Why ‘Discount’ Real Estate Companies Are Growing

Let me address something right up front:  Help-U-Sell Honolulu Properties is not a discount real estate company! We are a progressive, full-service real estate company that charges differently for our service. That difference – our Low Set Fee pricing – is much less than what most ordinary real estate companies charge, but our clients give up nothing when they take advantage of it.

The problem with ‘discount’ is that it implies that the customer must sacrifice something.  At T.J.Maxx you may pay less for an item you could get at Macy’s but you give up selection, assistance, ambiance, and more.  It’s a trade off.

That’s not true with us.  At Help-U-Sell Honolulu Properties, we do everything any great real estate company might do – and more – but instead of a big percentage based commission (like, say, 6%), we charge a Low Set Fee.  Our home sellers save thousands over what they might pay anybody else and still receive full-service and excellent care.

There has been some research done recently about what part of the residential real estate market is being handled by ‘discount’ real estate firms.  Since we charge less than ordinary companies, we get lumped in with the discounters (can you tell this burns me up!).  Still, I believe there is some wisdom in the reports I’ve seen.

Today, 65% +/- of home sellers are listing with traditional, full-fare real estate companies.  The remaining 35% of sellers are seeking less expensive alternatives.  About a third of them sell By Owner.  Two thirds sell through a discounter – like, say, Redfin, who charges less but also limits the level of service – or through a company with a different and better idea – like us!

It is true that the numbers seeking alternatives to high percentage based real estate commissions are up and growing, but what’s important is why.  Why are people seeking less costly alternatives?

The obvious first reason is that regular real estate commissions are absurdly high.  Here in our own neighborhood, sellers are routinely paying regular real estate companies $35,000 – $50,000 or more to sell their homes.  If that doesn’t motivate you to look for alternatives, nothing will!

The second reason is they don’t think a full-service real estate agent is necessary.

Let that sink in for a moment.  It’s a little startling to me.  I work in this business every day and the landmines and complexities of selling a house today are plentiful and scary.  I don’t recommend anyone attempt it without expert assistance.  But $35,000 +?

What that second reason is telling us is that the Internet has put many of the tools REALTORS(r) used to use into the hands of consumers.  That’s a good thing.  Our processes are far more streamlined today because buyers and sellers can participate in the process.  Buyers and sellers find themselves doing some of the work agents used to be paid to do, but there has been no corresponding reduction in what ordinary brokers charge.   It’s a disconnect.  It doesn’t make sense.

What makes sense is Help-U-Sell Honolulu Properties where we take extraordinary care of our clients, shepherd them carefully through the transaction and then save them thousands of dollars in real estate commissions.

If you’re fed up with the magnitude of regular real estate sales commissions, let us explain what we can do for a low set fee.  All it takes is a phone call.

Help-U-Sell Honolulu Properties is a full service real estate company that provides exceptional service while charging less than ordinary Realtors.  We’ve been successfully helping buyers and sellers all over Oahu for more than 12 years and we’d be delighted to help you achieve your housing dreams.  Contact us at (808) 593-8811, or visit our website.