we are in a market favoring Buyers), the TIME it takes to sell will usually be longer.

What is meant by Discount-Service and how does this affect the dollars a Seller receives? 

Real Estate service is a business.  It is commission-driven.  Listings in our Arizona MLS system show the fee amount (normally a percentage of the property sales price) to be paid from the sale-proceeds to the office that represents the Buyer and brings in an accepted / completed Buyer-contract.   If your MLS listing shows a discount or lower fee to the Buyer-side, how will Buyer-Agents feel about showing your property? 

A Discount Agent makes his or her dollars through VOLUME-- large numbers of clients with minimum service for each.  If a Discount Agent can hang a sign in front of your house and receive Buyer calls, and be paid MORE through the MLS by finding other homes for Buyers than for selling your house, where will that Agent's business loyalty and transaction time be centered? 

A “discount” or lower fee can be charged on the Seller-side if there is minimal or no Agent-time spent handling the details of your sale after a Buyer has been found.  You won’t know this until too late!

Two-thirds of my work for you takes place AFTER the Buyer is located. 

You may be offered an “EXCLUSIVE” listing by a Discount Agent.  What does this mean for you, as a Seller?  With an Exclusive Listing the Discount Agent will be working to obtain the commission dollars from both sides of the transaction.  There will be a sign in front of your house with “exclusive” on it.  That sign tells all other realtors “you are NOT WELCOME and you will NOT BE PAID for bringing in a Buyer”.  There will be no entry into the MLS because there is no commission being offered to an outside Agent.  This also means no internet exposure through normal real estate sites like “realtor.com”  

With an “excusive listing”, YOUR LISTING WILL NOT HAVE THE CHANCE FOR COMPETITIVE OFFERS from MULTIPLE BUYERS. 

So how does your house with the “exclusive” sign on it get sold?  Maybe a public open house?  Open houses are a wonderful business-development tool for the Realtor sitting there.  They bring in the neighbors who may be looking for an Agent to list with;  they bring in street traffic who may / may not be legitimately looking to purchase something somewhere.  Do they bring in prospective Buyers?  Often.  For YOUR property?  Sometimes.  In your property’s price range?  Rarely but occasionally.  Do they provide business prospects for the Agent holding the property “open”?  Oh yes!  Who does this benefit?

So how does your house with the “exclusive” sign on it get sold?  Maybe a drive-buy sign call?  This has potential, especially if you are located where there is lots of traffic.   But that caller has to be able to phone-connect with your volume-producing listing agent ONLY as no other Agent can be of help.   And if that drive-by potential Buyer has their own Agent, whoops!  There is no pay to an outside Buyer’s Agent for showing & selling your property, remember?

A frequent way the Buyer is found for an “exclusive” listing is through Agent advertising.  Your property, of course, will need to be PRICED BELOW MARKET in order to attract calls, as the only Agent who can market and show it will be your Discount Agent. 

When you list with me I will be providing you with a full-service package.  I do not take “exclusive listings”.  I do not “discount” my fee for you because I work hard for each Seller from the start of marketing all the way through to the close of escrow.  And my full service work on your behalf  will NET YOU THE MOST POSSIBLE DOLLARS IN THE SHORTEST POSSIBLE TIME for your property sale.     

Results That Count!   Liz Pickett