February 5, 2024 | Selling

Are Discount Real Estate Agents Worth It?

Share This Post:

There’s an adage that says “you get what you pay for” and for most of the products we buy today this seems truer than ever. Marketing gimmicks and clever advertising campaigns might have you believe that the discount brand is “just as good” or even better then their pricier competition, but I’m sure we’ve all had some experience with the fast fashion brand that doesn’t wear past one season, some form of underperforming cheap tech, or even that no name tool that rusts or breaks right when you need it most. It’s generally an easier thing to see in tangible products; the price you pay can be more easily linked to the quality and craftsmanship of the product, and the performance or durability general aligns accordingly.

It’s Hard to Overlook a Good Deal

And although it might be more difficult to see at times in the service industry, this adage of getting what you pay is just as true, and even more important. Whether you’re talking about cleaners, lawyers, mechanics or real estate brokers, the services you employ in life are generally far more personal, and usually have a far bigger impact on you than the products you consume.

Beyond that, there is an even wider spectrum of service offerings within any given industry and the level and quality of service offered along with their results varies considerably. When it comes to real estate agents specifically, I think the spectrum widens even further.

Why a Discount Realtor Might Not Be Worth It

There are just so many reasons why you shouldn’t list your property with an agent who is quick to offer discounts and cut costs, but I’ve made more than a few presentations to homeowners who at first believed that any agent could sell their property and had the sole aim of hiring the cheapest agent. In my experience, this type of motivation seems to be correlated with an underlying belief that their house is worth what it’s worth regardless of the listing or presentation of the property, and any upfront savings in commission will net them more money overall.

But this is just not true, and I have seen tons of poorly listed properties sell for far less then they could have with the proper representation. In fact, many of these discount listings become targets for bargain hunting buyers and although the seller may save on the commission upfront, they end up walking away from the deal with far less in hand.

Before choosing a Realtor to represent you in the biggest transaction of your life, it’s important to do some research! Check out some of our case studies to see the success our clients have experienced right here:

The Challenge with Finding a Real Estate Agent

The challenge with real estate services in particular, is that it’s not a service that consumers use very often and it’s very difficult to rectify a mistake once you’ve made one. The average time between purchases for homeowners is 7-10 years and there’s no second chances once you’ve listed and sold your property.

It’s not too difficult to understand why you shouldn’t entrust one of your largest assets to someone who doesn’t love what they do, work at it full time, our even needs to sell your property regardless of the offer received. But as crazy as it may sound to a lot of people, there’s always going to be Sellers that opt for a discount service either because they don’t care or don’t know, just how high the stakes can be.

How TRG Goes Above and Beyond

In my own experience after detailing what exactly we do for our clients and how we’re able to impact their net result, almost everyone makes the smart decision to list with us over the “discount” guys. And we’ve talked at length about what sets Toronto Relaty Group apart from the rest and what to expect from a full service agent, but at a bear minimum a full-service agent should be offering some form of the following:

  • Market Analysis
  • Property Preparation
  • Professional Photography
  • Marketing and Promotion
  • Negotiation and Transaction Management

What is full-service anyway? Read our blog right here to find out.

Of course, not mentioned here is all the other intangibles like the level of service and communication provided while working on these deliverables, or the brand and reputation among clients and colleagues that further differentiate brokerages in Toronto, and what Toronto Realty Group has become renowned for.

The moral of the story when it comes to finding the right agent, and more broadly finding the best services in general, is perhaps to do your research, know exactly what you are getting for your money, and maybe to quote another adage; not judge a book just by its cover.

Give us a call at 416.642.2660 or email admin@torontorealtygroup.com to learn more about the TRG difference today!

Written By

Chris Cansick


p: 416.878.6657

e: chris@torontorealtygroup.com

Want More Insights From TRG Experts?

Sign up here to receive Insights Magazine delivered to you. This resource is full of market advice and industry intuition from our team and colleagues to keep you up-to-speed on the ever-changing Toronto real estate market.

Get Your Copy