Just remember the consumer mantra, "You get what you pay for." As a published author of two consumer help books, I had the privilege of doing talk radio and television shows around the country. Taking calls while on the air, the majority of the problems dealt with consumers trying to save money only to end up with an inferior product or service.
Now this business practice has infected the real estate industry! And although the word "discount" appeals to consumers, the dollar costs and emotional costs to the home seller can be large. Discount real estate companies usually work in one of the following ways.
The first scenario occurs when the homeowner (seller) pays a fee ranging from $500 to $2,000 to place their home in the MLS (Multiple Listing Service). The homeowner shows the property, draws up the contract, handles the inspections, etc. There is NO representation for the sellers.
The second scenario occurs when the seller lists the property with the discount broker for a commission of, say 2 percent. That may sound good to the seller, however the listing brokerage company will not allow realtors from other real estates companies to show your property and receive a commission. The end result is very few prospective buyers will view and/or make an offer to purchase your home.
The drawback of paying reduced fees is substantial to the seller. First, your property is not exposed to the marketplace through advertising in newspapers and magazines. The cost becomes prohibitive. Second, your home remains on the market longer due to the fact that little or no advertising means no one knows you are selling your home. This may disrupt your moving and/or relocation plans.
When you consider selling your home, you should consider the whole picture, not just the amount of commission to be paid. As the saying goes, "Time is Money" and the longer your home is on the market, the more it costs.
Ric Cornelius is the Broker/Manager of Sand Key Realty Sales and Rentals, Inc. Sand Key Realty has three offices with 40 agents. One office is at 740 S. Gulfview Blvd., Clearwater Beach, 727-443-0032; the second office is at 2701 Gulf Blvd., Indian Rocks Beach, 727-595-5441; and the third office is at 309 Belleview Blvd., Belleair, 727-461-4200.
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