Should you hire a discount Broker? Will the services be discounted too? Most full priced commission agents, typically 6%, would have you believe the old adage "you get what you pay for". However, there are a number of us who, due to new brokerage models, enable us to offer lower commissions and still earn a good wage.
The new brokerage model charges agents a small flat fee vs. a 50% split of 3% commission standard model. This puts us in a position to pass along our savings as agents, to you the consumer. Example;
Typical commission is 6% of the sales price. The commission gets split between the listing agent, and the buyer's agent. 3% to each. Now that 3% gets split between the agent and his broker. These splits range from 50/50 to 90/10 and after a hefty 8% is taken off the top for franchise fees.
Now the new brokerage model only charges the agent around $695, and the rest the agent puts in his pocket. This enables the agent to be as negotiable as he wants to be with his commission. And have more money in his pocket to use to market your home, put more gas in his car to show homes, and help clients with closing costs, or needed home repairs.
So don't worry about a discount real estate agent. They may even be more capable of providing a full range of services due to their increase in income.
Buyers are out in droves which is shrinking the inventory and raising the prices. Don't look back wishing you hadn't waited so long to get off the fence. This historically perfect storm; low prices plus low interest rates may never repeat itself for years to come. Get prequalified, find an experienced agent and get busy!
