Should You Sell With a Discount Broker?

These days sellers have options. A seller can be a FSBO (For Sale By Owner), list with an agent who charges a commission at the market rate, or through a discount broker who may charge a flat fee or offer a substantial decrease in commission.

The model of a discount broker is simple, persuade the seller to list with them as the option that will save the seller money while also receiving the advantages of what a full service brokerage firm offers through marketing platforms such as the multiple listing service. 

In one way the discount broker has a point. Because most agents aren't able to provide a service that is more valuable than the commission they charge the seller would be smart to go through a discount broker. But here's where the discount model runs into problems. The discount broker also doesn't have neither the ability to provide a service of value that exceeds their fee or the resources to commit to a full client service business that involves marketing, advising, negotiations, transaction management, and conflict resolution to name just a few. As a result, the client is left with a huge void of some much needed representation. 

So, should you sell with a discount broker? Depends on what kind of service and representation you prefer.

Should you sell with an agent who charges the market rate? Depends on the agent you choose.

Bottom, line is you need a pro who knows how to provide great customer service and get the job done.

 And those agents are in the minority.