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This go to article covers the nuances of using discount services to list your home. Property Guys, Purple Bricks and FSBO are somewhat popular options among the non board participating listing options. In a sellers, hot market its attractive to use service with minimum listing fees (or not charging unfair fees as Property Guys likes to say) when its assumed the property will sell itself as long as you can get online with MLS exposure. But is that really the best choice?
Maybe if you pay peanuts, you might just get monkeys! But is that all you need to sell a house as Houses for sale in Revelstoke are very, very popular.
But let’s start there. That’s the wrong question to ask. In a sellers market, instead of asking “what’s the cheapest real estate commission?”, a home seller should be asking “what strategy gets me the most money in my pocket when the deal is done?”.
Isn’t that the real goal here?
Discount services like Revelstoke Property Guys and a handful of others use the hook of lower costs to list your house as a way to get you to work with them. And in fairness to them, it’s an effective marketing strategy that works for some people.
Consider the marketing campaigns and signage from a company like Revelstoke Property Guys throughout the Okanagan. Based on their ‘illegal’ signage throughout town and on street corners you’d think that everyone was starting to lean in that direction. But that’s not even close to being true. Selling a house is a complicated, legal process that you shouldn’t take lightly. Many do it yourselfer services are not part of your local board and do not participate in other board related posting services. This means you do not get the same coverage and selection in the auto emails that filter through Realtor.ca for thousands of people searching for property in your areas.
Don’t fool yourself and imagine that the realtors that represent 99% of the clients looking for homes in your area will refer your home equally to those listed through member brokerages, if they even see it! Being a realtor costs thousands of dollars, including a whole stack of membership fees to be part of highly regulated bodies requiring ongoing education and accreditation to understand and work within current laws and regulations. It’s a major red flag to these professionals to even interact with a sale that is outside of the main regulating groups.
Once you dig into the actual savings, we think you’ll be surprised that Discount Brokerages are not the best way to go. First, let’s clarify how commission works in a real estate transaction.
In a real estate transaction, the seller pays the commission to the listing agent as well as the buyers agent who brings the successful buyer to the home . The total commission paid by the seller is the combination of these 2 commissions which can range depending on the realtor (yes some realtors provide discount services too and typically you get what you pay for, all the way down to the do it yourself service where you pay the least and well, get the least). This commission is paid when the house is closed with the lawyer on the closing day from the sale proceeds of the home, not before that! Some discount services only charge a flat fee or fixed rate to list your home. In this case, they don’t have your best interest in mind, as they have no “skin in the game” or risk on the outcome. Don’t sell your house? Doesn’t matter because you’ve already paid them!
A realtors commission is an incentive to sell the home- if the home doesn’t sell, they don’t get paid. They are also incentivized to sell your home for as much as possible since their commission is typically a percentage of that amount and not a flat fee. Their reach is broader, you reach more potential buyers and they are professional specialists in listing your house in a presentation manner that shows the property for its best possible value.
We believe in providing potential clients with all the information and allowing them to form their own conclusions based on facts. The reality is that it costs more money to work with a traditional real estate agent. But, the outcome is also potentially much greater- both with a great experience and a greater sale price.
We’re sure you’ve heard “its costs money to make money” and selling a home is no different. Real estate agents have access to tools that the average person doesn’t use. Realtors also have the skills to negotiate on your behalf- which done correctly could be a substantial advantage.
Sometimes, potential sellers don’t have a real estate agent that they trust to either help them sell their existing home or find a new home. So, they call up a company such as Property Guys to help them. There is nothing wrong with that at all! But it doesn’t cost anything to get the advice of a real estate agent so that you have a comparison.
The other potential issue with listing with a low real estate commission service is that the market may perceive that you, as the seller, are hiding something. Although it’s unlikely that’s actually the case, it can be viewed that way.
The role of a real estate agent has changed over the past 10 years. Home buyers and sellers have more information available to them and realtors have had to change their marketing of homes. To get an amazing result for your home, here are some of the things we do:
We don’t just list your home, we market it strategically. We understand who your buyer is and we reach out with a targeted campaign to find a buyer that will appreciate and pay maximum dollars for your property. That brings another interesting thought to light, who do you think goes to the discount listers to look at their listings? Makes sense that it might include a larger percentage of people looking for deals. After all if they perceive that you paid less to list the property, maybe they can also pay less to buy it!
Being an experienced professional negotiator in real estate takes years and understanding the multiple types of offer environments can really only be learned from experience. Its not just about money that gets you the most for your property. Terms, inclusions, closing dates and even the language related to the negotiations all impact decisions to agree on contract on both sides. This is an invaluable component of having your own designated representative working on your side and in your best interest.
With over 30 years experience covering all formats of real estate, we are one of the most experienced dedicated real estate professional groups in the Okanagan you can choose to represent you. Our reviews and referals speak strongly in support of our skills and dedication to help our clients achieve their real estate goals. When choosing a Revelstoke and Area Realtor reach out to Revelstoke’s Realtor trusted choice and we will gladly meet with you without any obligation to show you what we can offer you.
