Brad's Real Estate Blog

SO, you're in the market and you're trying to decide if you want to work with a full service brokerage or discount cousin. Here's what to consider:

Pro's

Full service:
-Provide full service through the entire transaction (negotiation, facilitation, communication)
-Full-time professionals
-Experience
-Local Knowledge
-King of their domain!

Discount brokerage
-Cheap, inexpensive, saves you money!

Con's

Full service:
-full commission

Discount:
-Risk and liability
-Lack of local knowledge

Bottom line... Discount brokerages do a great job at saving people money - so it appears. In reality, 1% or 2% saved on a commission is nice, however potentially leaving 15% 0r 20% on the table due to a lack of local knowledge and a variety of other short comings, NO BUENO.

Discount brokerages are very similar to FSBO (For Sale By Owner) due to lack of professional representation and so many things being left to assume. On average, the FSBO spends more time on the market, changes price frequently and sells 15% less than a comparable full-service Realtor marketed listing.

Discount brokerages can offer value to certain individuals. Those being real estate savvy individuals whom have an in-depth knowledge of the local market, real estate transaction, escrow and understand real estate law. Otherwise, the risk is too great for a merely 1% of savings.