The recent years have brought on an onslaught of so called discount brokers even though this really does not exist. There is no set price by law that an agent will charge.  None the less, average commissions range from 5-6% nationwide.  So as the Sellers market grew, hiring an agent at these rates became less neccessary and new real estate companies sprang forth charging less and giving less.  But now, the tides have changed.

A few weeks ago I attended a nationwide real estate conference in New York City.  The Fairfield County real estate market has been running from a 24% to an 84% increase in inventory depending on the actual market (ie: condos, individual towns, etc.).  I felt incredibly lucky in our market while meeting agents accross the country who where experiencing numbers like 300 and 400%!  The unanimous finding?  We need buyers! 

 So here's the difference in the so called discount brokers verses full service.  And I mean just that, FULL SERVICE!  The discounter discounts the commission for a discount on service.  That means less advertising, less internet, less MLS, less negotiating skills and largely inexperienced agents.  Here's an example of what I mean. A home was listed on the MLS in my market and listed for open house tour for agents.  I happened to be the first one to arrive.  The person there was obviously clueless but trying her best.  The home was listed for 1.4 million and it turned out to be the owner that was present.  She typed up her best at a handout that I found obvious errors in.  She never checked her data with the city.  I asked why her agent had not better prepared for her (not knowing about the discount situation) and she told me that he was marketing it at a cut rate and so she was doing this herself.  I pointed out the legal ramifications of her errors.  Her eyes widened.  This is not uncommon.

 Months later this home is still unsold.  In a buyers market an agent must be aggressively seeking out buyers.  Placing a home on the MLS is no way enough.  According  to the National Association of Realtors, 74% of home buyers are finding their new home on the internet even before they contact an agent.  A good agent will have multiple web sites seeking different types of buyers.  Ask your agent if they know what a stealth site is and if they are using one.  Are they advertising out of your immediate market area?  For example, my market is located 40 minutes outside of New York City, so my Team spends about $5000  for a page in the New York Times Magazine almost every month, and the phone rings every time it hits. 

So think about it.  All of these internet sites cost money, the advertising costs money, obtaining and keeping buyer leads, costs money!  A good agent is spending alot on marketing your home out of his or her own pocket. In a market place where we have more homes on the market than in many years, the competition for a buyer is fierce.  Pricing, is as always important but just as important is how your home is marketed.   

If you choose to try out a dicounter, give yourself a month.  If it does not sell, interview a specialist in your market area.  Ask lots of questions and make sure you get a marketing plan in writing.  Don't be afraid to interview more than one agent and remember price is important, relevant to the competition and marketing is just as important in finding the buyer that will pay the highest market price for your home.

 Victoria Lorusso is a prominent agent with the Lorraine Leonard Team serving Fairfield County, CT. which includes the towns of Greenwich, Stamford, Darien, New Canaan and Norwalk.  You can reach her web site at www.HomesofFairfieldCounty.com.