Does Using a Discount Real Estate Broker Really Save Homeowners Money?

In today's real estate market more homeowners are using discount real estate brokers for help with selling their home. A discount real estate broker is a licensed real estate firm that offers a la cart real estate services at a discounted rate. Sellers are finding that instead of paying 5-7% of the purchase price they can pay less than $1000 and receive the essential services.

Eight-five percent of homes sell because they are listed in the Multiple Listing Service (MLS). The MLS is a computer system that most realtors use to search for potential properties for buyers. Homeowners will be surprised to know that most realtors sell less than 5% of their listings. The homes sell because they have been entered into MLS where they can easily be assessed by other realtors. Most discount real estate brokers offer sellers assistance with getting their homes entered into MLS for a relatively small fee.

Once the home is entered into MLS where it is able to be viewed by all agents that are members of the system the homeowner can host their own open houses, schedule showings and negotiate contracts. Handling this portion of the sales process homeowners can save thousands of dollars.

Home owners should keep in mind that some contracts can only be used be Realtors. These contracts will have the Realtor logo on them. Homeowners who choose to use the internet to search for offers to purchase and disclosures should ensure that they have the rights to use the contract as well as that the contracts thoroughly written and are legal in their perspective state.

If homeowners decide to use discount brokers there are certain things that they need to understand and communicate with the broker. The first thing to remember is the homeowner is responsible for getting everything in writing. It is difficult to prove verbal agreements. This includes contracts between the homeowner and the broker and between the homeowner and potential buyers. Any offers that are submitted should be signed by all parties. The following questions should all be considered:

• Who will supply the lock box and for sale sign for the property?

• Is a fee owed to the listing broker if the property does not sale?

• Who will schedule property showings and follow up with the showing agent for feedback?

• How long will the property be listed in MLS?

• Are there additional costs for changes to the listing such as price decreases or adding/deleting pictures?

• How much of a commission will be owed to the selling agent?

Discount brokers can save homeowners thousands of dollars; however homeowners must make sure they have enough time and knowledge to ensure a smooth transition from listing the property to closing it. Having limited time and real estate knowledge can prove to be more costly than listing the property with a traditional real estate brokerage. The key to saving money with discount brokers is to spend time researching real estate laws in your state and knowing exactly what your broker has committed to do as well as what task become the responsibility of the homeowner.