The Honest Broker : Discount Real Estate Services
BY: Diane Lott, Broker Paradise Found Realty, Inc
As competition amongst real estate companies increases, there are new advertising gimmicks popping up touting the ability to sell for 1.5-2%. Below are the nation’s top 3 companies offering these so-called rates. But those rates are very deceptive and will bait you to the company, only to find out that you will ultimately pay 4.5-5.0% when all is set and done.
1. Ideal Agent
Ideal Agent is an agent referral service that connects sellers with pre-vetted agents who agree to work for a slightly lower commission. The company advertises a 2% commission, but again, that doesn’t include the standard 2.5%-3% buyer’s agent commission. Ideal Agent customers will almost always pay around 5%, a small 1% discount off the traditional commission. Further, mixed online reviews suggest that Ideal Agents need a stronger screening process to ensure its pairing customers with high-quality agents. Ideal Agent may be a good choice for:
*Sellers who are only looking for a small commission discount
*Sellers who live in dense markets with many higher-quality agents to choose from
Redfin is the largest discount real estate brokerage in the U.S. It offers a listing commission of 1.5%— or 1% if you also buy with the company. In addition to that 1.5% listing fee, Redfin (like most brokers) recommends you offer a competitive buyer’s agent commission. Rates vary, but 2.5-3% is typical nationwide. Redfin agents work for a salary instead of commission, and it uses a team-based model. That means the client will be working with a succession of different Redfin employees as your sale moves along. Redfin isn’t a great fit for sellers who want a personalized, one-on-one relationship with their agent. However, it can be great for sellers who:
*Are planning to also buy with Redfin
*Value the reassurance of working with a huge, national company
*Are comfortable working with a team instead of just one agent
*Buyers who are interested in a cash back offer (available in select markets)
3. REX Homes
REX advertises a 2.5% “total fee,” which it delivers by not offering a buyer’s agent commission or listing your home on the MLS. By removing the buyer’s agent commission and not using the MLS service, REX dramatically reduces your pool of potential buyers, which may make selling your home far more difficult.
In fact, many REX reviewers claim that they eventually had to offer a reasonable buyer’s commission before their home sold. REX isn’t a great fit for sellers who need maximum exposure for their home to achieve a sale and there are few benefits for buyers.
Remember, there is a local company; namely, Paradise Found Realty, that provides their clients with personal, quality, and complete full services for 4.5% with no hidden fees. Don’t settle for less.
Diane Lott, Broker
Owner: Paradise Found Realty
Paradise Found Realty, Inc. of Palm City
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