Home Selling in Brooklyn>Question Details

Yael11201, Home Buyer in Brooklyn, NY

Our friends are moving to Calif in the next 6 mos. and need to sell. They are debating using a lower cost brokerage (3%) vs. full service (5% - 6%)

Asked by Yael11201, Brooklyn, NY Wed Jun 30, 2010

The husband is leaning towards the discount brokerages and the wife likes the full service brokerage solution because she recognizes the names. Those of you in the community can you really tell them (me via Trulia) what are clients really paying for and how do these types of firms differ?

As additional information they live in an area of Brooklyn where these smaller brokers seem to outnumber the larger firms at least in the number of For Sale signs.

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Answers

50
I do not believe in the discount model. Not as a broker/owner with the ability to switch a franchise if I was really sold on the idea, not as an agent, and not as a home seller. I say this not from theory, or some illusion that 6% is the only way to go, or because I'm holding on to old school ideas when everyone's gone new school (they haven't - just sayin), but rather from experience in the market. Discounters are often part time hobbyists. They fled to the cut rate shops because their fees were less, their commission splits were less. They don't want to be members of the Association of Realtors because they don't want to pay the membership fee, thus they have no reason to play by the rules as well. Finally, and most important of all, in my experience, and I know I will get a lot of resistance here from people who are affiliated with discount brokerages, but in my experience, most are just not good at what they do. They don't call back, their paperwork is poor, communication is lackluster, their skill set has never been honed because they received no training, they don't work the market, they never know the inventory, and most don't even know what the forms mean - we've trained many of them who came over from discount shops so I know this to be true.

Not to say there aren't some really good folks in the discount realm, but doubtful. Do your homework. Ask them how many transactions they've done this year. Make them show you proof. We're not looking to brag here but rather to see if they're out working their profession or just doing a deal here or there for friends or relatives (hobbyist). Make them provide a marketing plan. For a sharp discount there probably won't be much more than popping a sign in the ground and putting the house on the MLS.

Finally, ask yourself this. If they are so willing and ready to discount the value of their services, what little they may provide, then how do you think they'll do when negotiating on your behalf?
1 vote Thank Flag Link Sat Oct 9, 2010
As with most services, you pay for what you get. If your friends are looking to maximize the amount of money they will get for the sale of their house, then I would not recommend going with the discount brokerage. Full service agents typically offer the knowledge, experience, and extensive marketing necessary to ultimately bring in the most money for the sale of a property.
1 vote Thank Flag Link Wed Oct 6, 2010
The discount brokerages always have a large amount of for sale signs out there. Find out via MLS statistics how many of them were able to put "sold" on those signs. For the ones that they were able to, pay attention to time on market, and what the sale price was vs. the list price. Saving 1-2% doesn't add up to much after an extra 3-5 months of house payments.
1 vote Thank Flag Link Sun Oct 3, 2010
There is no guarantee that they can and will sell regardless of what kind of real estate pro and pricing they choose.

Generally speaking the sellers agent works hard to post the property for sale all over everywhere. Then it is hoping to catch calls and find a buyer. The sellers agent very seldom makes the sale to a buyer. That means how the listing agent prices and markets the property is very important.

Interview a few realtors before deciding on one. Get them to do a C.M.A. Then throw out the highest priced as they are likely very wrong and not honest about pricing reality. If the remaining CMA's are fairly close choose who can market most and best.

Consider the blog below. It gives some good ideas about choosing a realtor. Also, look at that authors other blogs. They may be helpful.
http://www.trulia.com/blog/rockinblu/2008/12/i_ve_got_my_fin…
1 vote Thank Flag Link Fri Jul 2, 2010
Dear Yael:

I want to point out that having your property placed on the Brooklyn New York Multiple Listing Service (BNYMLS) is very important in many parts of Brooklyn, many times it is way more powerful than REBNY (Real Estate Board of New York). The majority of REBNY brokers are located in Manhattan and do not do business in Brooklyn.

