The Real Estate AF Blog - The Incredible Edible Discount

The Real Estate AF Blog

The Incredible Edible Discount And What It Actually Costs You

Good morning folks. It's Saturday morning and I've got big things happening today, so I was up before 4am, working on some information gathering and pro formas for clients. That's not a "tale of woe". I woke up refreshed and ready to make shit happen. Besides that, the dogs were farting and I needed to get out of my bedroom. Anyway, ahead is a "tale of whoa" (see what I did there) that came out of this morning's research. I call it a tale of whoa because when I saw what I saw, I gasped "whoa!" 

Now on with it...

Have you ever wanted a certain product and when you went to buy it, you decided to get the discount version instead... but then you were disappointed with said product?

I used to make that mistake and I don't blame anyone for also making that mistake, especially if they don't have the experience with the product/service for which they are shopping. However, I'd encourage anyone looking for products and services to look not just at initial price, but at overall value. That discount might seem like a good idea initially, but what is it really costing you? 

I’ll share an example from the real estate industry in a minute. (You didn’t think I was going to write about gardening or motor vehicles, did you?) 

Being on social media, I see when folks I'm associated with buy or sell real estate without my help. While I wish I'd been interviewed to possibly represent them, I'm not offended when it doesn't happen. Having said that, when I see someone list their property with a "discount brokerage" I cringe a bit for them because of obvious reasons (the point of this writing). 

Recently, some acquaintances did just that and as I was looking at comps (comparable properties) for my client, I came upon the acquaintances' outcome and I was shocked. These acquaintances listed their beautiful, above average property with a "discount brokerage" to save around 1% - 1.5% on real estate fees. “But Jeryd, saving money seems legit, right?” If it was, I wouldn’t be writing this… Now pay attention and quit interrupting. *clears his throat and gives you the stink eye… As I was about to say... The outcome was a terrible marketing strategy and a sales price that came in at a whopping 17.5% under the average on this above average property. You read that right… 17.5% left on the table, trying to save 1% - 1.5%. To put it into monetary perspective: In an effort to save maybe $5k-$6k, they left over $70k on the table in one of the worst blunders I've seen in awhile. Can you say “Stepping over dollars to pick up dimes”? I truly feel bad for them. 

Here’s the bottom line for the kids in the back who weren't paying attention again: The "discounts" often come at the cost of education, experience, marketing resources and good ol' fashioned grit, which will almost always result in big losses. Do you really want someone who leads with "Hey, I'll give away my money if you let me negotiate on behalf of your money" to put your financial wellbeing in their hands?

Here's the way I see it… (the pitch)

There are a lot of options to choose from when you're looking for help buying or selling real estate. I get that. Just because you know me/of me, you don't owe me anything, you certainly don't owe any other broker/agents anything, but you do owe it to yourself to get the best representation possible on the biggest financial transaction of your life and that's what I'm offering. 

** Why do I call it “The Incredible Edible Discount”? Because you’re eating your potential profits and it was a nicer title than “Bend Over And Get Your Discount”!

Written by: Jeryd Smith, Founder of WA Home Hunt and a real estate broker, licensed in Washington State. Is he an idiot or a genius? Who knows, but he is opinionated and that's just what this writing is… his opinion. Nothing more, nothing less.