Discounts don't always get you the Best Deal

I know many home sellers want to maximize their return on investment, but going with a low commission (discount) broker may not always be in your best interest. There is a big article on the front page of the Asbury Park Press about the discount broker, Foxtons that is closing their doors and may even file for bankruptcy. They blame this on the slow housing market but lets look at the real reasons many discount brokers fail.

First off, I should let you know that I used their predecessor “Your Homes Direct” or YHD before they were bought out by Foxtons to sell my home long before I became a Realtor. I too wanted to save some money but I quickly learned that everything comes at a price. Foxtons has now laid off 90% of their workforce and clients who have their homes listed with them are getting even less than what they bargained for.

All real estate brokers want listings. The problem begins when that’s all they care about. Some discount brokers lure in sellers by the cheaper commission rates. Most sellers fail to realize that most of their agents do not actively pursue buyers. They also tend to cut out services like open houses (unless the owner is willing to hold it) and newspaper advertising. Lower commissions also trickle down to the buyer’s agents, which could have a negative affect. A lower commission won't do you much good if your house doesn't sell.

The slowing housing market is definitely affecting the real estate business abroad. Don’t be surprised to find that brokers/agents asking for a 6% or higher commission. The costs of doing business are very real for agents & brokers. Advertising, marketing, gas, licensing fees & insurance are real expenses that aren’t getting any cheaper and sellers are expecting more from us than ever. Real estate is not selling like it used to and even more resources and expenses are necessary to help sell your home.

The Mary Holder Agency is proud to say that we are not cutting back on our services for our clients. In fact, our company is reinvesting even more capital to provide you with the very best agents and services found anywhere.