Discount Real Estate Brokers
The Pros and the Cons about discount real estate brokers…what you need to know before listing your home in Colorado!
Discount Real Estate Brokers – Low Flat Fees with Full Service
The term “discount real estate brokers” is quickly becoming a household term for those interested in finding an alternative to paying the high cost of the outdated 6% listing commission. It does not matter what type of home you own; even those with luxury homes for sale in the greater Denver area, Colorado Springs, Boulder and Ft Collins are seeking to save money when they sell.
And why not; why would you pay more for something you can pay less for? Why would you not take advantage of an opportunity to pay less and keep more?
Since the idea of discount real estate companies was birthed many rumors have cropped up as well as negative press reporting on the cons of even thinking of selling your home with a flat fee, flat rate or a commission free listing option. As in all things there is some truth in the reports and there is also a great deal of myth.
The biggest myth is the assumption that all discount real estate brokers are the same; claiming that in order for you to save money you will have to settle for limited or no service at all. There has been a lot of bad press stating that all brokers who will list your home at a discounted listing fee do not have your best interest at heart. What you need to know is that not all discount real estate brokers are the same.
The Cons: Don’t settle for less than what you deserve
The actual cost of flat fee or flat rate listings vary from one real estate company to another; as well as who is actually providing your service and how much they pay the cooperating brokers; those agents working with the potential buyers of your home.
Paid hourly employees as opposed to licensed Real Estate Professionals.
Some discount real estate companies may charge you an upfront fee yet have hourly paid employees who will be doing most of the work who act as your direct contact as opposed to a licensed broker who is not always immediately available to you.
Even though having a few licensed brokers on board overseeing many employees doing the basic grunt work may appear to be an acceptable explanation of why they are able to charge you less; it can also create an overload of work causing contact and negotiation delays.
Buyers Brokers may be paid less than the normal coop commission!
With all real estate companies regardless of whether they are discount real estate brokers or not; part of your listing agreement should include your home advertised in the local and other MLS platforms which is then picked up by Realtor.com, Trulia, Zillow and others.
Yet some of these companies only offer the cooperating agents a much smaller commission for their participation as the buyer’s broker and this could cause your home for sale to be black listed simply because the coop agent chooses not to earn less than what they are normally used to.
For instance, if your home was listed for $450, 000 by a company that not only offers you a flat rate but also pays a flat fee to the cooperating buyer’s agent and the home next door that is comparable in every way including the sales price, is listed by a company offering a coop broker his/her normal 2.8% or 3% in Colorado Springs, Ft Collins and Boulder commission; chances are your neighbor’s home will show and sell long before yours.
The reasoning here is not only simple, but too often true. For the same priced house that fits their client’s needs, a cooping broker would most likely choose the home that would pay him/her $12,600 commission as opposed to $3000 or less.
In this case even though you think you are saving money on your commission free listing, chances are if your home is not shown or is the last to be shown; it may end up costing you more in the long run especially if you are locked into a long term listing agreement.
There are also discount real estate brokers, companies, and websites that offer you a low flat fee listing and provide you with an MLS listing, a sign, and a lockbox. Unfortunately for those savings you are given only limited service and are left facing doing the rest of the work yourself.
This could leave you in an extremely vulnerable position with no one to do the actual negotiations or oversee other real estate related documents and regulations that must be met by one selling a home. You could always hire an attorney to do this for you, yet that could end up being a moot point in terms of saving money.
In many states limited service listings where you are basically paying to have a broker place your home on the local MLS service is legal. Yet in Colorado, limited service is prohibited by DORA (Department of Regulatory Agency) if you are paying a discount real estate broker or any other real estate company to list your home; they must provide you with full service despite how much or how little they are charging you. Although limited service is prohibited by law in Colorado, there are still real estate agencies acting in this manner and for the actual service provided to you; you may as well just advertise your home as a for sale by owner (FSBO).
A Discount Real Estate Brokers 3 Step Win Win Combination.
Licensed Experienced Real Estate Brokers
Full Real Estate Listing Service
Coop Brokers earn 2.8% or 3% in Colorado Springs, Ft Collins or Boulder
Despite the activities of some agencies there are other discount real estate brokers who have a proven record of saving their seller’s thousands of dollars while providing full service and also pay the buyer’s broker a 2.8 % or 3% in Colorado Springs, Ft Collins or Boulder.
They take less so you the seller can keep more of your hard earned equity. They are able to do this because even though they provide you with full service; the truth is all real estate agent’s workload is far less today than in was in the old days and transactions are accomplished much faster due to digital technology.
Why would you want to pay for a discounted listing but have to settle for limited service or even face the chance your home may not be shown because the buyer’s agent is paid less?
Why would you pay the costly 6% commission for your listing to help assure you get full service? All you are doing by choosing this option is handing over your savings to an agent; giving away the thousands of dollars that should go in your pocket?
This is especially true if you are in a hot real estate market where the demand is much greater than the supply; like the greater Denver area where homes go under contract within days even in some cases hours once they hit the market.
You can keep more of your equity and still have a licensed experienced broker who will meet with you at your home to explain all the details of a flat fee listing service and how much you will save. You deserve to be served by someone with extensive knowledge of your area using their expertise to create a free market analysis in order to help you make an educated decision in determining a fair price for your home.
Your goal of a successful profitable sale and saving money should always be your broker’s priority as well. You not only deserve but need, an agent that will walk you through every step of the real estate selling process from pre-listing to the closing table. One who also has excellent negotiating skills and experience in all aspects of real estate, including mortgage lending and title insurance.
Colorado Flat Fee Realty, Inc. is the company that has changed the real estate industry by providing genuine discount real estate brokers. This is the company that will save you thousands on the sale of your home and provides you with full service including assuring the showing of your home by paying Coop Brokers a 2.8% commission or 3% in Colorado Springs, Ft Collins or Boulder.
List with one of our discount real estate brokers and you the seller have someone to do all the work while you benefit from paying less to keeps more!
On top of your seller’s savings we can also put money in your pocket if you choose to purchase your next home with Colorado Flat Fee Realty. You can find any home for sale in Colorado and receive cash back * to do with as you wish.
You can calculate your seller’s savings above to the right and then call one of our discount real estate brokers who will go to work for you immediately to save you thousands by listing your home today! 303 300 9660