When it comes to selling a house, the variety of methods a home seller can choose from is enough to leave you overwhelmed and lost. From for sale by owner websites, MLS flat fee listing companies, traditional real estate brokers to discount brokerages and iBuyers, and the list are longer than you think.
On one side having options to choose from is a blessing in disguise, on the other end, choosing the wrong one to sell your house could turn the whole experience into a complete nightmare.
If you’re planning to sell your house soon and are the sort of person who does a lot of research before making a significant choice, you probably are left with 2 options that will work the best for you:
- discount brokerage firms
- National Brokerage firms
Little More about Discount Brokerage Firms
A discount brokerage firm typically connects sellers with agents who are willing to accept lower commissions in exchange for a larger volume of clients over the internet.
So instead of the 2.5–3% listing fee charged by most traditional realtors, some of these discount brokerage firms charge as little as 1% or charge a flat fee.
Advantages of Discount Real Estate Firms
Pocket-Friendly Option
When you’re looking to work with an independent agent, a discount broker may be the most cost-effective solution. Low commission fees and expenses can make or break an investment. Discount brokers are usually less expensive than full-service brokerage firms for investors. While standard brokers usually charge at least 3%, discount brokers can charge as low as 1%.
Bare Basic Services
For the amount of money you pay discount brokerage firms, they offer the basic version of the services that most the national brokerage firms offer. From listing on the Flat fee MLS to competitive pricing consultations and advertising, it’s worth the money spent.
Disadvantages of Discount Real Estate Firms
Not for Beginners
If you are a rookie investor with no experience or knowledge in investing, a discount broker may not be the best solution for you. If you are a rich customer who wants highly specialized services, a low-cost broker may not be perfect for you unless you engage with a financial adviser who handles client assets there.
Confusing Options
Discount brokers vary widely in terms of their prices, the products they provide, the types of accounts they offer, and the services they provide. Conduct your investigation before selecting a discount broker or whether this is the ideal solution.
Lack of Personal Attention
With the number of clients they handle at the same time, they may not be available at your beck and call.
Non-Negotiable Commissions
There is no room for negotiations when it comes to commissions or their flat fee charges. You get what you pay for.
Little More about National Brokerage Firms
A national brokerage has offices all across the country. Brokerage organizations such as RE/MAX, Coldwell Banker, and Keller Williams handle thousands of transactions every year and have large operations expenditures. To remain competitive, they are generally on the bleeding edge of technology, which benefits agents at a time when technology is assisting in the removal of physical constraints.
One of the major advantages of joining a national brokerage is name recognition. This branding is beneficial for new agents who haven’t yet made a reputation for themselves and helps them grow their business.
Agents with a lot of resources can save money upfront, but the commission split is often a disadvantage. National brokerages offer a better split, especially if you’re new to the market. Consider it a financial trade for knowledge and access to online technologies that make working from home more practical.
Advantages of National Real Estate Firms
Very Resourceful
The team of experts and their registered representatives give personalized assistance to their clients. These services range from making transactions on behalf of customers to managing whole portfolios. These companies have access to a wealth of resources and information that may be used to assist their clients.
Best in Class Service
National brokerage firms, as the name implies, provide investors with a high degree of service. These firms often have significant research departments that provide information to investors on numerous equities and market sectors.
Disadvantages of National Real Estate Firms
Expensive
National brokerage firms are always on the expensive side as compared to the other alternatives. Commissions and transaction expenses for buying and selling properties at these businesses may be significantly higher than those paid by low-cost brokerage services. In addition to transaction fees, brokerage customers may be charged account maintenance fees and other service expenses throughout the year. You maybe get confused in which to buying a house vs a condo, You could get help from the REP Calgary Homes
Brokers’ Have Hidden Agenda
Brokers at national brokerage firms are usually rewarded based on the amount of sales or targets they have achieved every month. Owing to how lucrative this incentive is, they may feel obligated to manipulate their customers to trade or invest in ways that are not necessarily in their best interests or considered legal.
Which Are The Most Reliable Discount Brokerage Firms?
Houzeo
Houzeo offers exceptional value, backed with sophisticated technology, and 5-star customer service. Houzeo is the most competitive and popular marketplace for full-service merchants. These low-cost real estate agencies will save them money while requiring the least amount of engagement with an agent.
The customer dashboard on Houzeo is a more advanced feature that allows you to access a variety of services. You may go through and compare bids, make counteroffers, and schedule showings.
To know more about it, check out Houzeo reviews on leading review websites.
Clever Real Estate
Clever, unlike other brokerages, is entirely online. Clever charges agents a referral fee rather than a lead fee when their agents successfully assist clients purchase or selling a house. Clever costs less than a typical brokerage. Clever Real Estate is a simple, direct, and free method to locate a top-rated local agent.
When consumers submit information to Clever Real Estate, it is shared with real estate brokers in a procedure known as a blind match for an unknown charge. You can go through some Clever Real Estate reviews on leading review websites to get a better understanding of whether their packages and services meets your requirement.
Redfin
Primarily active in US and Canada, Redfin is a very reputed discount brokerage firm utilizing cutting-edge technology to help with house sales. Redfin representatives provide less hands-on support since they use a tech-centric customer care methodology.
You may not receive as much customized attention from your Agent because Redfin staff work with more customers at once than typical realtors. Redfin provides both genuine discounts and is a well-known brand. Sellers pay a 1.5 % listing charge or 1% if they purchase through Redfin.
Which Are The Most Reliable National Brokerage Firms?
eXp Realty
eXp Realty is a renowned real estate firm that provides a broad array of services to both individuals and businesses.
Agents use cutting-edge technology from their cloud-based platform and database system to help their clients find exactly what they need in the shortest amount of time.
As a result, the team does very well in revenue sharing. If your agent does not sell enough properties or is unable to work due to business responsibilities, you will not lose money. These agents provide all of the services that a traditional realtor would, but solely online.
RE/MAX
RE/MAX, formed in 1973, is one of the country’s oldest real estate companies. There’s a strong possibility there’s a RE/MAX representative in your region, with over 100,000 agents in 90 countries and 7,000 local offices.
The firm was founded on the motto of providing agents maximum commission. This means that RE/MAX agent, who closes any sale of property gets to keep almost all of their commissions and they pay their broker a portion of the office expenses, rather than giving them a commissions percentage or brokerage fee on each transaction.
Berkshire Hathaway
Once upon a time a holding company for Buffett’s various businesses, today Berkshire Hathaway is a force to reckon with when buying and selling your property in The United States.
If you’re thinking about selling your house through Berkshire Hathaway, their website in itself is an encyclopedia with a mountain of information for home sellers.
Even if you haven’t signed a contract with one of their brokers, you can still get a free evaluation of your home’s value and a market summary.
Berkshire Hathaway is well-known for its expertise in selling high-end real estate. Their experts are well-trained and willing to assist you in purchasing or selling a one-of-a-kind home.
Which One Is The Right One For You?
If you want to be on the safe side, choose a national brokerage firm. It’s tough to find a discount brokerage firm with a proven track record of success. Selling your house is a serious business, and Realtors that work with full-service brokerages are better equipped to sell your property for the top price due to intensive marketing and networks.
That is not to argue that no one has ever successfully sold a property using the services of a discount brokerage firm like Houzeo which offers flexibility backed by robust technology and at a flat fee. To know more, do check out the Houzeo reviews on Trustpilot, Google, and other websites.