Full-service v/s Discount Real Estate Broker in Virginia: Key differences

Have you been preparing to sell your home quickly? The home sale needs you to do a lot of research and then make several decisions. One of the key things to consider is, whether to go for the discount agent or the full-service agent to manage your home sale. To determine the same, it is imperative for you to find out the key differences between the two, know what exactly is the discount agent and the full-service agent, what are their services, and more.

Discount real estate agents

It is a smart thing to look for different ways that can help you save a considerable amount of money, at the time of selling your home. Since it is a huge transaction that involves an enormous sum of money, you might want to save a big chunk of money from your home sale. Choosing the right agent is one of the best ways to lead to significant savings.

Discount real estate broker Virginia offers a heavy discount on the services offered. These agents charge much lesser than regular realtors. You can expect them to charge a total commission of just 3% to 4% of the total home sale. But when you pay a less amount compared to the full-price agent, you get fewer services unlike what you get from the traditional realtor. Most discount agents offer limited packages and offer services as a part of the à la carte menu. You can also choose which services you want, and pay accordingly.

Full-service agent

The big names such as Coldwell Banker, Keller Williams, Century 21, RE/MAX, etc. are known to offer quality full-service real estate transactions. These are national brokerages that offer a comprehensive service. The full-service agents work on the full commission which is 5% to 6%. This commission rate includes the entire fees and you need not pay anything extra. The agent will give you ample time to meet you and market your home.

The full-service agents charge the highest commission and sell homes fast. They offer a range of services like marketing your home, creating MLS listings, doing online marketing on social media, creating a custom website, furnishing the signage, etc. Different agents have different tactics and strategies and offer the best results.

Full-Service Agents: Pros and Cons

To decide that you want to select a full-service agent to carry out your home sale, you need to know the benefits and drawbacks of hiring them. There are many reasons why a home seller chooses a full-service agent over the discounted ones to get their real estate process done.

The benefits include:

• The homeowners want to hire someone who can attend their call. The full-service agents are always responsive to your calls and messages.
• Many full-service agents work in the evenings and weekends too, because then their clients are also free.
• The agent will provide you with personal treatment and answer all the questions you have. They spend time with you to make you comfortable with the process and share all the imperative details too.
• The full-service agents become a link between your buyer, lawyer, buyer’s agent, attorney, etc.
• They provide you with detailed information on what you need to do.
• Your agent will give you enough time and resources to sell your home fast.

The drawbacks of working with these agents include:

• The biggest problem that homeowners face is the cost of hiring them. They charge a substantial commission from the homeowner to close the home sale. If you have a home that can sell easily or you already have a buyer, then you can manage without needing an agent.
• Also, a traditional realtor exercises full control over the home sale. You will have to follow their instructions and lose your autonomy.

Discount Agents: Pros and Cons

Now that you know what are full-service agents, and what services they provide, it is time to talk about discount real estate brokers in Virginia. Let us evaluate whether it is worth generating massive savings by eliminating key tasks. Many sellers are known to work with discount agents successfully. This is the reason why the number of agents offering these services has been soaring.

When you sell a house, you need to know that you need to pay two parties – the seller’s agent as well as the buyer’s agent. You can control the commission paid to the seller’s agent but you may have no control over the buyer’s agent commission. As you pay a 6% commission to a full-service broker, half of the amount goes to the buyer’s agent. So, both the buyer’s agent and seller’s agent get a 3% share each for the home sale.

When you hire a low-rate realtor, then you pay 4% to 5% total commission on the home sale. Here, 3% goes to the buyer’s agent, as in the case of a traditional agent, and instead of taking 3%, the seller’s agent gets only 1% or 2% commission.

Here are the benefits of hiring a low-rate realtor:

• The main benefit of working with a low-commission agent is that you are able to save magnanimously. In the real estate market, more than 70% of homes get competing bids. Many buyers are willing to pay the asking price to get a house. Since inventory is currently low, the buyers are interested in many houses.

So, if you have a decent house in a good locality, the chances are that you will get a host of offers within a few days of creating the listing. so, it may not make sense to pay the realtor a heavy amount. Discount Realtors are the best option in the case of limited inventory and a good-conditioned house.

The drawbacks:

• The discounted agents do not offer complete services. They offer only limited services and you will have to drive several aspects of the home sale on your own.
• However, if your home needs a lot of upgrades and the seller’s market is not hot, then a comprehensive agent is the best choice.
• The discount agents may help initially with the sale process and get you the buyer but only the full-service realtor moves the sale deal forward till the end.

You can also try negotiating with a full-service agent to accept a low commission from you. They will still offer you complete services and sell homes fast in case they offer a discount. Also, if you are using the same agent as seller and buyer, you can expect them to charge a low commission, as they get paid twice. Some agents might accept the offer if you have multiple properties to sell. Try your luck!