When times are tough, we sadly see all sorts of discount brokerages popping up. Who wouldn't want to save money when they have to sell their home in a depressed market?
However, are you really going to save money? The old adage "you get what you pay for" isn't that out-dated.
We recently sold a home to a person listed with a discount brokerage. The home was listed at $419,000. Our clients told us that they didn't want to go higher than $410,000 on the property.
We went in with a lowball first offer - $380,000, and with a term that we (the brokerage) be paid a commission of 4% on the first $100,000 and 1.5% on the balance.
We presented the offer in person to the client and he immediately said "oh, I was hoping to get $385,000 in my pocket and…