On a fairly regular basis I find myself competing for a listing with a “discount” broker — one whose fee is 4% or so, as compared to the 5% that I, and most full-service agents in this market, charge.
What I share with my potential clients is that in my experience, these discount brokers simply take a few photos of the property (often REALLY bad ones), post the listing to MLS, throw a lockbox on the door so that they don’t have to actually accompany any showings and call it a day. And generally people understand that this is not an ideal strategy for selling their home, and appreciate the marketing and sales services that I offer. However, there have been a few times that I have lost listings to agents who offered a cut-rate fee and/or “bought” the listing by coming in with a ridiculously high list price instead of one that will realistically move the property in a reasonable timeframe.
So I was thrilled to discover Justin Rollo’s recent Boston.com piece looking at the financial implications of listing a property with a discount broker compared to a full-service agent. The results are no surprise to me, but the data is very interesting. I encourage anyone thinking of selling their home to read Justin’s article, “Is a Discount Broker Really a Bargain.”