Discounted real estate agents: Debunking the Myth
Monday Oct 19th, 2020Share
There’s no doubt about it, selling a home in todays hot housing market can be very expensive.
With the average home price around $700,000, you could expect to pay anywhere between $35,000 to $40,000. This number includes closing costs such as preparing the house for sale, legal fees, staging and the real estate fees.
Today, the industry standard to sell your home is 5% which is split between the buyer and seller agents. Asking for a discount from a traditional agent is an option but most traditional real estate agents frown upon this.
However, this is where the discount real estate agent comes in. A good discount agent will list your home for 1% and then offer the buyers agent 2.5% to ensure your house will get showings. Offering to list your home for 3.5% total instead of 5% will save you thousands of dollars!!! In the above example of a listing price of $700,000 the savings would be calculated at $700,000 x ( 5%-3.5%=1.5% ) = $10,500 plus HST.
There is a myth out there which we need to debunk. Listing with a real estate agent who discounts doesn’t always mean discounted service. In fact, I for one offer FULL Service to all my clients and have been doing so for over 12 years.
The key is to find a good discount realtor, and there are plenty of them. Just because a realtor charges you 5% doesn’t mean you are getting better service or that your house will sell for more. That is simply not true. A good discount real estate agent will do a comparative market analysis, market your home through advertising, social media, list on the MLS and thousands of internet website portals, take professional pictures, do virtual tours, open houses etc. The same service you would expect from a traditional real estate agent.
But how can we charge less….easy. Technology has changed over the years which makes it easier to market your home through the internet and social media outlets. Yet, despite all the progress in technology, in the world of real estate in this country the “old way” of charging 5% or more to list a property is unfortunately still the majority. It can be done for less commission without sacrificing service or results!!
Now, not all discount real estate agents offer full service just like not all traditional real estate agents offer Full Service. The key is find someone that will offer what you are looking for and what you are willing to pay.
Using a real estate agent to represent you when listing your home in my opinion is very important. You want someone experienced, someone who has your best interests in mind and one that will negotiate the best price for your home. This can be done just as well with a discounted real estate agent as it can be done with a traditional agent. The choice is up to you.
For more information on my services please visit my website paulmccormick.ca or call me at 905 409 7999. Paul McCormick is a Sales Representative with Century 21 Wenda Allen Ltd.