Anyone who says that REBNY is more important than the Brooklyn New York Multiple Listing Service (BNYMLS) is probably not a member of the BNYMLS and does not know better. Many years ago there were actually three multiple listing services in Brooklyn, the Mid County MLS, the South Shore MLS and the Bay Ridge Bensonhurst MLS. Those 3 MLSs have since merged and are now simply the Brooklyn New York Multiple Listing Service. All member of the Brooklyn New York Multiple Listing Service are also required to be members of the National Association of Realtors (NAR) which means they have to adhere to a higher code of ethics than those simply required by New York State law. REBNY brokers usually are not members of NAR.

Personally I think all of these entities offer benefits to homeowners and consumers, this is why my office is a member of both, REBNY, the BNYMLS and also NAR.

Again, I would love the opportunity to help you, if I can be of further assistance please let me know.

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665
Cellular: (917) 805-0783
Email: MitchellSFeldman@aol.com
1 vote Thank Flag Link Wed Jun 30, 2010
You get what you pay for - exposure on the internet cost money. And since over 80% of buyers start their search there as a seller you want that exposure.
0 votes Thank Flag Link Tue Oct 19, 2010
It is not about the Broker, its about the Realtor that will actually be working to sell your home. That person needs to communicate well with you and work effectively to market your friend's home. I would meet with several Realtors and see who you connect with. They should each be willing and able to explain exactly what they will do to market the property.

A few examples: Add the listing to: the local Multiple Listing Service, Trulia & Zillow & Realtor.com etc., Market the property within their firm (its possible an associate may have a buyer looking for a similar home), write a blog about the home, announce your Open Houses on Twitter or Facebook, walk the block and ask neighbors if they have a friend or family that might be interested in moving into the neighborhood, send an email blast to current and past clients to see if anyone is interested in the property.

The key is to find a Realtor that cares as much about selling your home as you do. That may not be the biggest Broker in the neighborhood, often times the "little guy" tries harder. Remember Avis was the #2 Rental car company and their slogan was "We are #2 so we try harder to earn your business". Do a Google search using the name of your neighborhood and "realtor", read some blogs and Trulia Q&A.

I wish you the best of luck finding the perfect Realtor and getting a quick, clean sale.
0 votes Thank Flag Link Mon Oct 18, 2010
First assumption i would like to blow out of the water is that your home will sell at the same price regardless of agent selection or agent activity. If you take that assumption away, and can get it sold faster for more money with less hassle, why take the theorhetically cheaper route? When in fact the commission is a success fee only paid at closing.
One last ding on limited service, (not low cost) brokers. They often use your house as a buyer lead generation tool to attract buyers and sell them someone else's house, they make more money selling other listings than your house.

If you like my answer, please select best answer, Thanks and good luck!
0 votes Thank Flag Link Mon Oct 18, 2010
If the decision has not yet been made then the following should be considered:

The smaller the overall commission the less money can be spent on advertising and paying out to other brokers to bring their qualified clients to your home.

Mastering the use of online marketng and print media is something a full service broker should provide. Smaller brokerages will rely mainly on the MLS, signs, open houses internal client databases and minimal advertising. More than likely they will get far fewer outside brokers to show your property because of the low buyer/sub-agent payouts.

Remember if 90% of potential buyers use the Internet in searching for a home then try this experiment. Use Google to search for key phases such as "Real Estate Brooklyn NY Homes for Sale" and perhaps add the neighborhood and some other key terms. Look at the results, almost always the larger firms will be at the top of most Google results. You are paying for maximum exposure with the largest buyer pool and highest price.

Best regards.
Bonnie Chernin and David Rogoff
Fillmore Real Estate Branch #19

917-593-4068 (CELL)
davidrogoff@fillmore.com
0 votes Thank Flag Link Tue Oct 12, 2010
Don't worry about the commission. Worry about the level of service your friends will receive. Find out from anyone they're considering what services will, and won't, be provided. Find out what marketing will and will not be provided.

Especially if your friends are in a position where they "need to sell," then they need the best, most effective representation possible.
0 votes Thank Flag Link Sun Oct 10, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Given that 85% of all sales begin on the internet you want an Agent that is highly skilled in marketing a home on the public internet sites. In the end you will get exactly what you pay for in terms of services and that discount brokerage will more than likely end up costing you more in the end since they do not invest in marketing your home to the degree that a full service agency does. I've included a link to a recent blog I wrote titled 6 questions to ask before hiring an agent that I think your friends may find helpful..

