How Do Discount Brokers Work?

Discount brokers typically charge less than full-service brokers.

Most home buyers and sellers are interested in saving money. Discount brokers offer lower prices. But with those lower prices generally come discounted services as well. Don’t expect discount brokers to spend a lot of money on advertising / marketing your home or be available at your beck and call.

For some sellers, discounted services are worth the discounted price. You may hear from others horror stories of expired listings or worse, selling for too little when a full-service broker might have commanded a higher sales price. Like with most things in life, you often get exactly what you pay for.

If it’s a hot market, though, and homes are selling within days, a discount broker might save you a lot of money. On the other hand, if you aren’t getting any showings through a discount broker, it’s possible that selling agents are boycotting your listing. It’s against the law to boycott a discount broker’s listing, but not all real estate agents are ethical.

In any case, don’t be confused between the fee you pay a discount broker and the fee paid to the selling agent. You will still pay a fee to the selling agent, and that fee is very rarely discounted . . . read more about Discount Brokers.

More Articles by Elizabeth Weintraub:

• Are Full-Service Real Estate Agents Worth the Money?
  
• Before You Hire an Agent
  
• How to Fire Your Agent

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