what are the main disadvantages of using a discount realtor like 1% realty or red fin?

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I have not worked with those firms, nor have I heard a client mention them. These firms are similar to traditional real estate brokerages, except for their commission/fee structure. The New York Times regularly runs articles on Redfin, which they paint in favorable terms. The disadvantages seem to be similar to any service firm: how well does your contact person serve you. The reports of customer service have been good at firms like this, but I have found that the service that you receive is reliant on the person that you deal with, and eventually every company has a failure on this front.

Answered by Frank Schulte-Ladbeck on December 4, 2007: Profile | Contact | Website

Obviously if it's a discount office, you will save money. However, that "savings" will cost you in the long run when you make house payments longer than the average time of Realtors hired from RE/MAX, Keller Williams and Prudential, to name a few. I'm not saying discount firms are bad, they aren't. I'm saying that the branded firms spend millions of dollars to advertise thier brand so that when that sign is in your yard, it WILL be recognized and it WILL sell. We also have a much larger network of agents stretching from East Coast to West Coast to International. Lastly, I'll use RE/MAX as an example (that's who I am with), I have "skin in the game", meaning I MUST sell your home in the shortest amount of time possible so that I can get a return on the money I have fronted to market your home. That can be anywhere from $300 up to $1,000 (depending on the price of home). It is in MY best interest to sell your house asap. There are agents out there that place your home in MLS and put a sign in the yard and hope for the best. Fully commissioned agents don't have that luxury. We have to sell your house in the shortest amount of time and move on the next; that's the best thing any seller could want to hear from thier agent! "I MUST SELL YOUR HOME ASAP"!

Answered by Erin Young on December 30, 2007: Profile | Contact | Website

Some discount brokerages can leave you with just a yard sign and a listing on MLS and hope that your home sells itself, but not all discount brokerages work this way. I think it's a matter of working smarter and not harder. I'm a full time broker (100% commissioned) and own a discount brokerage, BUT provide full service. With the internet and being able to advertise on the web, many time consuming processes have been streamlined and this can mean less commission is necessary to market and successfully sell your home. If interested, please contact me for more information on selling and buying.

Answered by Jill Aylwin on April 11, 2008: Profile | Contact | Website

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