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Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

The marketing and the services will be reduced. I have a friend that will not list with me or a traditional full service company and has suffered by the house being on the market a year and a half. She first thought just being in the MLS was enough and she could do the rest and now she asks me is there that much difference? Of course I say yes.

Feb 21, 2016 08:28 AM
Rainmaker
4,333,772
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

They are only looking at the $$$ - Not quality, not honesty, not marketing!

Feb 21, 2016 07:34 AM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Tony and Suzanne Marriott, Associate Brokers when you work by referral, and when people have trust in you, this is not a topic of discussion.

In the Absence on Value, Price is always a determining factor!

Feb 21, 2016 01:22 PM
Rainmaker
5,005,659
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

The sellers look at their bottom line on the net sheet. I can easily show I'm worth the commission I charge....my results show a higher price, shorter time on market and my full attention!

Feb 21, 2016 08:06 AM
Rainmaker
469,510
Dan & Laurie Pittsenbarger Team
Keller Williams Western Realty - Bellingham, WA
Lakeside & Coastal Single Family Homes

Depends on the circumstances. The seller has bought and/or sold several properties with the agent. The seller asked for a X% discount on a listing - perhaps the Broker that will give them some kind of break is the making a better biz descission than the agent that won't budge under any circumstances. And occasionally we do run into a hardship case of some kind or other.

But for the typical situation - the difference commonly is negotiating skills and/or services provided.

Feb 21, 2016 07:11 AM
Rainmaker
2,182,552
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Clearly their NET PROCEEDS !(to Sellers)

Feb 21, 2016 06:52 AM
Rainmaker
152,661
Chrissi Chapman Topoleski
Coldwell Banker Realty - Woodbridge, VA
Helping agents live an exceptional life!

I was asked today to list a at most $250k house with full service and agressive marketing at 4.5% commission AND the owner wanted me to visit the house everyday while it was on the market. In this case, the only important thing was the commission, not the quality of the agent.

Feb 21, 2016 06:32 AM
Rainmaker
5,868,554
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I would hope the public knows you get what you pay for.  If an agent is charging less, most often the services are less also.    

Feb 22, 2016 11:35 PM
Ambassador
6,393,494
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

I have little respect for a discount broker, if they cave in on the commission, they they may just underprice and under sell my home too.

Feb 22, 2016 11:37 AM
Ambassador
3,727,873
Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

I think the amount of the brokerage fee is the most important thing to this part of the market.  And most don't understand that price/quality options are linked.

Feb 22, 2016 01:21 AM
Rainmaker
7,836,139
Roy Kelley
Retired - Gaithersburg, MD

Brokers have the option to select their own business models.

Feb 21, 2016 11:25 PM
Rainer
98,823
Becca Rasmussen
HomeSmart Cherry Creek - Highlands Ranch, CO

Ditto what Michael J. Perry said -- NET proceeds. 

The only way I can think to measure this, though, is to have both a traditional brokerage and a discount brokerage listing the same home at the same time for their own respective prices and then compare the bottom lines of all offers received between the two.

Otherwise, it's all speculation.

But -- how many brokers, full or discount, will accept an Open Listing contract so that this could be tested? (I can't even find anything except Exclusive Right-to-Sell contracts in CO's approved listing forms, no Exclusive Agency or Open Listing contracts. I might just be missing them, but I think not.)

Feb 21, 2016 10:55 PM
Rainmaker
900,128
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

You usually get what you pay for. Someone who doesn't discount may know his worth and not be willing to work for less.

Feb 21, 2016 08:55 PM
Rainmaker
5,216,409
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

One word "perception"! The tough part is the "reality"!

Feb 21, 2016 08:52 PM
Rainmaker
613,494
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

I have never found a discount listing agent that actually provided good service.  For starters, they never answer the phone or return calls promptly.

You cannot run a business effectively on peanuts.  Discounting your fee to get more listings only dilutes your time available to get things done.

