We get it, real estate in Denver is expensive. With average home prices reaching new records monthly, discount brokerages are popping up faster than you can pound in the For Sale sign. These brokerages offer their services for a lower percentage than full-service brokerages or for an up front fee. They are capitalizing on a fast-moving market by offering less-than-full service for lower fees.
By all means, investigate every option when selecting your Denver real estate agent but don't forget that you get what you pay for! Not only is buying a home utterly intimate, it is also likely one of the most important financial investments you'll ever make. So, consider investing in high quality service as you buy and/or sell a home.
Full service agent- A Realtor, selected by you. This individual earns a percentage of your home sale, creating intrinsic motivation and synergy between agent and client.
Discount or flat fee agent- This may be an assigned individual or a team of agents who work at a reduced price in order to minimize the amount you spend on a broker.
What you should know about discount real estate brokerages:
1.Full-service agents take care of your sale or purchase from start to finish. Discount agents don't.
Discount brokerages cut costs by either utilizing one real estate team to accommodate all home sales and purchases or by selecting an agent with the lowest commission bid to cover clients. While a full service agent is hand-picked by you and will walk you through your entire real estate journey, you may be passed from hand to hand at a discount brokerage. A full service Realtor will get to know you and exactly what you're looking for, while a discount broker often treats all clients similarly in order to streamline their process - thus, saving themselves money.
2. Discount agents often work 9-5, Monday through Friday. Full-service agents are available when you need them and don't expect you to work around their schedules.
It's a fact that a lot of real estate action happens on evenings and weekends. It just makes sense; most home sellers and buyers are available after work or on their days off. A good full-service agent will be at your beck and call, no matter the day or time. Discount brokers make less money and typically limit their availability hours, often leaving clients in a lurch or missing a timely offer.
3. Full-service agents work their tails off to sell your home for top dollar and to negotiate for home buyers. Flat fee agents don't have the same incentive
Negotiation is the true art of real estate and full-service agents pride themselves on negotiating fair deals and avoiding stressful situations for their clients. Discount brokers, on the other hand, pride themselves on moving their clients through the buying and selling processes systematically and without added effort.
4. Your property will be marketed very differently.
Full-service agents spend a lot of time marketing your property, if you're selling. They often meticulously maintain a contact database, invest in print and digital advertisements across many platforms, hold customized open houses, and may even pay to have your home staged. Discount and flat rate agents do the bare minimum - post your listing to the MLS and to a social media page or two. Remember, you get what you pay for!
5. The final sale price of your home or purchase price of a future home may be greatly impacted.
Full-service Realtors put their all into every single transaction, customizing the process for each client, marketing your property like a pro and negotiating like crazy. All this hard work translates to fewer days on market for home sales and better deals for home purchases. If it's all about the money, consider the entire gamut of factors before selecting a discount brokerage.
If saving money on the cost of your agent still tops your list of importance, take a look at what area discount brokerages offer. But first, consider what you'll be missing. That extra investment in a full-service Realtor could mean a better negotiated sale or purchase and will very likely mean a more enjoyable home selling and/or buying experience. Think of a full-service agent like a custom tailored suit, made just for you with the utmost care. A discount agent is more like a suit on the sale rack the title discount broker says it all.
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