Will a Local Broker
Provide Adequate Service?

Question: We are planning to put our $290,000 home on the market. An agent from a major franchise company tells us that the commission for selling our home would be 6%, or $17,400. A local broker who is not with a national firm says she will list our house on the Multiple Listing Service for just a 4% commission, 3% to the selling broker and 1% to her. The 4% commission would be $11,600, and save us a lot of money. Does it pay to use a local broker who charges a smaller commission? She says that she will handle all of the paperwork, but will we still get the same service, and will she be able to deliver a buyer?

Jane: Your question is one being asked by sellers across the country. There are two parts to it: the first has to do with service, and the second, with finding a buyer.

No, you can't expect to get the same service from a discount broker that you would receive from a full-service agent. Typically, for the discount, you will have to do some of the work. That may include paying for advertising, showing the house yourself, negotiating with potential buyers and managing the escrow. In your case, the agent has apparently agreed to handle the documentation, but in some cases that also falls to the owner. It's important to remember that few things in life offer a free ride and real estate is no exception. Someone has to do the work. If you pay full price, the agent will do it. If you get a discount, you'll help do it.

The answer is somewhat different with regard to finding a buyer. Your agent will list your house on the MLS and will pay a full buyer's commission to the buyer's agent. In that case, you can expect agents who have interested buyers to bring them by. However, your listing agent probably won't be promoting your property by touting it to other agents, holding broker's-only open houses or organizing agent caravans. This could slow the process of finding a buyer.

Ultimately, if your house presents well and is correctly priced, it should sell. The difference with using a local broker is in how much of the selling work you do and how long it takes.

Mr. Irwin has more than 25 years' experience as a Los Angeles-area real-estate broker. He is the author of more than two dozen books about real estate and is recognized as one of the most knowledgeable writers in the real-estate field. Mr. Irwin's most recent book is "Buy Your First Home," (Dearborn, 2000).

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Jane, Denver

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