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Should I hire an agent willing to work for 1% commission?

Do discount real estate agents do everything the full price ones do?
Asked By Sally R. | Ola, ID | 804 views | Working With An Agent | 2 years ago
Answer(13)
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Pro
91 Answers
Lisa and Greg Harris

eXp Realty, LLC

(42)

What makes you ask about 1% is my question. Are you worried about the amount the agent is making or you are netting from the sale? If yo are looking for a discount broker, do you expect them to negotiate and work as hard as an agent that knows their value and works for their commission? If an agent can get you the net you want, and still make full commission then what the agent makes does not matter! If an agent is willing to give away their worth before they have even negotiated on your behalf, how quickly are they going to negotiate your equity away on your behalf? You get what you pay for! It is about what you net and if they agent charges you 10% but over-delivers and gets you what you want out of the sale does that matter?
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Semi-Pro
83 Answers
Marty & Abby Champagne

RE/MAX Market Place

(33)

1%? Umm... How is that agent going to pay the buyers agent their commissions? or any advertising? This agent would be taking a loss. I see a red flag here.

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Semi-Pro
47 Answers
Lynne Pruell

Realty 100 LLC

(16)

An agent taking 1% is not making a lot on the transaction. There is no room to properly advertise your home. Advertisement, professional photographers, virtual tours, etc all costs money. I would read the listing agreement carefully and find out exactly what the realtor will be offering before you sign the agreement.
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Rising Star
19 Answers
Al Maxwell

eXp Realty

(60)

That is certainly up to you. The commission paid to the listing agent is split up in many ways. The agent usually has to share this with his/her broker first of all. Then the agent uses the remaining amount to market, list, follow up and a million other things behind the scene. (And pay Taxes)
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Rising Star
12 Answers
Melissa Key

Woodland Realty, Inc.

(64)

The answer is NO! Discount agents also discount the amount of services they are going to provide to you. Do you feel comfortable using a "discount" doctor, dentist, CPA, or attorney? Probably not. They may be a "discount" type of job. Go with a great Broker or Agent that offers all the services you need. Best of luck!
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Novice
7 Answers
Brian Sullivan

Highgarden Real Estate

(7)

You get what you pay for.
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Novice
6 Answers
Jessica Owen

eXp Realty LLC

(9)

In most cases, discount agents do not offer as much as full price agents. Great marketing, photography, signs, print materials, etc are not cheap and on top of that, we are motivated by our income- that is how we take care of our family after all- so knowing that my clients are paying me well motivates me to go above and beyond for them in all aspects. However, I do know some discount agents that work very hard. I think you would just need to interview them and make a decision based on how you feel after, and make sure to read the fine print. Sometimes discount agents have hidden fees that make up for the gap in commission. Good luck with your sale!
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Novice
6 Answers
Anne Kofsky

Coldwell Banker

(73)

I have never seen that. Discount commissions come with discount services. The old saying, you get what you paid for is very true.,
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Novice
6 Answers
Tony Ayoub

Re/Max College Park Realty

(17)

These are discount agents they just salp the house on the MLS without a good picture or an open house, you need an agent that can bring you the most money, the commission is an investment, not a fee .
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Novice
3 Answers
Christopher Scialpa

Easy Home Sales LLC

(1)

1% is a tuff number to work with, because we have to treat the buyers agent fair in order to help the sellers get what they are asking for.
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Novice
3 Answers
Zakk Varughese

HomesRX

(16)

In general, agents who are willing to work for 1% are those agents who are inexperienced. You want an experienced agent.
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Novice
2 Answers
Nicole Mayfield

Miller Homes Group- The A Team

(8)

In most instances, if they are discounting their commissions that much, they are likely discounting they services too

More Information

  • Beware of Discount Real Estate Agents

    Agents Work On Commission

    This means that they make a percentage of the sale price of the home. Commission jobs assume that the work of the agent helped sell the home and achieve the price it sold for. That is why they typically get a commission and not a flat rate.

    Because of this, many home buyers and sellers look for discount real estate agents. Discount real estate agents are agents that are willing to accept a commission rate that is below what is expected. The typical percentage an agent makes is 3% the sale of the home.Some agents will give a discount and still offer the same level of service. This might happen if they aren't fully booked, are just starting out or have another strong desire to work with a specific client.

    Discount Agents Often Discount Service

    If an agent is offering a rate that is well below average, for example an agent is willing to work for 1% commission, this could be a red flag. The old adage, you get what you pay for, is true in real estate. Agents that offer steep discounts might be having trouble getting clients.

    Great Agents Are Worth the Price

    Top real estate agents don't have to offer a discount because the value they bring to a client is worth the price they charge. So if you are looking for a real estate agent, beware of discount agents and brokerages. There is usually more to the story than just a good deal.

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