What Realtors Don’t Want You To Know

Odds are that your state’s Realtor association is one of the most influential lobbying entities in the local legislature.  Most recently, a number of state legislatures passed a minimum broker services act that cripples a real estate broker’s ability to offer discount real estate services.  While Realtor associations at both the national and state levels fight for higher commissions and greater responsibility in the transfer of real property—there still remains several effective ways for the consumer to save thousands of dollars in the purchase and sale of real estate:

1. Having a Realtor Represent You is not “free” just because the seller pays the commission.

   Your Realtor that represents you will typically be paid 3 percent from the seller’s broker out of the standard 6 percent fee for listing and selling the property.  This is up to 3 percent that you can get off the purchase of your new home, if you use a discount buyer’s broker and choose to do some of the work yourself.  Usually, this means that you will have to go to a site like Realtor.com and contact the listing agents to see homes in which you are interested.  After you have one picked out, most buyer’s brokers will be glad to take one percent for just doing the contract and negotiation and rebate you 2 percent back.  Just for frame of reference, 2% on a $250,000 home is a savings of $5,000!

2. Most Listing Realtors do little to nothing to sell your home.

   The basic things that a Realtor does to sell your home is place the property on the local MLS, put a sign out front, and have some open houses.  Placing the home on the local MLS allows consumers to search homes on public sites like Homes.com and Realtor.com as well as allowing buyer’s brokers to view the home on MLS.  9 out of 10 times the consumer sites and buyer’s broker’s produce the prospects that buy the homes.  The secret is you don’t have to pay Realtors 6 percent to place the home on MLS—there are lots of Realtors out there that will place the home on MLS and all the consumer sites for around $300.00 and let the owner do all the work.

3. Why is the price always 6 percent to sell your home?

   Frankly, I do not know, but the price you pay to sell your home is not etched in stone as many Realtors would like you to think.  In fact, the price to list a home is always negotiable, and you should negotiate. Many years ago, several Texas Realtors were charged by Federal agencies for collusion and price fixing when a group of Realtors met to agree not to reduce their listing fees to less than 6 percent.   

The above are only three methods that do it yourself consumers can use to save thousands in the purchase and sale of real estate.  Please return to WIZ Realty Online for other cost saving methods in the sale and purchase of real estate.  Please remember that discount real estate services are not appropriate for every consumer, and WIZ Realty recommends you only use self service methods in appropriate situations.

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