Using a Denver Co Discount Real Estate Brokerage?... Are you Getting Discount Services?

Everybody wants a deal right? Do the words Craigslist, Ebay or Amazon ring a bell? It stands to reason that real estate services should follow the same line of reasoning in a competitive market like Denver.

Discount real estate brokerages have built their business model around lowering the commissions owed them on a successful sale in the attempt to attract a larger volume of listings. Many times they will ask for a small up-front charge of let’s say $500 in order to process the listing of your home in exchange for lowering the commission to 1% or 2%. Sounds pretty good for the Denver home seller. It could save them thousands on the sale of their home!

For example: If your are listing your $350,000 home in Highlands Ranch with a normal brokerage you may find that they would like to work with you for a listing percentage of 6%. Upon successfully closing on your property that would mean 3% to the listing side and 3% to the buying side, or a total commission of $21,000 paid out by you, the seller. The same scenario with a discount brokerage may look like $500 of front and 2% upon successful closing for a much reduced $7,500. That’s a difference of $13,500 in your pocket!

Let me ask you a question. If the Denver area discount real estate brokerage is able to cut their income by $13,500, what services are they cutting out to you in order to do this. They are still running a business, and a business takes money to operate right?

Dangers of working with “Cut-Rate-Real-Estate Companies”

If you are thinking that working with a discount service may be in your best interests, think about a few of these things before saddling up with one.

● Advertising budget slashed

More than likely you will find that you will not get nearly the exposure of advertising through a discount real estate broker in the Denver area. They will do the bare minimum of putting it in the MLS, and sticking a sign in the dirt.

Questions to ask- What kind of on-line advertising will you give me? How about quality and number of photos? Broker home tour? Social media advertising?

● Negotiating skills lacking

I’m just going to come out and say it. If a brokerage needs to lower their prices to try and compete with the rest of us, maybe they are not that good at their job. The quality of skills will be lacking with a Denver area discount real estate brokerage company.

● Time spent on YOU greatly diminished

If I asked you how many things you had to juggle at work this week, then I took the number you gave me and multiplied it by 5, would you be able to handle it? It is no different in the real estate world. In order for this discount business model to work for the real estate company, it has to have volume applied. More balls in the air (without adequate compensation), more balls dropped.

If you are in the position of needing to sell your home in the Denver area, think really hard about using a reduced rate company. You will be sure to get a reduced level of service from them. In today’s market, that simply will not work to sell your home successfully.