How Discount agents like Redfin and others short change clients
First off, I love saving money and who doesn’t. I believe that a penny saved is a penny earned especially when it comes to real estate and repairs. The problem is you don’t know what you get until you try it for yourself. The website looks great, they offer huge rebates, they have catchy slogans and slick looking signs so what could go wrong? What does an agent do anyways other than sit around a wait for a buyer? If you ever had those thoughts then you have not experienced the difference between the good and the bad. As a broker a good part of my business comes from frustrated sellers and buyer’s who didn’t get anywhere with their current realtor.
Just like cheap food, cheap shoes and more, you get what you pay for
This sums ups the consumer experience and why the discount model fails. Everything looks so good and they sound so professional so what could possibly go wrong? Everything. First off, this is one of the largest assets you own, real estate, so you want to make sure you working with someone who knows what they are doing every step of the way. If not you get the discount low grade “team” service that you paid for. This is where a smart talented man or woman will wow you with all the services and technology and with such a low price to boot. They blow by a couple minor details and get the contract signed, shake your hand and that is the last time you see them. From there the file gets handled not by a licensed realtor but some assistant getting minimum wage. Your property will sit there until you get a call from the agent again. Not to say hello but to tell you to lower your price but offers nothing in return. Please sir, take $50,000 off the price but pay me the same.
The team “members” each have a small job but no one person is overseeing every detail so things get missed. these team members are not necessarily licensed agents, they can be using an overseas call center most of the time. Sometimes the things that get missed by your assistant “Handler” can cost you thousands of dollars and law suits. Other time there are things that they miss because the agent you thought was so strong turns out to be a wimp when it comes to negotiating the price and repairs.
Some people love it, they prefer to save money and be more involved. That is why I offer the same exact service but I tell people well up front that I will not be focused on their sale, that is the teams job. If you want my attention you have to pay full price.
So bargain hunters beware, do your research first and make sure you compare apples to apples or you might regret that discount later.