Why Discount Brokers Are a Smart Choice in Houston’s Real Estate Market

September 28, 2024

I have spent the last 18 years moving around Houston, Texas with an ever-changing real estate industry. One of the growing trends I have seen is more use of discount brokers, and I want to offer some insights to prospective homebuyers as well as sellers about its benefits for your vibrant community.

Let’s begin by looking at what discount brokers actually are. Simply put, they provide the same key services as traditional brokers but at a much lower commission. This is a game changer for those who are looking to buy or sell a home in Houston, which has one of the strongest real estate markets in the country.

Cost Savings

There is no question that the biggest benefit to using a discount broker is cost savings. Commission traditional real estate brokers charge a percentage of the home’s sale price, usually around 5–6%. In contrast, discount brokers typically charge far less — 1-2% (or a fraction thereof). While this may not seem like a lot for lower-valued properties, it can add up to quite significant savings when you are working with high-value homes in upscale areas. Just think about what you could do with that money: keep it in your pocket or use it as a down payment on your place?

High-Quality Service

While many believe that using a discount broker means they must forgo service, this is notthe case. A lot of discount brokers are experienced and have adopted this model to reach more customers. That being said, they still have more knowledge and experience than you have in this field, so you will always get the help you need at each step of the process. That happy marriage of cost-efficient pricing and fantastic service appeals directly to a place like Houston, where the market is both huge and hyperactive.

Flexibility and Customization

Further, discount brokers provide a flexible and customizable approach to the stock market. Not all brokers serve the same dishes, but discount brokers typically cherry-pick from their more premium offerings. That means you can customize which services you want — like listing your house on MLS, managing negotiations, or paperwork. There are a lot of factors that can play into what makes one or another option more beneficial, and for others, it is not a benefit to do a cookie-cutter type of program.

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Access to Advanced Technology

Most discount brokers take advantage of new technology to make the process of buying or selling an investment much easier. This means using complex online platforms, virtual tours, and other digital marketing strategies that allow you to present buyers with your property. Finally, if you plan on working or opening a business in Houston, TX where your industry is becoming more technology-driven, having a tech-savvy broker may very well become the differentiator that puts you ahead of your competition.

Enhanced Market Reach

They also have a large network and are dealmakers in the market. Sure, their commissions are likely nominal compared to ours but with the number of transactions they do — many top teams have a seven-figure business and deep market penetration just like us professional realtors. For example, access can be a tremendous asset when dealing in such an active market as Houston’s where connections and local knowledge offer tangible benefits.

Overall, traditional realtors continue to be indispensable, but the emergence of discount brokers provides an attractive option that should not be ignored. Houston homebuyers and sellers will be able to save money on the process while still getting expert guidance on their investment. In my 18 years of watching this city continue to grow, I can also happily report that it’s exactly such creative ways to overcome the odds that keep Houston’s notoriously rambunctious market both healthy and vital.

Hello! I’m Jay Thomas, a REALTOR in Houston, Texas. Chances are you and I share a similar passion, Real Estate! I also have a passion for building businesses, working out, inspiring others, technology, sports, and people. Connect with me on Facebook and Instagram!

Hello! I'm Jay Thomas,