Eve

Feb 21, 2016 08:06 PM
Rainmaker
1,661,936
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Lawrence "Larry" & Sheila Agranoff. Call 631-805-4400 (c) have this one! 

Feb 21, 2016 07:06 PM
Rainmaker
2,759,812
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

 There is a brokerage here that charges a flat fee. People are flocking to the brokerage. The stipulation, you must be an experienced agent. A minimum of seven transactions below your belt.

Feb 21, 2016 05:25 PM
Rainer
80,653
Linda Guess
Keller Williams Tri-Lakes Branson, MO - Branson, MO
Branson area real estate sales.

The discount brokers that I have experienced have clearly not provided full service. 

Feb 21, 2016 01:48 PM
Rainmaker
763,883
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

I think it matters most if the seller is not savvy or they don't know an agent already.  We shopped at Walmart during the heart of the recession, now we just don't have the time.

Feb 21, 2016 01:45 PM
Rainer
223,831
LUXURYSOCALREALTY COMPASS La Jolla
Compass - La Jolla, CA
San Diego Partner - The Private Client Network

How much $ you are going to allocate in hard costs to market. Which mediums can they expect to see their property advertised in?  

Feb 21, 2016 12:57 PM
Rainmaker
5,772,575
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Tony and Suzanne,

I think that Debbie Reynolds said it perfectly...A

Feb 21, 2016 12:15 PM
Rainmaker
3,071,489
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

So far - no specific items/services of value to the Seller mentioned...just "references" to superior service.. Come on folks - this is your commission on the line!

Feb 21, 2016 11:52 AM
Rainmaker
1,502,998
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

The level of commitment and services provided by the agent and that the full priced agent is worth the price paid.

Feb 21, 2016 11:22 AM
Ambassador
2,684,109
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

  Oooh,  that is a dangerous conversation to have.  Your question is valid, but there are always commenters who want to throw in numbers and percentages.   Beware of the DOJ and the FTC.

Feb 21, 2016 11:06 AM
Rainer
231,224
Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

what is your record of accomplishment. who gets the job done. show me days on market and % of sales price.

Feb 21, 2016 08:47 AM
Ambassador
2,161,048
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Sometimes they just feel like they have to "win" .

Feb 21, 2016 08:33 AM
Rainmaker
608,881
Mitchell J Hall
Manhattan, NY
Lic Associate RE Broker - Manhattan & Brooklyn

Bottom line. The broker firm on their commission can usually prove to seller that they will net seller more. I have actually become the second broker after sellers were unsuccessful selling with previous broker at a lower fee. It's moot if the broker that listed at lower fee doesn't sell property.

There are always exceptions and all RE commissions are negotiable. In my experience, I have found that many brokers that list at a discount have inferior marketing and wait until they find a buyer on their own. They're less likely to market to and cooperate with buyer's agents therefore limiting exposure and possibly the highest and best buyer for seller. They often put their personal (2 sides of transaction) financial interest ahead of the seller's. 

Feb 21, 2016 08:25 AM
Rainmaker
1,525,616
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

It is the difference in service, there is a reason some agencies are called "limited service".

Feb 21, 2016 07:19 AM
Rainmaker
864,658
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

Dependability and trust comes to mind. 

Feb 21, 2016 06:53 AM
Rainmaker
1,157,785
FN LN
Toronto, ON

Each seller has different priorities.

Feb 21, 2016 06:46 AM
Rainmaker
617,935
David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

We do very tangible things that few other brokers do. Therefore we get results many brokers don’t.

Feb 21, 2016 06:26 AM
Rainmaker
140,768
Joan Dickie
Keller Williams Premier Realty - La Crosse, WI
Keller Williams Premier Realty

The marketing plan?

Feb 21, 2016 06:25 AM
Rainmaker
1,231,853
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Services.

Feb 21, 2016 06:17 AM