CMA. This typically leads to overpriced listings
that don’t sell.Discount Brokers
A discount broker is a licensed real estate brokerage
company that is set up a little differently from the typical
brokerage firm. If you’re not familiar with discount bro-
kers, here’s how they work. Discount brokers are just like
the typical brokerage firm except they lack the most fun-
damental ingredient: a sales agent!The discount broker,
then, stays out of the picture and hands all duties and re-
sponsibilities to the seller. When sellers want to list their
homes on the MLS with a real estate agent and avoid pay-
ing the full brokerage fee, they list with a discount broker-
age. Discount brokers usually charge a flat fee for
processing the listing on the MLS—something in the range
of $250 to $1,000—and the seller just pays the co-op
agent, that is, the agent who brings in the buyer. The seller
assumes the responsibility to do all other advertising,
showings, open houses, and negotiating.
The Seven Disadvantages of Most Discount Brokers
- The seller pays more than half the average broker-
age fee for less than half of the marketing services
of a full-service broker. - Agents who have a buyer for a property listed
with a discount broker usually don’t feel comfort-
able negotiating offers directly with the seller.
The Real Estate Agent’s Guide to FSBOs