Discount Brokers vs. Full-Service Realtors

Thursday May 11th, 2023

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The main difference between a discount broker and a full-service realtor is the level of service they provide and the fees they charge. Here's a breakdown:

Service Level: Full-service realtors provide a range of services that include listing the property, marketing it to potential buyers, scheduling showings, negotiating offers, and handling the closing process. They are typically involved in every step of the transaction and are available to answer questions and provide guidance throughout the process. Discount brokers, on the other hand, provide a more limited range of services, such as only listing the property on the MLS and handling paperwork, but they do not provide the same level of support and guidance as a full-service realtor.

Fees: Full-service realtors typically charge a commission that is a percentage of the sale price of the property, usually between 5-6%. This commission is split between the listing agent, their broker, and the buyer's agent. Discount brokers, on the other hand, may charge a lower commission or a flat fee, but do not provide the same level of service as a full-service realtor.

Marketing: Full-service realtors typically have a larger marketing budget and can provide a more comprehensive marketing strategy, including professional photography, staging, and virtual tours. Discount brokers do not have the same resources to invest in marketing and may rely more heavily on listing the property on the MLS with pictures taken on their phones.

Expertise: Full-service realtors have extensive knowledge and expertise in the real estate market and can provide guidance on pricing, negotiation, and navigating the complexities of the transaction. Discount brokers may not have the same level of experience or knowledge.

Ultimately, the decision to use a discount broker or a full-service realtor will depend on your individual needs and priorities. If you are looking for a more hands-on approach and extensive support throughout the transaction, a full-service realtor is the better option. This is a situation where you truly “get what you pay for.”  If you are looking for your property to be represented at its best, invest in a full-service realtor. 

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