An AP feature in the Tribune discusses the growing popularity of discount brokers. Many new realty firms will charge substatially lower fees to list a home in the MLS, run advertising, and schedule showings. They often offer more services like negotiation as a la carte options. The savings can be significant, sometimes over four percent of the sale price.
Obviously, as agents for a full-service brokerage like Coldwell Banker, we have a bias. But we welcome such discount providers to the market. The competition forces us to work harder to provide value. Consumers already make substantial use of the internet during the home buying process, and some may feel comfortable handling the transaction on their own or with minimal assistance. The choice is up to you, but as with any product or service, you get what you pay for. Discount brokers usually only advertise your property, and may help you schedule showings. But the seller is usually responsible for researching the market to set an asking price, hosting showings and open houses, conducting negotiations, coordinating inspections and attorney reviews, and preparing documentation for the title company.
A helpful analogy to consider is that of a person who knows how to repair his own car. He can save money by not taking it to a mechanic, but he has to be willing to invest his own time and resources in doing so. If this trade off is justified in his mind, then he should do the work himself. But many people don’t know how to repair their cars, so they hire someone else to do the work for them. Many people may be comfortable handling the bulk of the work in selling their home in order to save on commissions, but others prefer to pay someone else to do all the work. We feel that our knowledge of the market, skill in handling the transaction, and hard work are worth the additional cost.
