It's no secret—the entire country has witnessed the recent changes, ups, downs and rebounds in the real estate market. But have these fluctuations made us look at the real estate model differently? Are there non-traditional or discount brokerages out there that are counteracting this volatility with a new, refreshing way to buy and sell property? The answer is, yes; there are more ways to sell your home or a buy a new one than ever before. If you're in or on the market, here are some points for thoughts to help you decide which path of property purchase, or sale, is right for you.
Saving on commissions and other real estate fees is something buyers and sellers alike are harping on in today's real estate market, and for good reason. There are countless opportunities out there to save money when moving property.
When real estate sales slumped in recent years, many agents worked with their buyers and sellers to compromise on commission rates lower than the traditional six to seven (or higher, depending on your location) percent. We're seeing this pattern stick as lifestyles adapt to accommodate a fluctuating economy. Discuss this with your Realtor and see if there is room for commission negotiations.
You can also save money by looking into non-traditional brokerages. For example, some real estate agents are offering flat fee listing services, or fee-for-service arrangements. In these situations, you can receive professional MLS listings for one, pre-set price. Or, you negotiate a package of services your Realtor will provide and pay for them a la carte. Flat fee listings can be great, but if they come with reduced service, you may want to look at some other options.
Furthermore, the emergence of full-service discount brokerages has resulted in buyers and sellers saving money without forgoing quality, traditional service. Agencies like these vary but many offer flat-fee listing programs, fee-for-service options, discounted commissions and even incentives.
As early as 2007, April in fact, A Report by the Federal Trade Commission and U.S. Department of Justice titled Competition in the Real Estate Brokerage Industry cited that discount and full-service discount brokerages—in addition to several other non-traditional agency models—were beginning to make an impact, in most cases positive, on the real estate industry.
Incentives are another way property owners and buyers can get a better deal when purchasing and selling homes. In states where it is allowed (in many states, incentives are illegal), cash rebates, vouchers, referral programs and other discounts incentive buyers and sellers to move property using a non-traditional real estate model.
Selling your home as a "for sale by owner," or buying a home without an agent are also options, but they both present unique obstacles. As a buyer, it's often difficult to reach sellers, schedule showings, arrange inspections and fully comprehend the complex legal steps and paperwork required to purchase a home. As a FSBO seller, you will not have the same marketing reach and advertising opportunities as someone who professionally lists their property. There are virtual office website brokers and agencies that offer specialized services to FSBO clients, so these may be options if you're considering saving money in these ways.
In some states, again, where it is legal, a broker can represent both the buyer and the seller which can lead to substantial savings. However, one of the most important factors you should insist upon when hiring a Realtor is that he or she keeps your very best interests in mind. If your agent needs the commission from the sale, you may experience a high-pressure buying situation. What if the agent has a history with the buyer or seller and is biased, unbeknownst to you? Be careful if you choose this route, and do yourself a favor by meeting with several real estate agents before making your decision.
The bottom line: there are ways to sell and buy property outside of what was once the traditional real estate model. It doesn't have to be buyer's agent and seller's agent holding your hand throughout the process and guiding the purchase or sale of a home (although, in many cases, this is the easiest—but possibly more costly—method). Speak with different types of brokerages and look at your budget to decide how much commission and fees you're willing to pay and which path of buying or a selling a home is best for you.
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If you're considering taking the non-traditional route to buying or selling a home, check out http://homesations.com/ -- HomeSations is a full-service, discount brokerage that offers many unqiue and cost-controlled benefits to both its buyers and sellers.
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