Real estate is a big market in Houston, and selling/buying a property on your own isn’t that easy at all. Without any experience in real estate or with no knowledge, you will struggle with finding the right buyer/seller, documentation will be a daunting task, and wait, will you be able to negotiate for the right price?
In the current real estate market, people sometimes overlook the key players of this industry, “Real Estate Agents”, to avoid paying extra money for their service, i.e., 5- 6 % of the total deal price. However, to tempt the sellers, a new real estate model is introduced that is becoming more popular as the commission rates are lower than the regular rates. The words are widespread in the market about “low commission real estate agents” for their low fees.
In this article, we will discuss the current structure of the real estate commission and explore if you should hire a low commission real estate agent to sell your property in Houston, Texas.
Who is a low commission real estate agent?
Low commission real estate agents are like other traditional agents, but they charge a low commission for their services. Typically, a traditional agent charges 6%, and a low commission agent charges less, or sometimes half of 6% i.e., 3%. Saving three percent could possibly save you thousands of dollars on a big property sale.
Low commission real estate agents are licensed and can offer you full- services or limited services for less commission. Before signing an agreement, you’ll need to discuss what services you will get.
You can also contact low commission real estate companies to understand their commission structure and what they offer.
Reasons to consider hiring a low commission real estate agent?
Low Commission agents are sometimes considered to fall in the category of discount agents, typically charging 1 to 2% of the listing fee inclusive of a full-service package to sell your home, just like a traditional agent does for 3% (6% total).
Some low commission agents may offer complete service but with less hand-holding. Don’t forget to talk to your agent prior to signing an official agreement.
The below table is an example that shows the commission charged by a traditional agent and a low commission agent. You can see the difference in the commission structure and the potential savings you can do when your home gets sold by low commission realtor:
* Table is based on 6% traditional realtor commission and 4% low commission realtor commission.
While representing the buyer, some realtors do charge 1-2% more on the commission charged to list your property.
We have listed a few more reasons why you can consider hiring a low commission real estate agent over a traditional agent when selling your home:
Many home sellers understand the potential savings they can have with a low commission real estate agent. Paying less and getting your home sold is a factor of consideration for low commission agents.
However, there is a possibility that you will not receive a full-service package of services from a low commission agent, unlike a traditional agent who offers an entire package for 6%.
Talk to your realtor, or find the best real estate brokerage in Houston that offers full service for a low commission, just like The Jay Thomas Real Estate Team that offers entire service for just 2% while representing the seller, such as:
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Full-service agent representation
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List on maximum MLS
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Schedule Photography
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Place a sale sign on the property
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Place a lockbox on the property
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Market property
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Schedule property tours or virtual tours
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Professional assistance and Inspections
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Prepare all documentation
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Negotiations
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Handle the closing
Are low commission Real Estate Agents Reputable?
Yes, the low commission realtors are reputable and are widely contacted by people who don’t want to pay a higher commission. Just like other business deals, you’ll have to do some market research, ask some questions to your agent, check their past performance, check their online reviews, and ask your connections for any recommendations.
How To Verify Your Low Commission Real Estate? Do the following activities:
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Check if their website contains the legit information
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How long they have been active in the real estate industry
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Compare how strong their profile is, among other competitors
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Check the online reviews if they have the positive feedback
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Search the brokerage websites to check out their market presence
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Crosscheck if they offer the exact services they promise
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Check their previous sales record and a current listing on MLS
Should you hire a Traditional or Low Commission Agent?
Despite multiple home sale options available in real estate, many sellers still go with traditional real estate brokers. The sellers consider traditional agents more skilled for home selling transactions and can handle the sale from start to finish. From listing on the MLS to negotiations, sellers find it peaceful having traditional agents on their sides. But don’t forget their service comes at a cost, and you’ll have to pay a full commission.
But that doesn’t keep low commission realtors out of the race. With a little research and by talking to the agent, you can find yourself an agent like Jay Thomas, who offers you full service at a low commission rate without any hidden costs and can willingly sign an agreement with you. This saves you thousands of dollars.
