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WHY SHOULDN'T I USE A DISCOUNT BROKER TO SELL MY HOUSE?

By
Real Estate Agent with Howard Hanna Real Estate Services

"I'm no expert but I'm not paying a full commission when I can pay a discount broker a low flat fee and then pay only the selling agent's side of the commission. I negotiate for a living. Surely I can negotiate something as easy as a home sale."

FSBO Sign

Yeah, right! And because every real estate agent also negotiates for a living they should be able to do your job too?  But seriously, the discount broker arrangement is usually best in a strong seller's market. That of course would not be the current market.

Another name for this is selling by owner or FSBO. A discount brokerage may assign an agent to represent you but you really do get what you pay for and this means you do all of the heavy lifting. Expect minimal agent involvement and expect to pay for most of your own advertising.

FSBO's choose this option to get their property on the M.L.S. with the hope that a buyer's agent will bring them an offer. The seller then pays only one side of the commission. Ideally, the seller hopes they will find a buyer themselves and pay no commission.

Remember, however, that not every seller has the proper temperament to be a FSBO. You know who you are! It's not easy to be objective when it comes to marketing and selling your own home, especially when a buyer criticizes your house or your decor.

You need to be able to talk to a prospective buyer and to not say too much. You need the ability to make a buyer feel comfortable and not feel pressured. Can you handle contract negotiations and will you be able to hold a deal together after a tough home inspection? If you do go the FSBO route, and you do not land a buyer within a few weeks, you should definitely consider hiring a real estate agent. And for heaven's sake don't wait to list until the Spring market ... around the time that the tax credit expires!

Copyright 2010 Mark L. Ostrovsky All Rights Reserved

FIND A HOME: http://markostrovsky.com/

Posted by

Mark & Elly Ostrovsky

Howard Hanna Smythe Cramer

Cellular: 216.577.1156

EMail: EllyandMark@GMail.Com

Website: http://MarkOstrovsky.Com

 

Mark is a licensed attorney in Ohio & in Massachusetts and works with his wife Elly in residential real estate representing buyers and sellers in Cleveland, Ohio's Eastern suburbs. You can search for homes on their website:

FIND A HOME: http://markostrovsky.com/

 

 

Louis Snitkin
Halstead Property - Manhattan, NY
"Results That Will Move You"

The next thing you know, there will be a Home Appendectomy kit on the internet. All it takes is one nightmare transaction for people to realize the added value of a real estate broker. Anyone who truly understands negotiations will always choose a professional as an advocate.

The phrase "Penny wise and pound foolish" always comes to mind.

Jan 09, 2010 03:52 AM
Associate Broker Falmouth MA Cape Cod Heath Coker
https://teamcoker.robertpaul.com - Falmouth, MA
Heath Coker Berkshire Hathaway HS Robert Paul Prop

I have found that the discount brokers are usually just trying to attract business in an area they find very competitive. It is their preferred niche. Many discounters have come and gone in our area because it is too hard to stay in business when you aren't getting paid.

Jan 09, 2010 03:55 AM
Mark L. Ostrovsky
Howard Hanna Real Estate Services - Beachwood, OH
Howard Hanna Real Estate Services

My wife's broker, when my wifeworked in Boston in the 1980's, said that discounters tend to disappear in tough markets. We're seeing that here already in Greater Cleveland. Saavy sellers need all of the help that they can get in a market like this.

Jan 12, 2010 11:38 AM