Best Of Luck,
Judi
0 votes Thank Flag Link Thu Oct 7, 2010
As many have stated, you get what you pay for......... IMHO discount brokerages will list your property for you and put it in the MLS and perhaps print up some flyers depending on the agent involved, then the rest is up to you. The discount agency probably isn't going to do much else. On the other hand, in addition to the above, a full service brokerage will do local and some magazine advertising, some internet advertising via their website and in most cases via a national and/or international website. An agent will do their own advertising and will probably have their own website. In some cases an experienced agent will set up a website exclusive to your property. IMHO you will get much more exposure for your property with a major company. I also believe that it is important to interview the agent and to have an agent with experience in the market you are selling/buying in.
0 votes Thank Flag Link Thu Oct 7, 2010
You get what you pay for..................
0 votes Thank Flag Link Thu Oct 7, 2010
Full service brokerages spend millions on advertising listings and have full time agents that are constantly working with buyers and sellers. A full service brokerage is likely to market and sell the property faster and closer to list price. Most buyers search online before finding an agent, would you go to http://www.xyzrealty.com ???
0 votes Thank Flag Link Thu Oct 7, 2010
Do they really want to be the ones opening up their door to perfect strangers that come knocking? My advice is leave it to a professional who has at least screened to know that these are real buyers and or agents - not someone looking to possibly rip you off or worse.

Sandy Farmer
Realtor, GRI, CSSN
John Hall & Associates
sandy@land-homes.com
Web Reference: http://homesales411.com
0 votes Thank Flag Link Thu Oct 7, 2010
The comments previously state the pros and cons of branding vs. boutique.

Second point to consider is to see the closed or sold listings.
These reflect what the market says is worth buying and at what price. Who is making the deals happen in the area you are listing?
Talk to several possibilities. How is the customer service from the very first impression onward.
When they visit your home and give a listing presentation, imagine how they
will respond to problems and challenges during escrow. Ask questions. Do you feel that they are really listening to you? Who was prepared, knew the area, had previewed the properties in competition with yours?

If you can get that person for 3% hire them.
Unless they find the buyer themselves, if they pay a discount of 2.5 % to the buyers agent they will make a .5 % commission.
Clients in San Diego pay on average between 5-6% from what other agents in our office of 100 agents reports. For example listing agency Prudential CA Realty 3% ( 1.5 to Prudential/1.5 to the listing agent) Boutique agency of SD buyers agent 3% (1.5 to the agent/ 1.5 to the brokerage) This is most simplified. alterations in the division will vary depending on number of transactions and other factors.
Web Reference: http://www.lchometeamsd.com
0 votes Thank Flag Link Wed Oct 6, 2010
I have to second Craig Brezina....You usually get what you pay for. This is why successful brokerages don't have to cut their fees, because they are worth it.
0 votes Thank Flag Link Wed Oct 6, 2010
As a realtor in the Memphis area, I have found that many of the smaller brokerages do not add the services that are so vital in this market. Many of the realtors have other jobs and cannot always answer their phones. Just this morning, I was trying to show a condo downtown, and I had to wait for a discount brokerage agent to call me back to tell me if it was all right to show the home. I have a service which does that for me, which makes appointments much easier. If training were possible, it would be difficult for the realtors at a discount brokerage to attend, sine almost all are conducted during the daytime business hours.

In my opinion, if I were choosing a dentist who could get the job accomplished, I'd want someone dedicated to the profession, as I know the agents in my office, Re/Max on Track in Gemantown, TN, are.

Sincere realty,
Kathy Warren
0 votes Thank Flag Link Wed Oct 6, 2010
Good Morning,

I look at your question from two perspectives. First the number of For Sale signs by the smaller brokers only reflects that the Seller's are trying to save money by cutting their sale commission. In my own market that 'discount commission' only applies if the sale is completed in the brokerage firm. Smaller firm and less Agents means that the house is going to get sold by another Brokerage firm and thus the commission nets out the same. And, the market share of the larger brokerage houses will really tell you who is selling.

