Lake Forest, California Jan 25, 2022 (Issuewire.com) - The real estate industry is a business that — like travel and hospitality and healthcare — offers different models and options for consumers to choose from. As you shop around for a potential brokerage and agent to partner with, you might come across firms that will offer to sell your home for a reduced commission (as low as 1%-1.5%) or flat-fee rate. But is it a good idea to hire a low-cost realtor in Orange County?
The opportunity to save money is enticing, to say the least. But the National Association of Realtors (NAR) estimates that flat fees are paid to agents in just 2% of all home sales, while the national average commission rate stands at 5.8% nationwide and has hovered around 6% for decades.
Should you buck the norm and list with someone who will sell your home for a smaller commission or set fee, if such a deal is available in your area? Here we’ll explore what you can expect from signing up with a low commission real estate agent so you can decide whether it’s right for you.
Before you sign with a low commission agent…
Do your research:
- Ask to review the listing agreement in detail before signing anything.
- Don’t be shy to ask your would-be agent about their track record. Reputation is everything to a traditional agent, so there’s no reason a low commission agent should try to avoid scrutiny.
- Take to Google and search for reviews of the brokerage. While even the most reputable offices will have the occasional grumpy commenter, if there are multiple complaints about the low commission company you’re eyeing, heed the warning signs and look elsewhere.
Questions to Ask When Interviewing Low Commission Real Estate Agents
- What is the TOTAL commission rate for both the buyer’s and seller’s agent?
- Will you also be trying to represent my home’s buyers?
- Do you plan on placing restrictions on which lender to use?
- Will you be requiring the buyer to use a specific escrow company, home inspection, title company, or any other parties involved in the purchase?
- This sounds like there could be some possible conflict of interest. How will you be looking out for my best interests during this transaction, especially if you are representing the buyer and the lender?
- When you ask a realtor to “sell my home” don’t forget to ask about professional photos, videos, drone footage, online advertising, offline ads, etc. Ask if your home will appear on its own property webpage? What about featured listings in Zillow or Trulia?
- You may assume all homes are included in the MLS, but be sure to verify. NOT all agents are in the MLS and there’s nothing saying agents must be on the board.
- Ask how many homes the agent sold in the last year representing the seller and how many representing the buyer? Verify this is true!
One of the best low-cost realtor points is that it gives home sellers more control over the entire selling process. From pricing your home and scheduling showings to determining if you want an open house and negotiating a deal and inspections, when you sell your home on your own or with limited agent support, you make up your own rules.
A realtor adds plenty of value to the home selling process and the majority of home sellers still rely on them to sell their homes. For those who want to keep more money in their pockets, however, a low-cost realtor is a good alternative.
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