Full Service vs. Limited Service or Virtual Agents—Is There Room for Everyone?

The short answer is of course yes. Different sellers have different needs and abilities and some may choose a full service model and others limited or no service at all-the choices have been there all along. Yet the arrival of virtual Internet brokers has spawned a new ideology of it’s either "us or them".

House_keys_2 The very survival of limited service or virtual Internet brokers relies on two things: The first is they are able to convince everyone that paying a 6% compensation is the only alternative to their "discount" model, and the second is that they must convince their prospects that the minimum service they provide is all that is needed to sell a home; and everything else which a full service agent does is a waste of time and their money.

These assertions that they need you to believe are false. Frankly; it’s a bit surprising that the Department of Justice has not sought sanctions against this type of misinformation when the average real estate commission across the country is closer to 5.1%. One of the most misleading impressions that limited or virtual companies imply is that full service agents and discount agents are mutually exclusive-they aren’t.

The second scenario is one which needs more discussion. The premise that a limited service or on-line virtual broker can sell your home is not as questionable as the issue of for how much? Any homeowner wishing to "sell" their home could market it considerably below market value and so long as they were able to communicate to the public that their home was for sale, they would most certainly be able to sell it. How much money they may leave on the bargaining table and the repercussions during and after the close of escrow may linger long after the check has cashed.

Hiring a real estate agent is akin to a homeowner deciding how to do a remodel. As a homeowner you have the right to be your own general contractor; what you have to ask yourself is a) do you want to take that on (do you have the time and ability) and b) are you qualified-as in knowledgeable. You also have the right to hire the cheapest general contractor you can find. But why complain about more expensive ones when cheaper ones are available. Hire who you wantthere are options.

See Part Two–Examining the Real Estate Models

Drew & Christine Morgan Morganhomes.com

Disclaimer: This information is for entertainment purposes only and includes no legal, accounting or real estate advice nor is this response in tended to be specific to your situation-consult a specialist for your specific situation.

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