Discount Real Estate in the San Fernando Valley

By
Real Estate Agent with San Fernando Valley - RE/MAX Grand Central

I don't want to mention any names, but I know of one agent who considers himself a discount real estate agent here in the San Fernando Valley.

His site proclaims the huge amount of money you can save by hiring him to sell your home.  For example, he lists a home priced at $400,000 which would cost $24,000 to sell with a traditional 6% listing fee.  His site says he can sell your home for you for only $2,000.

My math isn't very strong but isn't that a discount of his commission of over 90%?  I don't know very many people who like to work at a 90% discount, do you?  Unless you consider yourself the Walmart of real estate, good luck.

Anyways, what he fails to mention is the cost the seller is going to have to pay the buyer's agent to show the home.  Even though commissions are not fixed and always negotiable, there are agents who won't even show a home which pays less than 2.5% of the listing price as thier gross commission.  3% is always preferred.

Let's use some common sense people...

First, do you expect this agent to work hard to sell your home when he himself can't work hard to save his commission?  If he's giving away his commission, think about how he's going to give away your equity to make the quick buck.

Second, how hard do you expect this agent to work for you? Ask the next professional you meet to discount his commission 90%.   See what happens...

Third, the agent needs to tell the truth that if another agent brings a buyer, that agent is expecting to get paid at least 2.5%.  He fails to mention that on his site.  Isn't that called a "Bait-N-Switch" marketing. 

I know most people appreciate a person who is direct and tells the truth.  Unfortunately, some people never see beyond the savings. 

Posted by

Sincerely,

Richard M. Johnston, GRI, ABR, e-Pro
RE/MAX Grand Central
818-730-4128 Mobile
818-776-9386 Fax
DRE#01416699
http://www.homes.la

San Fernando Valley Homes for Sale

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Comments (2)

Brent DeWitt
Century 21 Superstars - Mission Viejo, CA

The fact about discount brokers is that they have been around for 30-years and have never achieved more than a 5% market share in any major market. They are strictly for the outliers of the bell curve.

Brent

Jan 07, 2010 01:05 PM
Richard Johnston
San Fernando Valley - RE/MAX Grand Central - Sherman Oaks, CA

Thanks for the reply Brent.  I'm still wondering where are those discount realtors dissapeared to?

Jan 07, 2010 01:09 PM