Should You Hire a Discount Broker?

You can save money by hiring a discount real estate brokerage but are they worth it?

You can save money by hiring a discount real estate brokerage but are they worth it?

Hiring discount real estate brokerages. My response to the latter statement is that you get what you pay for! This has been my favourite  moto in life that I live by.  So where am I going with this? Here’s an example I like to use. If you hire a licenced eletrician to do work for you around the house, you will likely get quality work done that meets local codes and bylaws, hence protecting your investment.  Conversely, you can also hire a handyman to do the electrical work for you. You may get a repair or upgrade from the handyman that isn’t up to code or won’t last or may even create other electrical complications down the road.

The same can be applied to the real estate industry. Sellers for example, think that the best move is to hire a discount brokerage when it comes to selling their home. They do this for the sake of saving money on fee’s and assuming that they will be making more money on the sale of their home. WRONG!

I have seen plenty of brokerages in the Peel region and in the GTA that offer discounted fees for listing your property with them.  Some brokerages will offer a package of $999.00 to list your home with them and they won’t even take commission from you. Others will charge you 0.5% commission to list your home with them as well. At the end of the day, reduced fee’s means reduced services. Let’s use an example to understand this concept further. The brokerage that will charge you $999.00 or 0.5% will list your property on MLS. They will use the existing photo’s on MLS, if any, and then they will negotiate the offer for you, if any come in. THAT’S IT FOLKS!!!! That’s all you get. The latter brokerage will not host an open house for you. The brokerage will not hire a professional photographer for you and create a virtual tour. You can also forget about any sort of print media when it comes to your home. And that important “for sale” sign that should go up on your front lawn, well that’s an extra cost. And not to mention, that brokerage will not go to your neighbourhood and canvass the area by letting them know that your home is up for sale.

I’ve seen this time and time again. The extent of marketing and promotion with discount brokerages is slim to none. The home will linger on the market, the seller will get frustrated and potential buyers will go in and offer a below market price because they see that the home can’t sell. So then out of desperation, the seller accepts a “low ball” offer.  The seller has to accept the “low ball” offer because they have spent a lot of money maintaining the home for the extra months that it took to sell it.

Please take the time to ask your agent questions before hiring them. The answers will absolutely shock you! Pay the extra fee’s and get the quality service that you and your home deserve. After all, your home is the biggest investment that you will ever make.