Interesting article at Yahoo! Biz today:
Discount real estate brokers: Get what you pay for?
You’ve worked hard for the money — the equity in your house, that is, and now that you’ve decided to sell you’re reluctant to give a traditional real estate broker a whopping 6 percent commission for bringing you a buyer.
The good news is you don’t have to. You have options, and one of them is to sign on with a discount broker, a licensed Realtor who is willing to shave off 1, 2 or more percentage points.
In recent years, a bevy of discounters has sprung up across America. They have shaken up the real estate industry by offering real estate brokerage services for less than the traditional 6 percent of the selling price.
In many cases they also provide somewhat less than the traditional amount of service.
But generally, they are members of the National Association of Realtors and are bound to the ethical standards of that group — and hey, who needs all that service anyway? While many sellers do need the service — as evidenced by the high percentage of them who continue to retain full service brokers to handle their deals — others feel they can get by with less involvement by the agent, especially if offered at a lower price.
Some discount brokers offer a menu of services and tailor their fee according to the menu items chosen. Others say they offer full services and simply are discounting the price.
Go to article: http://biz.yahoo.com/brn/060424/18488.html