Realtors work hard for their dollars and the national standard commission is 6%. I haven't had a raise in over 10 years! But back to your question. I have Seller's that realize this is the time to pay more in commission to get their house sold - more inventory, more competition and everyone works for their dollar - why would go Cheap now? Time is money.

Lastly, Agent to Agent relationships are as important as Agent to Client. Larger brokerage firms have Agents that a history of customers and clients and of doing business together. You want that name recognition and working relationship to get your home sold. Larger brokerage for sure!
0 votes Thank Flag Link Wed Oct 6, 2010
If a discounted firm has an office and is a member of the Board of Realtors in my opinion the discounted firms are full service and offer the same services as the name brands. The only difference is the name brands have franchise fees and huge over head to pay for. The smaller discounted firms do not have the burden of francise fees therefore they can and do offer the same services but are able to pass the savings onto their sellers due to much less overhead costs.
0 votes Thank Flag Link Wed Oct 6, 2010
I agree with Craig, "you get what you pay for." Mass advertising and personal service sell homes. The more people that see your listing, the better chances of finding a buyer. Closing is key, not showing.

Laura Jacobus
http://www.ljnjhomes.com
973-960-1355
Web Reference: http://www.LJnjhomes.com
0 votes Thank Flag Link Wed Oct 6, 2010
Quick answer: What will it cost them if they go with a discounted brokerage and find out that it was a mistake? Time is of the essence, so there isn't time to "test the water". I would recommend going with the name and possibly reputation that they know. Also, commission is negotiable, so maybe they can get creative and pay 6% if it sells in 30 days, 5% if sold in 60-90 days and so on....This will incent the agent to sell quickly and the customer will be happy as well. With all this said, if the price isn't accurate it will never sell, so don't tell your friend to just add the commission to the price of the house, that won't work. Good luck.

Mike Consoli
Prudential Ben Consoli Realtors
Haverhill, MA
Web Reference: http://www.mikeconsoli.com
0 votes Thank Flag Link Wed Oct 6, 2010
Hi Yael 11201
Seriously 6 months now they are down to 2 months you asked this question in june time is ticking
away do you really think a discount broker is going to work 100% for you! 31 honest people have given
you their best advice. Have they even started interviewing agents? What is more important selling
their home or trying to save a few bucks.
0 votes Thank Flag Link Mon Oct 4, 2010
In this challenging market, I wouldn't recommend a discount brokerage; as all aspects of marketing, advertising, etc will be just that-- "discount". I would recommend they interview two to three full-service agents (make sure they are full-timers, not hobbyists), ask for their market stats, including pending sales, and recent solds, and year-to-date sales numbers. Good luck.
Web Reference: http://www.johnlscott.com
0 votes Thank Flag Link Mon Oct 4, 2010
Call a few different agents from different brokerages and ask for a consultation. Be sure to ask what their marketing plan is for your home, what exactly will the agent be doing in representing you and ask them about their brokerages training and continuing education programs for their agents. You will be able to tell the difference in the answers. The old saying "You get what you pay for!" stands true here, whether it is a brand or a small brokerage. Be sure you work with an agent that is willing to work hard in representing you!
0 votes Thank Flag Link Mon Oct 4, 2010
You usually get what you pay for. This is why successful brokerages don't have to cut their fees, because they are worth it.
0 votes Thank Flag Link Sat Oct 2, 2010
First of all, to decide you should let the agents selected from each company present to you exactly what their services entail in writing. Any great agent that has skills and has been successful will gladly show you what you're going to get and how your home will be marketed.

Also, you would expect that the low cost brokerage company has more signs out there because of the low commission they charge. What you need to find out is how much of those home have they actually sold. In fact, if these home owners using their services are in your neighborhood maybe you want to ask them if they are satisfied with the service.

Remember, sometimes you get what you pay for.
Web Reference: http://www.RhondaHolt.com
0 votes Thank Flag Link Sat Oct 2, 2010
It's not the commission amount your friends should be considering. What they should be looking for is who can deliver the highest "net" amount and the best qualified buyer. Can discount broker show any record of selling property within 30-90 days and under 5% discount from asking price?
0 votes Thank Flag Link Tue Jul 6, 2010
Hi Yael,

Buyers are often "pre sold" by what they see displayed on Realtor.com and the MLS system so it's crucial that an agent be adept in getting the best images (and leaving off the not so good images) and attractive description to lure in buyers.

