The old Argument - Do brokers actually get you more money?

Being a licensed broker, I can answer this question beyond a shadow of doubt. Many brokers will criticize my opinions but I’m excellent at what I do. I’ve over 7 years experience and have continued to prosper yearly based on my abilities and skills in the market.

In today’s age, the Internet provides a mass amount of free information giving the FSBO the ability and resources, to make more money on their own than with a broker. The key number to consider is “net” monies NOT “gross” monies. A broker may be able to get you a higher asking price but when you factor in their 6% commission fee, it generally will net the seller with less money since the seller has leeway on their pricing. (See blog posted on pricing)

The main problem or “trap” a seller falls into, is that they don’t follow the proper way to price their property using the “comps” available to them and completely overprice their property. As I stated within my blog regarding Price vs. Time, price goes down the longer the time the property is on the market. A good majority of brokers have no concept on how to price effectively and will say anything to get a listing – working on a commission based salary usually will bring that out.

If a seller prices his or her property smartly with like “comps” and just under similar broker listing prices, they will always net more than working with brokers because their property will be a such a deal. Today’s buyers are very savvy and research in-depth; they know whether a property is a great deal or not.

The main issues for FSBO’s: a) proper pricing, b) providing high quality photos and floor plan, c) executing a marketing plan, d) confidence in showing their own space, and e) handling communications with Co-op boards, if applicable. All these obstacles and issues can be overcome with my advice and coaching.

Brokers aren’t the gatekeepers of information anymore. This allows for more transparency and greater abilities to sell for more money. This is especially true for buyers that recently bought a property and now want to sell after maybe a year or so. As year-to-year appreciation flattens out, it’s almost impossible to break even with broker commission fees and closing costs.

The brokers major advantage is that they band together all of the companies listings into a destination website that generates traffic flow. This in-turn provides brokerage firms with a marketing advantage over a single FSBO, as the FSBO doesn’t have a centralized marketing platform.

Coming Soon! I’m developing a website that’ll mimic the advantages of big brokerage firm websites by banding FSBO only listings together to gather market share and traffic. This website will offer pertinent information on how to sell on your own, while providing professional support when needed.

I don’t think brokers and brokerage firms will necessarily like what I going to provide to the FSBO community but I think this market deserves a choice on how they want to sell their property.

Ultimately, the seller has a choice to either sell on his or her own (which is what No Brokers Please! is all about) or rely on working with a real estate broker.

Note: If you choose to work with a broker, make sure that you do all the necessary research in finding the most valuable one; one that is willing to put your needs ahead of theirs.