The “Traditional” Broker Myth

The "Traditional" Broker Myth

The somewhat fledgling emergence in the real estate industry of on-line brokers would love for sellers to believe that "traditional" agent commissions are limited (some even state that on their web page). Commissions are negotiable and many "traditional" agents are offering very non-traditional commission structures-as in by the hour. And yes, there are some arrangements (as in when your home sells in one week) that you may feel your agent was overpaid-and you might be right. But most sellers hire their agent to get their home sold for the most money in the shortest period of time. And if the agent did that in a week one would think a seller would be pleased. The alternative would be to sell the home after a long period of time (probably for less) and inconvenience to the seller-ending with the same result-a sold home. What about when a seller overprices their home against the agent’s advice and it takes months to sell; is the agent over compensated then?

On-line brokers have their place in the market but remember you will be doing most of the work, not them.

It’s akin to a homeowner deciding to do a remodel. As a homeowner you have the right to act as 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 want-there are options.

Look around; ask for references and experiences from your friends. Determine what level of service you need, or want, and hire someone (or not) accordingly.

The information contained in this piece is educational and intended for informational purposes only.  It does not constitute Legal, Real Estate, or Accounting advice and is not specific to your situation, nor does it substitute for professional advice.