So, have your friend take a look at similar listings on Realtor.com to get an idea of how well the agent presents their properties. If you see an agent that has inferior images and misspelled and gramatically incorrect descriptions, your friend may want to steer clear of hiring that Realtor. There are many well qualified Realtors with great marketing ability so why not go with one of those Realtors. As was mentioned by Dan Chase, the majority of Real Estate transactions close with two Realtors, the Buyer's agent and the listing agent. It's rare (and highly suspect) if a listing agent closes the majority of their sales earning both sides of the commission.

All the best,
Alma
0 votes Thank Flag Link Sat Jul 3, 2010
Hi Yae:

Good question, ask your friend to do a CMA.

Your friend is going to do just fine provided they interview a few and ask them
to document what a Listing Agent will do for them

Good luck.
Perry
Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Fri Jul 2, 2010
Hi again Yael
The sooner they start interviewing and getting the property on the market the better. There is currently alot
of activity and 6 months passes quite shortly, depending upon the type/location and condition of the home for sale. Also since it is more difficult today to get mortgages you may have to go through 2 or 3 contracts so
I do suggest you call one of us shortly. my company is one of the largest in brooklyn with over 200 agents. We always move our listings first before showing other agents, so you will have alot of help.(We also have
offices in the other boroughs) So I do hope you give me a call it would be my pleasure to work for you.
madelinepadovano@fillmore.com
0 votes Thank Flag Link Fri Jul 2, 2010
There's nothing better than a local area Realtor. Usually, you receive the Level of Quality, that you are willing to pay for. .... Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Fri Jul 2, 2010
I agree with many of the responses below.
Interview a few agents.
Make sure they will not being losing services for the lower commission.
Web Reference: http://MichaeDvorkin.com
0 votes Thank Flag Link Fri Jul 2, 2010
I agree with other realtors.
Fee is negotiable, interview the 1 which can do the job.
0 votes Thank Flag Link Thu Jul 1, 2010
Hi Yael
Just as all of my co-realtors have already explained to you, you get what you pay for. The most important thing here is to get the job done sell you home. In today's market a full service agent will do that for you because we work for you and have many ways of marketing your property. Most of the smaller companies
do not use all of the avenues that we use so won't be abe to get you the most exposure. I can only suggest
that you interview a few agents and then decide instead of just thinking of the 3% vs 6%. Don't forget this
is also part of the negotiation money just in case there is a very close offer, then the agent has something to
cut to make the deal, but if its 3% there is nothing. I look forward to hearing from you and seeing your home.
madelinepadovano@fillmore.com
718-332-8800
0 votes Thank Flag Link Wed Jun 30, 2010
Keep in mind that commissions are always negotiable between the seller and his/her agent, there are no set standards--oftentimes we all get what we pay for--marketing that maximizes exposure and pricing are paramount in today's market--choose the agent with the most to offer.
0 votes Thank Flag Link Wed Jun 30, 2010
Full service. Just make sure at least 40% of the commission goes to MLS. Use the broker who controls the market ( for sale signs are a good indicator), you are paying for the service not a brand name.
0 votes Thank Flag Link Wed Jun 30, 2010
Do some interviewing and research, you are essentially hiring someone.
1) Ask your friends and colleagues to recommend someone they have had a good experience with.
2) Interview at least three potential realtors you have located that are actively making deals in your area.
3) Ask about and compare their marketing programs (off line and online).
4) The commission is not the issue here: selling your home is.
Good luck!
0 votes Thank Flag Link Wed Jun 30, 2010
Buyers are shopping the internet...not agents or agencies. Find a Realtor who is marketing EVERYWHERE! Someone who knows how to get the word out there.

You also want a person who knows the market, so knows how to price the house to sell and is a good negotiator.

