What is the difference between FULL SERVICE and a Discount broker?

Reblogger Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417
Real Estate Agent with United Real Estate TX #0552717

I recently helped buyers purchase a condo that was listed by a "discount" broker. There's a huge difference between full service and the level of service provided to the seller in this transaction.

The ONLY thing the discount broker did was put the listing in the Multiple Listing Service. The showings were arranged by the seller, the offer was negotiated by the seller, the seller had to be directed by me, the buyer's agent, to perform required activities such as providing the HOA materials to the title company.

You get what you (don't) pay for with a discount broker. The discount broker did not update the status to Sold until 3 weeks after closing (a violation of our MLS rules). The discount broker did not update the status when there had been a previous contract on the condo and we found out about it at the closing table. The discount broker did not update the incorrectly entered address of the property in MLS. The discount broker did not update the woefully under-reported amount of the HOA dues in MLS.

Read Scott's blog post below about differences between full service and discount brokers.

Original content by Scott Godzyk NH License 033394

Are you missing the boat? Everyone loves a discount but at what price? Talking to a home seller who just lost tens of thousands of  dollars by trying to save a buck, inspired this blog. Many consumers do not know what full service means. They dd not know what getting a discount gives up. Here in the Manchester NH area, there are lessons learned that I would like to share.

 

My story starts with the seller not realizing how much they actually gave up by demanding a discount. There was no ads. There was no one there to show the buyers the house. There was no one there to assist with negotiations on the offer. There was no one there to represent the seller at the home inspection. There was no one to help when they found 2 pages of things wrong. There was no one there when the buyers appraisal came through lower than it should. Each step of the way the buyer wanted more and more of a discount. The seller packed up his house and moved awaiting a closing that never came.  

 

So what did this seller lose? They gave a check to the buyer for repairs instead of crediting a6t closing. They now are in a hotel with all there things in a storage unit not being able to close on their next home until this home had closed. 

 

What could a full time and full service agent of done different?

 

LISTING THE HOME: Listing the home is more than guessing a price, putting it in MLS and placing a sign in the yard hoping for it to sell. Full service means guiding your seller through each step of the selling process.

 

MARKET THE HOME: Marketing the home starts with setting a realistic asking price. Letting the seller know what it should sell for. Then to the actual marketing such as getting the house ready to show. Followed by a marketing program to attract the most possible buyers to their home.

 

SHOWING THE HOME: First and foremost to let the seller know how showings will work. How to be prepared. How not to be there during a showing and what hours showings may happen. The fact that we want only qualified buyers to see the home and why. Lastly who will show the home.

 

OFFERS: It is important to be ready for offers before you even start showing the home. What offers may come in it. What price the home should sell for. What to do if you get a low offer. How to counter, what to counter and how to get the buyer to accept. 

 

INSPECTION: After the contract is agreed, comes the home inspection. This can be a deal killer if not done right. The best advice is being prepared before putting it up for sae, having anything fixed that needs fixing. The dark secret is some buyers use the inspection to get a price reduction or money back. For me, being there allows me to see first hand what they see, what they are saying and I can better give advice to my seller what to do if anything is found. 

 

APPRAISAL: You are on your way, the buyers bank sends an appraiser over. But different appraisals will see different things. Having the listing agent there with hard facts can assist in heading off a lower value than there should be. 

 

CLOSING: Lastly is the closing. To making sure the buyer is on track. To making sure the closing goes smooths. There is nothing worse than a deal going South at closing because someone missed something. By simply staying up with the sale during the sale, you can lead to a happy closing. 

 

This local sellers deal had died. He moved back in house and is preparing a plan to sell in the future. It was his Father whose house I sold, telling him what he did wrong. The son looked and asked "how he was suppose to know what was right?" The answer is here in this blog. Ask questions and know that as in life, you usually get what you pay for. By focusing on saving money, he lost "tons" of money. 

 

Perhaps the MOST IMPORTANT message is to share with every consumer that my philosophy is simple, provide more personal and professional service to guide my clients through each step of the buying or selling process. All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest. Those that hire me, find a dedication like no other.

 

To CONTACT Scott Godzyk please call 603.661.2121 or EMAIL: Sctprop@aol.com .

 

About the Author: Scott Godzyk is the Owner/Broker of the Godzyk Real Estate Services in Manchester NH. Proud to be locally owned and operated with 32 years of experience, Scott is a leading Agent for Listing and Selling Homes in this area.We are Full Time Agents ready to serve all of your Real Estate needs. Servicing Hillsborough, Rockingham, Merrimack and Belknap counties. 

 

    

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Rainmaker
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Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Lorrie. There is no way to compare one to another. They just don't compute.

Apr 16, 2019 07:51 AM #1
Rainmaker
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Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Hi Lorrie... a discount broker versus a full service broker is the definition of you get what you pay for!

Apr 16, 2019 12:35 PM #2
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

If you want to sell your house you go with full service broker who is going to market your home correctly & be your advocate. If you're not concerned about when your house sells or for how much go with a discount broker. They'll slap it up on their listing service & say a little prayer.

Apr 16, 2019 03:16 PM #3
Rainmaker
3,291,139
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Home and Condo Specialists

Oh yes, you get what you pay for, and I don't understand it. They still have to pay the discount broker and still have the possible headaches of dealing with the public who are only looking for a cheap deal!

Apr 28, 2019 07:59 AM #4
Rainmaker
2,677,173
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

In almost all things in life, you get what you pay for.  This was an excellent choice for a reblog, Lorrie.

Jun 06, 2019 02:40 PM #5
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Rainmaker
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Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417

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