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The Myers Team's Blog

By The Myers Team | Agent in Las Vegas, NV

The Hidden Costs Of Using Discount Real Estate Brokers

Las Vegas, Nevada – So you’ve decided to sell your home and hire a Real Estate Broker to assist you.  Which agent is the best choice?  Is it the one who charges the least amount of commission or the one who tells you your home is worth the most amount of money? 

Before answering that question, here are some things you might want to consider.

Most Sellers typically interview two or more Brokers before choosing which one to hire.  It’s tempting to be impressed by the agent who tells you your home is worth the most amount of money, however, BE VERY CAREFUL.  There are some agents out there who intentionally overprice a home and offer to sell for reduced commission for a variety reasons:  First, they know that if they tell you what you want to hear, you’ll likely hire them, and second, the longer your house sits on the market, the more money they will likely make.

What Sellers fail to understand is there are some Real Estate Brokers out there, who can effectively make tens of thousands of dollars from your home…without ever selling it.  For example, when you hire a Real Estate Broker to sell your home, one of the first things he'll likely suggest is hosting an open house so that potential Buyers can casually check out your property on a weekend afternoon.  

While open houses are promoted as a great way of finding a Buyer, a National Association of Realtors study reported their success rate to be only 2 to 4 percent.  Additionally, the National Association of Realtors reports that over 90 percent of home buyers are searching online to find their home.  

If open houses are so ineffective, why do some Realtors still rely on them as their primary marketing plan?  The answer is simple.  Holding an open house serves another important purpose — it becomes a “Networking Party” for the Broker.  It gives him a database of clients.  At open houses, you get all kinds of people walking in. Some are trying to see how much they should sell their own places for; others just want to get a look at what's out there." All are perfect for a Broker looking to increase his roster of Buyers and Sellers. Think about it…The Broker is devoting a couple hours of each weekend for an activity that stands a mere 2 to 4 percent chance of getting your home sold.  He won't do that unless he or she is benefitting in a big way.

Additionally, Brokers can make money just by placing a “For Sale” sign in your yard.  Once an agent lists your home, they typically install a sign in your front yard.  (With their name, contact information, etc.)  While a yard sign is a great way to let your neighbors know that your house is on the market, it also becomes a wonderful marketing tool for your Real Estate agent.  The sign essentially becomes a billboard for your Broker, allowing them to market their name and services to your neighbors.  Maybe your neighbors wish to list their homes too.  This is your Realtor’s dream! 

Additionally, that sign will generate phone calls from prospective Buyers.  Whether or not they buy YOUR home is not important.  A smooth talking agent will be able to convert those leads and find a different home for each Buyer.  In fact, a yard sign can generate five to ten Buyer calls (leads) a week. 

How can you protect yourself?  These days, it seems everywhere you look; there are advertisements from Discount Real Estate Agents, some claiming they can “List Your Home for Only 1% Commission.”  This statement alone should raise some eyebrows.  Are they REALLY charging you a total commission equal to one percent of the sales price, or does this ad fail to disclose that if you wish your home to be advertised in the Multiple Listing Service, it could cost you more?  Is the one percent they are referring to actually mean “one percent commission for the listing agent and a possible three percent commission for the agent who brings the Buyer?”  While Real Estate commissions are negotiable and there is no fixed or standard commission, it is not uncommon to see homes listed in the Multiple Listing Service offering a THREE percent commission for the Buyer’s agent. 

The question which Sellers should ask themselves is as follows, “Is the cheapest agent the one who will properly market my home in order to find a Buyer willing to pay the highest price?”  There is an old expression which says, “You get what you pay for.”  This may not always be true; however, selling a home in the internet era takes skill.  How is a yard sign or an “Open House” going to attract a Buyer in New York or Florida, looking online for homes?  To attract the largest pool of Buyers, you must advertise in places where the Buyers are looking.  Gone are the days where Buyers randomly drive from neighborhood to neighborhood looking at “FOR SALE” signs.  The internet has changed everything, and Real Estate is no exception.

There are many ethical and professional agents out there.  It’s important to know the market, and choose your Realtor wisely.

Bill and Francoise Myers, owners of The Myers Team with Simply Vegas Real Estate are Las Vegas Top Realtors.  They specialize in internet marketing and Seller Representation in Las Vegas.

For more information, please contact 702-677-4343

Visit our web site at http://www.LasVegasList4Less.com

For short sales, visit http://www.NevadaShortSaleInfo.com

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Las Vegas Discount Real Estate

 
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