Posted by: nelyacalev | July 1, 2009

The thing about discount brokers

As I have mentioned before, my husband participates on a large alias at his work where people ask questions about homes and real estate.  Over time, he has noticed that a huge number of them will not even consider a full service 3% agent.  They want discounts and many of them use Redfin or a discount (1% agent).

In the beginning, he attempted to dissuade them and explain what you get with a true full service agent.  To be honest, I doubt he really convinced anyone.  I also used to spend a lot of breath trying to explain this, but the truth is there are some people you will never convince.

My in-laws (who I hope are not reading this) have done their own taxes for years.  Every year they get walloped with a huge tax bill and every year the process takes them a significant amount of time because they own businesses.  I for one have never done my own taxes, but take them to a tax expert.  I pay around $200 each year and have always received a very nice refund.  Our tax professional is very knowledgeable about recent changes in tax laws and always does a good job.  I am sure I saved a lot of money doing this.

However, we will never be able to convince my in-laws to not do their own taxes.  This is just the type of people they are.  They do not trust others with their financial business and probably never will.

This is why there are some people I just will not be able to convince about discount agencies.  I can try explaining that it is almost impossible to buy a hot REO property with one of these agents, that most if the agent can’t even negotiate a 3% fee for themselves, how confident are you that they can negotiate for you?  I have tried to explain how full service agents go the extra mile, are more knowledgeable, and will almost always save you money in the long run.

There are people out there that simply want to do it themselves.  So if you want to do your own taxes and your own dry cleaning, discount agencies are the way to go.

In some respects, it’s not a bad thing that there are such people out there.  People like this allow me to win big concessions for my buyers/sellers when I am on the other side. :)


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