Today’s home sellers are savvy. They understand the Internet, know how to use technology, and feel that they can accomplish just about anything if armed with the right information – including the sale of their home.
Because of this belief, and the broker’s inability to justify how their value matches the high commissions they charge, some sellers choose to use a Discount Broker or Flat Fee MLS Broker instead of paying a 6% commission. For a flat fee of $500 to $1000, these brokers provide a specific list of limited services, and the seller does the rest.
What Do Discount Brokers Provide?
For years, traditional brokers touted their ability to put a home onto the Multiple Listing Service (MLS). Without access to this database, it is almost impossible to sell a home. For people selling on their own, they were out of luck.
However, as consumers began demanding to pay less for services, a few brokers chose to offer limited services for a flat fee. These limited services included a few of the services that were exclusive to a broker.
Almost all discount brokers will include your property in the MLS database. Additionally, some may offer a few additional services, such as:
- Listing on specific online sites, such as Zillow, Trulia, and Realtor.com
- A website platform with buyer traffic
- Articles, ebooks, and blog posts about selling a home
The price ranges from about $500 to $1,000.
Is This The Whole Price?
Unfortunately, once you pay up to $1,000 for this limited service, you will still have quite a bit of money to spend to get your house sold.
- Marketing materials including brochures, fliers, and signs needed to help others know your home is for sale and what your home has to offer: $250+
- Home staging and photography that allow you to show off your home in the best possible manner: $400+
- Legal paperwork to be sure that contracts are binding and follow all the rules associated with Texas real estate laws: $600+
- Hours and hours of your time spent on marketing, phone calls, showings, negotiations and more since you do not have a broker representing you: 40+ hours
- And more
By the time you add in these other costs and your own hours spent, you can easily triple the cost of the discount broker investment.
Is the Price You Pay Worth It?
The question then becomes, is a discount broker worth what you pay? It is true that paying a discount broker and then the additional fees can be significantly less than paying 6% of the selling price of your home. However, there is an equally true fact that could make you think twice. Statistics from the National Association of Realtors shows that 88% of people who sell their home without the full representation of a listing agent are not successful selling their home.
These home sellers eventually sign with an agent. The money they spent out of their pocket to the discount broker and for additional services is lost forever. They start from scratch with an agent that will get 6% commission.
The reason this happens is that listing agents do far more for their clients than list on the MLS or provide a dedicated website for buyers. Their knowledge and experience has value that can’t be gleaned from a blog post. Nonetheless, 6% is a big price to pay.
A Better Option
What if you were to learn that there is a better option? One that provides you with all the services of a full service broker but without the ridiculously high cost?
Recadia has created a system that does just that. With their flat fee, full service model, Recadia is giving home sellers the full service they need for a successful sale without asking them to overspend.
Recadia’s realtors will provide you with all the services a seller would expect from a traditional broker. Rather than sellers having to print signs and marketing materials, take photos, field phone calls, negotiate and accept offers, and figure out all the legal issues associated with real estate, Recadia does it all and more.
Sellers love this idea because it is easy on them while being fairly priced. Now, instead of spending hours trying to sell their home, they can spend those hours working, enjoying their family and friends, and moving on to the next stage of their life.
To learn more about Recadia’s flat $3,000 fee that includes a full service realtor, read How Recadia’s Flat Fee, Full Service Real Estate Model Can Save You Thousands of Dollars on Real Estate Commissions. Then contact us at (214) 281-8500 before you waste your money and time on a discount broker. We would be happy to help you with your home selling needs.