Once you have decided to sell your house with an agent, there are two options: a full-service or a discount real estate agent. What is the difference between full-service and discount agents? Each one has its pros and cons. They each bring different skills and services and will charge you different amounts for their services.

Before you dive into our comparisons, it is a good idea that you review how traditional realty commissions work. This is how full-service agents get paid. Leaving this model is how discount services were created. Here are some quick facts about real estate commissions and the difference between traditional real estate agents and discount real estate agents.

Real Estate Commissions

After the sale of a home, real estate agents make their commissions. After the sale closes, the listing agent earns commissions from both parties. The listing agent typically earns 3% and the buyer’s agent 3% for a total of 6%. However, this is not always true and numbers can be negotiated.

Although commissions remain a common practice in most real estate transactions, technology has made it possible to offer more options for selling a home or running a real estate business.

What’s the Difference Between a Traditional Real Estate Agent & a Discount Real Estate Agent?

Real estate agents are experts in buying and selling property; they’ve been doing it for over one hundred years! However, not all agents are equal. They may charge different rates or offer the same services. Brokerage and discount agents give home sellers more control over how their home is sold and how they are paid. It is important to know the differences and be able to determine what services are required to sell your property.

Full-Service Agents

Agents who provide full-services take part in the transaction and supervise it from start to finish. They guide their clients through every step of the process, answering all questions and explaining everything in a way you can understand. Full-service agents can provide clients with peace of mind and confidence due to their ability to boost the value of your home. Full-service agents are trusted advisors and available 24/7. Weekends are their busiest times.

Full-service agents offer many services including decision-making advice, local data and tools to price your home fairly, property listings on MLS, recommendations for other real estate professionals, negotiation assistance, navigation of paperwork, and more.

Discount Real Estate Agents

Full-service means that all details of the transaction are taken care of, and the client will be satisfied. While a discount usually means that you pay less, you may not be able to get all the services that full-service agents offer. How does this affect real estate agents?

A discount real estate agent can assist you in selling your home like any other traditional real estate agent. However, they are paid differently than the traditional 6% real estate commission that full-service agents are paid. A discount is offered by taking less commission than usual (or none at all) which allows the seller to keep more money in their pockets! 

Just keep in mind that you may receive fewer services if you use a discount agent and be obligated to give home tours, open houses, take care of staging your home, or take phone calls all on your own. This may just be something you are looking for.

Different Types of Discounts Offered By Discount Real Estate Agents

There are three ways to get the discount that discount agents offer: flat fee, a discounted percentage of the home’s sale price, or one of these options combined with a la carte options or other packages.

A flat-fee service contract clearly states what you will get and that you agree to pay the fee. A listing on the MLS, basic photography, flyers and one open house are all possible. There is also availability to do more than this.

Another option is to choose an a la carte option and only pay for the marketing services you need, such as MLS listing, custom photography, and CMA.

How Do I Know Which Type of Real Estate Agent to Hire?

There is no one-size fits all solution when it comes to selecting a realty agent. All the pros and cons must be considered and weighed.

The most important transaction in your life is the sale of your home. Full-service agents who work with full service brokerages can help you get top dollar because of their marketing skills, knowledge, and experience.

On the other hand, a discount real estate agent might be able to get you the same results or better in a seller’s market. You’ll also save some money! It could be the right decision depending on your circumstances. You decide how involved you want to become and how valuable that time will be for you.

Conclusion

Before you hire an agent, make sure you check their track record in terms of sales and performance, ask family and friends for recommendations, and meet them more than once face-to-face. All these steps will ensure that you hire the best real estate agent for you whether they are a full-service agent or a discount real estate agent. Good luck with your home sale!