DO NOT SHOP PRICE! You get what you pay for.
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Wed Jun 30, 2010
Dear Yael11201:

The more important question is what type of service are you going to receive in return for the price that you pay. You may be familiar with the old expression "nothing is so expensive as when it is cheap." It is kind of funny how a consumer will spend extra money on something so trivial as ketchup (Heinz) but then go cheap when they hire someone to sell what is probably the largest asset that they own.

If you list with a discount broker, the service that is provided along with the time, money and effort put into marketing the property will also be reduced. You have to ask yourself "how am I going to get the highest NET dollar when the deal closes?" In order to give the property the highest level of exposure and make sure that both buyers and agents are aware and excited about the property being for sale, you need a good price to get buyers excited and offer a decent reward to the agents if they find a good buyer offering you top dollar.

The best way to make such an important decision would be to have 3-5 agents meet you at the property you are selling, offer you their opinion as to how much they can sell it for, their commission rate and what they are going to do to market the property and make sure you get the highest price possible. Then you can make an informed and educated decision as to what is best for you.

My company has several offices in Brooklyn which cover the entire borough. I would love the opportunity to help you and preview the property to offer you more advice and suggestions to help you along the way. I can also show you the unique ways that my company markets properties in Brooklyn and talk more about what type of commission rates we can offer you.

Take a look at my Brooklyn Real Estate Info Blog article on this topic:
http://www.homegain.com/blogs/mitchellsfeldman-507663/Listin…

and also take a look at this article:
http://www.homegain.com/blogs/mitchellsfeldman-507663/Import…

If I can be of further assistance please contact me. Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665
Cellular: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Wed Jun 30, 2010
When I hear of discount or 3% fast deals brokers. As an agent
there is no such thing and if thier is well you get what you pay for.
Just give agent a few seconds to sit down with you and discuses
aplan that willreally work for both of you. Before you speak with
discount brokers please just interveiw more then one agent is what
they have to offer your friends.

Fajardo Delacruz
Licensed Real Estate Agent
Century Homes Realty Group LLC
Direct Line: 347-932-0609
Office: 718-886-6800 ext.305
Fax:718-886-6811
0 votes Thank Flag Link Wed Jun 30, 2010
It's a truism in life, you get what you pay for. The most experienced agents do not work for a discount commission because their clients place more value on their services. The most experienced agents deliver a higher quality of service and that usually translates to a speedier sale at a price near the top of the market.

Every seller is unique and so is every buyer. So too, every sale is unique. If you choose a discount broker you may be sacrificing quality and experience. The current real estate market is challenging even for the most experienced, full-service agents. Why gamble with a discount broker?

According to the recent Baylor University study, what seller's want most in a real estate agent is experience.
I recommend you interview several agents, relying upon referrals from your friends and family. Choose an experienced agent that offers a full-range of services to get your listing sold.
0 votes Thank Flag Link Wed Jun 30, 2010
Choosing the right Brooklyn real estate agent for you is a vital task. This is someone who will be inside your home, interacting with your family and working with one of your most valued possessions—your home. You need to find someone you trust to take care of you and give you the best advice.

I may be the Brooklyn real estate agent for you. Call me Charles D’Alessanndro of Fillmore Real Estate your Brooklyn Realtor today at(718) 253-9600 ext.206] or email me at charlesdalessandro@fillmore.com to find out more about my experience and areas of specialization.
0 votes Thank Flag Link Wed Jun 30, 2010
It makes sense for them to go with who ever they feel can do the job and make them the most money, the amount they pay should be the last thing they think about.
Web Reference: http://www.realbrooklyn.com
0 votes Thank Flag Link Wed Jun 30, 2010
If I were speaking to your friends, here's what I'd say: A lot depends on your local market and your individual situation.

When most of the country was experiencing a real estate "boom" five years ago, most homes sold quickly, and real estate brokerages did not have to market their listings for prolonged periods of time. Nowadays, many (if not most) parts of the country are experiencing a slow turnover of inventory, and that means selling a home in this kind of market requires every advantage, every edge, a Realtor can provide to get the property sold.

Look at it this way. A limited services brokerage is just that. The company is charging you less (whatever it may be) than a full service broker. However, to do so, and still stay in business, the limited services broker will do fewer things to market your home. These things can vary., but most will include putting the property in the Multiple Listings Service and placing a sign in the yard.

