Category: Videos

When buying and selling real estate, you can choose between traditional brokers and discount brokers. There are several key differences between these two options that you should consider before deciding which way to go.

 

Here are 4 main differences between traditional and discount brokers:

 

1. Discount brokers give you a discounted price on either the purchase side or the listing side.

Discount brokers typically work off of a flat fee, while the traditional broker’s commission is typically 6% of the sale (split between the listing agent and the buyer’s agent). This may be a huge pro for you, but discount brokers usually make up what they lack in per-sale commission with volume. We’ll discuss how that business model affects you in main difference #2.

 

2. Their tasks go from A to B: they get you under contract then hand you off to someone else.

A discount broker’s services typically don’t extend past the contract stage. This is how discount brokers get more volume in sales. While there are full service discount brokers, many offer minimal services, meaning they get you from A to B during the home sale.

 

Traditional brokers, on the other hand, get you from A to Z. If you go with a traditional agent, you will be their client from the very start of the process to the very end. This means your agent will help you with not only listing your home on the MLS, but also with fielding buyer questions, scheduling showings, marketing your home, navigating the closing process, and more.

 

3. A discount broker’s services do not typically include help with the contract, negotiations, closing, or any other aspect of the deal.

As mentioned above, a discount broker’s services don’t typically extend into these other aspects of a real estate sale. A traditional agent will, however, consistently stay your point of contact throughout each step of the home sale process.

 

4. If you’re not comfortable selling your house yourself, a discount broker is not the way to go.

Selling a home consists of 119 different tasks, from scheduling showings to navigating home inspections to marketing the property, and much more. All of the tasks that a discount broker doesn’t cover will then fall on you. If you aren’t prepared or comfortable to take on all of that legwork, a traditional agent is most likely a better option for you.

 

Realtor® and Director of Operations Robert Garcia discusses the discount broker more in his video below. Check it out for his thoughts on the topic and for help on deciding which way you should go.

Have input for the show?

Email radio@ericstewartgroup.com or call us at 800-900-9104 to get in touch with our team.

What will the 2021 housing market look like? Will there be a home sale crash? Are we going to see the market fall apart? Eric Stewart touches on these questions in his new video below.

 

This January saw 400,000 homes on the market compared to 750,000 homes in January of 2020. This low inventory paired with a large supply of potential buyers has led to a strong, competitive market and multiple offer scenarios. A lot of people wonder if these conditions will continue in 2021.

 

Eric Stewart thinks that they will remain for the foreseeable future. He predicts we’re likely to see continued limited supply for the next seven or eight years as housing stock is not being created fast enough for buyer demand.

 

What does this mean for those hoping to buy or sell this year? For those looking to sell, you’re going to be in a great position to get top dollar throughout the rest of this year. For those looking to buy, you should find an agent who will look out for your best interests and know how to beat out other buyers. In any case, head to our home page for more information.

Have input for the show?

Email radio@ericstewartgroup.com or call us at 800-900-9104 to get in touch with our team.

If you’re buying a home, you may have wondered if a home inspection contingency is really necessary. With the current market conditions favoring sellers, it may be tempting to waive this contingency to compete better against other buyers. Our advice, however, is to not do this!

 

Home inspections allow you the opportunity to find any issues–big or small–that you may want to take care of before you move in. You may even decide to terminate the deal and find another house if the inspection comes back with undesirable results. One of our recent clients, for example, waived their home inspection contingency against our guidance. They ended up facing a $12,000 repair after moving in!

 

We don’t want this to happen to you, so don’t waive this contingency! Check out this video from Realtor® Robert Garcia for more insight on the significance of home inspections.

Have input for the show?

Email radio@ericstewartgroup.com or call us at 800-900-9104 to get in touch with our team.