March 29, 2024

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Mad about real estate

How Discount Brokers Operate

We all know that Dallas Real Estate commissions are negotiable.  Many real estate brokerages, looking for a niche, are promising to save sellers money and rebate commissions to buyers.

How Do Discount Brokers Operate?

In many areas of the country traditional brokerage fees are as high as 7{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} of the sales price. Here are other examples:

  • Flat Fee Listings. This brokerage takes all their listings at a flat rate,, usually paid up front, paying a cooperating fee paid to the selling agent on top of that amount to selling brokers. That cooperating fee is also paid by the seller. You might see a brokerage ad offering to list your house at a fee of $1,500. Somewhere in the small print may be a disclaimer that this fee is exclusive of the fee paid to the selling broker. 
  • Low Percentage Fee Listings. Some brokers advertise they will take a listing for 1{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} or 2{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4}. In most cases a cooperation fee is still paid additionally by the seller.
  • Buyer Commission Rebates. You can also find brokerages who will credit the buyer a percentage of its commission or a flat-fee at closing. This money comes from the fee the seller pays the broker who presents the buyer.  
  • Graduated Fee Listings. These brokers offer a menu of fees and services, depending on the type of representation and work required. For example, if you think you can sell your home without any assistance from the listing broker, you might be able to work out an arrangement for MLS services only. The broker will put your home into the multiple listing service but will not usually do any other advertising, provided forms or render any assistance.  If you want the listing broker to handle increased responsibilities, the fee will go up, but it will still be less than most full services brokerages.
  • Reduced fees in exchange for another transaction. A few brokerages will cut you a break if you agree to sell a home through them and also buy a home through them.

Why Would Seller/Buyers Accept Reduced Services?

To save money, of course. That’s the main motivation. Some sellers are savvy about selling their own homes and don’t believe they need a full service brokerage.  Sometime they don’t but more often than not the services of a professional broker are invaluable.

Where to Find Discount Brokers?

The Internet! The internet is proliferated with Dallas Discount Brokers.  Even if you go outside of the city into the Plano Real Estate market you will find many professional Plano Realtors that will list your house at a discount.  If you are a buyer and are looking for a great value you may want to consider buying a Plano Foreclosure.  It’s a great time to invest in your own home!