Beyond the basics, you can select additional services "ala carte" at various prices per service. With some limited services companies, the Sellers set up the showings, conduct open houses, and receive and negotiate all offers themselves. These types of companies hold appeal for Sellers who are experienced agents themselves, since much of the work will be done by you. This type of approach also has more chance for success when you are in an actively-moving real estate market.

However, limited services companies may not offer you what you need most in today's market--Marketing and Exposure. These are the primary reasons for hiring a real estate agent--To market your home by exposing it to the greatest number of agents and Buyers possible. If the house doesn't sell in the next six months, what happens then? A good, full-service agent, with a strong marketing plan could be just what you need. Good luck.

Warm regards,
Maggie Hawk, REALTOR
(386) 314-1149
Watson Realty Corp.
0 votes Thank Flag Link Wed Jun 30, 2010
I agree - you get what you pay for. The most important thing in selling your home in Brooklyn or Manhattan is that the broker you use is a member of the Real Estate Board of NY (REBNY). As I've discussed previously, REBNY brokers are required to share their exclusive listings with all other REBNY members (approx. 5000 brokers and agents in NYC) and to pay the co-broker at least 50% of the commission amount (hence in part the higher commission charged). Non-REBNY members often will not co-broke all of their listings, or will offer the co-broker only a reduced commission - definitely a disincentive for a buyer's broker. The Brooklyn MLS is far smaller than RLS, the REBNY database, and is not used by firms like Corcoran, Halstead, and Brown Harris Stevens.

Additionally, a full-service firm will provide the necessary market reach to make sure that your firends' home is seen and appreciated on as wide a basis as possible (and this should include professional photography and floor plans that show the home in its best light). Many smaller brokerages do not supply these services and do not have the web presence of larger names - what good is a "For Sale" sign if the property isn't featured on a highly trafficked web site and the New York Times, considering that most buyers look first at the internet for homes.

Do not hesitate to contact me if you or your friends would like further information on the full range of services and marketing strategies a REBNY-member broker can provide.
0 votes Thank Flag Link Wed Jun 30, 2010
If you are not going to be the most influential person to them, then let them make up their own minds.
0 votes Thank Flag Link Wed Jun 30, 2010
The important thing is not to discount the compensation to the Buyer's Realtor so there is not a disincentive to show the property.

Also, some Realtors prefer not to work with "well known" discounters so if they decide to go that route they may want to go with a lesser known entity.

Also they may want to see how similar homes are presented on http://www.Realtor.com. Some full price Realtors offer less than stellar marketing on Realtor.com. It costs a little extra money to include customized descriptions, extra photos and a virtual tour and even some well know Realtors do not pay Realtor.com the extra marketing fees.

Experience counts, too. And... Endorsed Local Providers on http://www.DaveRamsey.com may be a good place to start.
0 votes Thank Flag Link Wed Jun 30, 2010
Regarding how well a broker performs depends on the customer they have or wether or not it is a niche market. Many times a smaller broker can do just as good a job as a larger firm because the listing means so more to them. Commissions are always negotiable & if you would like I can compete quite well with some of the larger firms. As an independent broker I would appreciate the opportunity to help you - I also offer the ability to list your home on the MLS and a myriad of different websites homebuyers use. Looking forward to being in touch with you in the near future!

Regards,
Jack Menashe
SHER ESTATES

917.797.0215
0 votes Thank Flag Link Wed Jun 30, 2010
If you pay half price, you get half of the services. you wouldnt go to a dicount doctor or a discount lawyer or a discount auto mechanic, so in real estate when you are selling your largest possession, why would you use a discount broker?

Commissions are negotiable with any broker, you can get a full service broker who performs full service and get a better commission rate from them these days. The full service broker should be able to get a better price in a quicker amount of time more than paying for their services.

More important is not what you pay but what you receive for it. Selling a home takes more than paying someone a fee to put it into MLS and wait for a buyer to come around. Guiding you through each step of the selling priocess and looking out for the seller in negotiations, disclosures, inspections and closing the deal are just as important.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Wed Jun 30, 2010
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