It takes money even to sell a home; the top expense is paying commission to your real estate agent. While you have to typically pay up to 5% to 6% of your home’s sales price to traditional realtors for their services, online brokerages and discount real estate brokers can help you sell your home for strikingly low fees. You also don’t need to negotiate real estate commissions with them.
Discount real estate brokers are getting popular these days as they help you bypass the high agent commissions while offering you the requisite services. You would require a discount real estate broker to find you a home or list one when you are buying or selling a home. So, it is important that you know about the top discount real estate brokers in the US to make a beneficial real estate transaction.
Who is called a discount broker?
Terms like real estate agents, realtors, and brokers are often used interchangeably but there are certain important distinctions you must know of. Real estate agents or realtors guide you through home buying or selling, while brokers are people who have taken additional training and have licenses that give them the authority to manage real estate agents. Both real estate agents and brokers can work for brokerages, while brokers can even work independently.
Discount real estate brokers use online platforms to connect sellers with real estate agents willing to work at lower commissions in exchange for a larger pool of clients. The payment structure and savings you desire as a home seller depend on the brokerage you decide to work with.
Do I need a real estate person to sell my house?
Generally speaking, using the services of an experienced realtor can fetch you a higher sale amount for your home. Being able to entice multiple bidders to sell your home by relying on an experienced realtor against listing it FSBO is usually a wise decision. Selling a house is a challenging task and a realtor can help you immensely with vetting the buyers, simplifying the laws surrounding a property sale, and negotiating with the buyer’s agent.
Moreover, real estate agents can have access to a large pool of realtors for selling a house, which can attract multiple potential buyers to your house.
How to hire a discount broker that is right for you
You can check if you need a discount broker or not by researching their websites, looking for their reviews, and knowing about the local real estate market yourself.
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The broker must know your local market
In a real estate market that is in demand and where homes sell quickly, you might not be required to do all the marketing offered by a traditional real estate agent to sell your house quickly. Whereas, if you are selling your home in a market where home sellers are competing for homebuyers, working with an agent with adequate time and resources can work in your favor.
Choosing the right discount real estate broker involves asking them questions about their years working in your local market selling properties similar to yours. You can ask the broker about their methods of communication, marketing plan, references, and network with other realtors.
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The discount real estate broker must be a professional who works full-time
Your broker must be available at important times like paying home visits with you for buying a home. You can even choose independent local realtors who have excellent knowledge of their local market over larger real estate companies.
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Find a discount real estate broker that functions in your area
Discount brokerages may function only in select territories. So, you must find out if a brokerage of your liking serves your area. Often national brokerages can be newer to your locality. That is why it is important to find a brokerage with a history of working in your area with properties similar to yours.
You can search for local brokerages online by looking up ‘discount real estate brokers in your location.
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Compare commission rates and payment structures of brokerages
While comparing the discount real estate brokers you like, calculate their charges versus the traditional 5 to 6 percent commission. In case the brokerage charges a flat fee, you’ll need to calculate it with respect to the value of your home. For example, if the value of your house is USD 300,000, the seller agent’s commission comes to USD 7,500. So in this scenario, the flat rate charged by the brokerage must be less than this amount for real savings.
List of top must-know discount real estate brokers in the US
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Houzeo
When thinking of How to list on MLS you can list your house at a discounted rate using Houzeo and save almost half of the agent commission, which can run into thousands of dollars. Also, you can choose among different packages and avail of services like pricing assistance, contract review, professional photography, etc. as a part of the packages. You can access multiple services, view and compare offers, make counteroffers, and schedule showings among other actions using Houzeo’s advanced dashboard. Choose Houzeo for its affordable listing charges, 5-star customer service, and useful add-on features.
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Redfin
You can save big on commissions while accessing most basic services using Redfin. Also, Redfin is well-known and has a wide coverage. However, the listing fees of Redfin are relatively higher—the brokerage charges 1.5% as listing commission. And if you buy a home with Redfin within a year, your listing commission drops to 1%. Hence, you save approximately 20% to 30% on commission fees.
The overall buyer package of Redfin is relatively disappointing as compared to other brokerages because of a slow listing and average customer service.
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HomeLight
HomeLight works with multiple real estate agents to provide a fruitful home selling experience. While the traditional 6% realtor commission still comes with HomeLight, the commission rate is dependent on the agent who can negotiate real estate commission for you. You can choose between limited-service and full-service agents after going through their details. The agent you choose lists your property on the local MLS.
HomeLight does an in-depth analysis of past years before connecting you with an agent and offers basic technology but you get to see many off-market properties and may receive marginal commission savings.
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Ideal Agent
Ideal Agent only employs traditional agents that are screened for experience and quality and negotiate discounted realtor fees for you. Ideal Agent lists your home for a mere 2% commission and it comes with nationwide coverage. With the Ideal Agent model, you get commission savings while still getting a familiar home selling experience.
While the company hires top-notch realtors, the process needs you to talk to the concierge after which you are assigned a realtor, which delays the selling process. Also, if you choose Ideal Agent you have to work with average technology.
Final thoughts
Even when you come across a discount real estate broker that you think is perfect, you must think through it before inking an exclusivity agreement. Even when you have a competent agent, the more agents you have to sell your home the better the odds of the sale going in your favor.
