The Key Differences Between A Full-Service Real Estate Agent Vs. A Discount Agent
Posted on: 20 October 2020
If you want to sell your house, you have the choice of how you sell it. You can sell it by owner or through a real estate agent. If you want to hire an agent, you can select the type of agent you hire. With this option, you have two main choices. You can hire a full-service real estate agent or a discount agent. Before you choose one, you might want to know the primary differences between their services.
The Commission Fees
One of the most significant differences with these options is the commission fees you pay. Most full-service real estate agents charge a rate of 6%. Some might charge slightly more or less, but this is the average amount to expect. When you list and sell your home, your agent bases the commission amount on the selling price. If you list for $300,000 but sell your home for $290,000, you pay the rate based on the selling price, not the listing price.
When you hire a discount agent, you pay a lower rate. The rate varies, but it might be as low as 1%. Some discount agents charge higher rates than 1%, though, but you will know when you hire them. They will list the rate on your contract, and this will be the rate you pay.
The Services You Get
The second primary difference is the services you receive in exchange for the commission. When you hire a full-service agent, the agent does almost everything. They list the home for sale and take pictures of it. They schedule viewings and show your home. Your agent also negotiates for you and answers questions.
A discount agent typically does not do all these things. Instead, a discount agent might list the home and advertise it for you. They might not do anything else, though.
The Work You Must Do
The final difference is the amount of work you must do. If you hire a full-service agent, the only thing you must do is keep your home clean and tidy. You will also have to work around home showings. With a discount agent, you must handle every aspect of selling, except advertising on the MLS, as the agent will do this for you.
These are the key differences between using a full-service agent and a discount agency. If you have any questions about the services of each, contact a full-service real estate agency today.
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