How A Low Commission Real Estate Broker Agreement Works

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How A Low Commission Real Estate Broker Agreement Works

21 October 2020
 Categories: Real Estate, Blog

One of the challenges that homeowners face when selling their homes by owner is finding people to view the home. Advertising a for sale by owner (FSBO) house is difficult, and it can also be costly. As a result, many homeowners turn to low commission real estate brokers for help. If you want to sell your home without paying the typical commission rate, you might want to pursue this option. If you are not sure how it works, here are some details you should know.

You Hire a Low Commission Broker

The first step in this process is hiring a broker. A low commission broker is not the same thing as a full-service real estate agent. A low commission broker specializes in helping people sell homes for lower commissions, and they do this by limiting the services they provide. You must find a broker to hire for your home sale, and you will need to sign a contract with them. The contract states their services and responsibilities, and it also states the commission rate. The rate might be 1% to 3%, depending on the broker.

The Broker Advertises Your Home

The main service a low commission broker offers is advertising your home sale. As mentioned, selling a house FSBO is challenging because it is difficult finding people to view your home. When you hire a low commission broker, the broker places your home listing on the MLS. As a result, anyone looking for a home will see your listing. Your listing reaches many people, and it solves the problem of not being able to find people to view your home.

The Broker Might Also Offer Other Services

Some low commission brokers provide other services in addition to advertising a home listing on the MLS. You can ask the broker if they include other services, and they will explain the answer.

You Handle Most of the Details

In most cases, the homeowner handles most of the details of the sale. If you use a low commission broker, you will set up showings for the home. You will also show the house and work out the details of the contract.

Using a low commission real estate broker is a great way to save money on the commissions when selling your home. If you are ready for a challenge and want to list your home for sale, contact a low commission broker today.