This could be a very simple post - I could easily say "There isn't one!" and be done with it. However, I 
have noticed lately that there still seems to be the misconception among the general public that there is a set commission that a Real Estate agent (whether Realtor® or not) charges to sell your home. There simply isn't which leads to another question....
What are discount brokers? Again, a simple answer - I have never met one.
There are, however, two different types of Real Estate companies. Traditional (Full Service as some like to call themselves) and Limited Service (a more a la carte type menu of services)
Traditional Firms:
•· Market your property to the fullest within the guidelines set forth by their respective company. Such advertising MAY include listing your property in the Multiple Listing Service, Open Houses, internet based advertising, interior and/or exterior flyers for your home, local newspaper ads, email advertising, etc.
•· Full representation* when negotiating contracts, preparing paperwork, working on behalf of the seller, coordinating details of closing such as inspections, appraisals, closing, etc.
•· Marketing materials such as yard signs, websites, etc.
•· Lockbox for your home
•· Some MAY include appointment setting services for showings of your home
By no means is the above list a TOTAL representation of what a Real Estate agent can do for you. It is merely presented to show the difference between the types of companies that are available.
Limited Services Firms:
These firms will generally offer services as "add-ons" to help you to sell your home. They may ask for a fee up front (or may not) and offer you services for individual fees such as:
•· Multiple Listing Service
•· Flyers
•· Representation
•· Contract Negotiations
•· Coordinating Closing
•· Advertising (multiple avenues)
When selling your home there are numerous models available to choose from and one is not better than the other depending on a seller's precise situation. Each scenario garners a unique approach. So, while you may have heard that Real Estate agents charge X% to sell your home - it is simply not true.
So, if the end result is ultimately the same - GET YOUR HOUSE SOLD - then the burden rests with the consumer to do their homework and interview many Real Estate agents before trusting one of their biggest transactions to another. Interview Real Estate agents from both fields - Limited Service and Full Service - choose the agent with whom you are comfortable and feel you can trust, confide in and will serve your best interests. Again, each seller is different, each Real Estate firm is different. This is a service based field - as with any other service oriented company there is a broad range of prices for services to pay as well as services offered.
I, in no way, mean to cheapen MY profession but one analogy that comes to mind is servicing my car. I can take my car to the dealer to have services performed. When I leave my car has been washed, I have a flower on my dashboard, the car has been vacuumed and I have had free doughnuts and coffee while waiting. That's if I chose to wait or I could be shuttled to where I need to go until my car is done. OR I
can take my car to the local mechanic who I trust and have the same work done by someone that I know and have confidence in. No flower, no coffee and doughnuts, no car wash and vacuum. The same quality work was performed, the same diagnostics were done and I was somewhere that they knew me, cared about me and my circumstances and I was comfortable. You can put all the frills on a service but that doesn't guarantee the quality or professionalism.
I hope that you find this information helpful and should you have any questions regarding selling your home you can feel comfortable calling or emailing me any time - I love to answer questions about what I do! And, remember, don't let anyone bully you into thinking that one is better than the other - it all depends on your situation. It may come as a surprise to you after reading this post but I am a Full Service Firm.
Just a little consumer information from My Back Yard....
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Welcome to Wake Forest NC!
Live, Love, Work and Play...
And the Surrounding Towns and Cities of Youngsville, Franklinton, Creedmoor, Raleigh, Oxford, Louisburg, Knightdale, Wendell, Garner, Cary, Apex & Holly Springs
Leesa Finley the "Wake Forest NC House Chick"
Circa Properties
919-649-6128
To Search for Homes for Sale in Wake Forest NC please visit
www.LeesaFinley.com
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I really liked this post and you said it in a nice way. Thanks
Great overview Leesa of you get what you pay for. Some sellers push to have FULL SERVICE at discount rates. Realtors must understand they are in business not to lose money and walk from those clients, or educate them and get paid what they are worth.
You get what you pay for...If an agent can't justify and negotiate their commission, then how will they negotate the best sale on your home.....Cheep is Cheep. In a soft market a seller needs every advantage they can get to achieve a sale 1 or 2 percent is nothing in the bigger picture
Charlie - Thanks for your comment - I appreciate it!
Gary - What constitues discount since there isn't a set rate? (If you are speaking in terms of full service)
Karl - When comparing a limited service to a full service then yes, you get what you pay for and that would seem to be the reasoning behing the model of a limited service firm.
this is the first point of view that i really agree with when it comes to commissions and "discount brokders" it is up to the consumer, and I think if we all thought this way then there would be no more debating on who is better... that is the wrong question, it should be "who is better for the customer and their specific needs" great post!!
It's important that consumers understand what they are paying for.
Will Nesbitt
http://www.condo1alexandria.com
Danielle - THANK YOU SO MUCH for getting my vibe! You got exactly where I was coming from. "Who is better for the consumer and their specific needs" You said it all!
Will - So true - the consumer should certainly interview several firms to see what they have to offer and which will be better for them.
Leesa, this is a great blog and it was explained very well. We liked the analogy that you used.
Patty and Scott - Thank you! It was my goal NOT to diminish what any one firm did over another but to illustrate that there is room for all models. And also to re-emphasize to the consumer that there is NOT a set commission rate.
Leesa...
There is room for all and the consumer should be informed before seeking services from an agent. Well done.
Richard - Thanks - they just need to be sure and asks questions!
Leesa - I've heard this question asked many times. Thank you for a VERY informative post, with solid answers to these questions.
Penny - Thanks! I hear this question asked by many consumers, too - just thought it was time for me to let people interested know that there isn't one - period.
Month ago I was searching a site where I could sell my house. I found really great site. It was called Fizber. There were great services. You can find them here http://www.fizber.com/sale-by-owner-home-services/index.htm.
Leesa -- Excellent post, darling! Very well said...and I applaud you.
I prefer FSBO sites, but not real estate agency. Agents take commissions and it is cheaper that money to sell your property at FSBO site. I saw many sites, but I think Fizber was the best. There are many services that can help sellers and buyers like real estate forms at http://www.fizber.com/real-estate-forms.htm for sellers or http://schools.fizber.com/ for buyers.
Leesa!!! What a wonderful post! I haven't seen or heard from you lately and now I know why! You're a professional NOW. I am VERY impressed with your writing style, knowledge and chutzpah!
That new picture revealed the real you - fabulous. anna'nanna