Finding Value in ‘Discount’

Regarding “Cutting Costs or Corners?” by Jeff Bertolucci, Sept. 29: I used a “discount brokerage” to sell my single-family home, and have no regrets. Now I am preparing to sell my condo, and there is no way I would utilize a “full service” (that moniker is misleading) broker to do what a discount broker can do for less than half the price.

In today’s market, there is no “selling,” as the properties sell themselves. Agents/brokers are simply “clerks” at a checkout stand. The biggest threat to the discount brokers are the “full service” brokers who will do anything to protect the standard 6%, which in today’s market, is exorbitant.

RICHARD A. BOWEN

Foothill Ranch

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At any major art auction the fees range from 10% on up. A lawyer handling a contingency fee case charges 33% (plus expenses). In real estate, it is accepted practice to negotiate lower commissions before any work has been done.

An agent who has pounded the pavement for six months with buyers is not rewarded for failing to find the right house. And if he/she manages to find the right house and negotiate a sales contract, will receive a maximum of 3% of the sales price. That’s hardly “too much” for six months’ work.

As for the listing agent making 2.5% or 3% commission, the agent often had to “work” the listing for months before the owners would agree to list the property.

And even if the property sells within 24 hours, the real work begins once escrow is opened. Ask any agent. Furthermore, not all listings sell. And certainly most “buyers” never wind up buying anything, often leaving a corps of disappointed (and non-paid) agents in their wake.

SOL TAYLOR

Sherman Oaks

The writer is a real estate agent.