Home sellers face many choices when listing their property for sale today – but one of the most common is whether to hire an experienced, traditional real estate agent or go with a technology-based discount brokerage that says it will use “artificial intelligence,” “machine learning” or other programmed approach to find the right buyer. In many areas, traditional agents offer discount commissions while delivering full service, so it might be hard to determine which option has the best potential for delivering the best bottom line deal to sellers. Let’s look at typical traits of each and see which might be the best fit for your sale.
We’ll use Cordon Real Estate as an example of an experienced, traditional broker. John Souerbry, Broker/Owner and REALTOR®, entered the real estate industry almost twenty years ago and has successfully represented sellers of homes, land, apartment buildings and many unique and “hard to sell” properties while charging deeply discounted commissions. For our technology-based discount brokerage we’ve borrowed traits from several companies we’ve heard advertising and from comments shared by past clients (note: some technology brokerages actually have a gag rule that forbids their clients from discussing their sale experience with others, good or bad). Let’s compare the two head-to-head.
|Traditional Real Estate Agent||Technology-Based Broker|
|Shakes your hand, looks you in the eye, walks your property with you. Listens to your needs in your own words.||Computer is installed in a cold, dark, server farm it never leaves, never sees your home. Fill out a form to communicate.|
|You meet the agent you hire.||You are assigned an agent for limited services.|
|Nearly 20 years experience.||Many now advertising have been in business less than five years.|
|Implements creative campaigns appropriate for your property – on and off-line. Presents your property at local agent marketing meetings, talks up your property wherever they go.||Advertises on the Internet based on recent sales data in local markets.|
|Frequently uses out-of-the-box negotiating techniques to outflank the opposition and give clients a negotiating advantage.||Runs an algorithm.|
|Discount commissions – full service activities and results.||Discount commissions.|
|Tracks changing market conditions during the listing period – suggests strategies to take advantage of them.||Gathers market statistics.|
|U.S. Army veteran.||Can’t do one push-up.|
|Serves his community as a volunteer with Sheriff’s Department Search & Rescue Team.||Can only search the Internet.|
Whether your sale requires that you hire an experienced real estate agent or you can get by with a discount broker, choose carefully.