Key Takeaways:
- If you're looking to save money, a discount realtor may be a good option.
- If you want someone experienced to handle the negotiation process on your behalf, then a full-service realtor may be a better choice.
- Whichever realty route you choose, ensure that you interview multiple realtors before making a final decision.
- Compare services, licensing, reputation, and prices to find the realtor that's the best fit for you.
- Bonnie L Miller PA, CNE-Exp Realty LLC, offers realty services to customers in North Fort Myers, FL, and the surrounding areas.
When buying or selling a home, one of the most important decisions you will make is which realtor to choose. There are two main types of realtors: full-service and discount. Each has its pros and cons, so deciding which is right for you can be challenging. Bonnie L Miller PA, CNE-Exp Realty LLC, will discuss the pros and cons of each type of realtor so that you can make an informed decision about which is best for your needs.
Full-Service Real Estate Agents
Full-service realtors provide a full range of services to their clients. It includes everything from helping you find the right home to negotiating the best price to handling all the paperwork. Because they provide such comprehensive service, they usually charge a higher commission than discount realtors. However, many feel that the peace of mind and expertise that full-service realtors offer is worth the extra cost.
Pros and Cons of Full-Service Realtors
There are both benefits and detriments to working with a full-service realtor. Some advantages include: having someone experienced to guide you through the process, negotiating on your behalf, and having access to various marketing tools and resources. Some disadvantages include: having to pay a higher commission, feeling like you are not in control of the process, and feeling like you are not getting personalized service.
Discount Real Estate Agents
Discount realtors, on the other hand, typically offer more limited services. They may help you find a home and negotiate a price, but they will not necessarily handle all the paperwork or be there for every step of the process. Because they offer fewer services, discount realtors typically charge a lower commission.
Pros and Cons of Discount Realtors
Some advantages of discount realtors include: saving money on commissions, being more involved in the process, and feeling like you are getting more personalized service. Some disadvantages include: not having as much support throughout the process, not having someone experienced to negotiate on your behalf, and not having access to as many marketing tools and resources.
So, which is right for you? If you are looking for a comprehensive, full-service realtor who will be with you every step of the way, then a full-service realtor is probably your best bet. However, a discount realtor may be a better option if you are comfortable doing some of the work and need some help with the basics. Whichever route you choose, do your research and pick a realtor you feel satisfied with.
Commission Splits Among Discount and Full-Service Agents
Two parties are paid when you decide to sell your property: the seller's and buyer's agents. Although you cannot control what the buyer's agent is paid, you can set how much you pay your agent (as the seller).
When you give a six percent commission to a full-service real estate agent, half of that amount is given to the buyer's agent. The buyer and seller's agents would receive three percent of the home sale value.
When you work with a discount realtor, you might pay only four or five percent of the total selling price. In this situation, three percent generally gets passed on to the buyer's agent and the remaining to the seller's agent instead of both agents taking home a half split of the commission each.
The lower your commission costs, the less work your discount agent will be able to do. They earn only for their limited services instead of making a profit from marketing and servicing your property.
If you want to learn more about discount realtors, click here.
You Can Negotiate With a Full-Service Agent
A commission rate of a full-service agent can sometimes be lower than what the client typically pays. Even if they are giving a discount, they will still provide their complete range of services.
If you use the same agent to sell and buy homes, they may accept a lower commission. Since they are being paid for two services instead of one, this benefits the customer.
Even if you're not using the same agent for both deals, you can negotiate their commission before hiring them. Some agents are often more motivated by winning your business than they are by making money, so they might be okay with accepting fewer fees. If your Realtor has trouble finding clients, they might take a lower rate to get your business. It usually occurs when agents grow their leads and compete in challenging markets.
Please be aware that haggling over commission rates could result negatively. For instance, your Realtor might flat-out refuse a lower rate or feel disrespected and choose to dissolve the professional relationship altogether.
Also, read our blog on getting the best deal on your house.
Should You Choose A Discount Or Full-Service Agent?
A full-service agent is a way to go if you're looking for a safe option. Finding an affordable agency with a stellar sales track record is tough. Selling your home is a big deal. Realtors who work with full-service agencies are better equipped to get top dollar for your property through extensive marketing and networks than those that work only with discount brokers.
Though it's possible to have a sale go through with the help of a discount agent, you're more likely to succeed if you work with someone who doesn't cut corners. If marketing is your forte and you're only looking for an agent to handle the logistics, then working with someone from a discount brokerage might make sense for you.
That's a potential scenario that may turn out well, but most individuals aren't as experienced in real estate marketing as professionals. It's been shown that a top real estate agent can earn up to 6% more for each property purchased and up to 16% more for every home sold as an owner (FSBO). The higher sale price compensates for the discount given by a discount agent.
Need Realty Services in North Fort Myers, FL? No Problem!
Moving to a new home is always stressful, but it doesn't have to be. Bonnie L Miller PA, CNE-Exp Realty LLC, serving North Fort Myers, FL, can help make the process easy and stress-free. We can connect you with utility service providers near you and ensure you settle down in your new North Fort Myers without worrying too much about necessities.
Don't let the move overwhelm you - contact us today for assistance!