The problem with discount models is and always has been that they need volume to make money. When there's volume, there is often a lack of personalized service. When there is a lack of personalized service, business drops off . . . and so do they.

you get what you pay for....It's horrible...they do "squat" in my area...

You get what you pay for......

During boom times, we see discount brokerages enter the market - and typically they go out when we get the next recession. Real estate professionals can counter discount brokerages by answering, what part of my service should I not do on your behalf? Does a discount brokerage take professional photos? Meet buyers and their agents? Show the property? Negotiate terms? Handle inspections? Meet the appraiser? Open escrow? Keep track of the loan? Be proactive on any issue? Or do they just put the home in MLS? 

They provide a fixed service have little or no ability to work outside the box.. they simply are discount brokers providing discount service and discount level client results

On top of that the buyers know these home Sellers are paying a discounted fee and they WANT to lower their offers accordingly just as they tend to with FSBO's

   I cannot discussion commission amounts with other Brokers, per Federal anti-trust laws.

  I can say that consumers should have choices.  And, if a business does not charge enough money for its services, that business will ultimately fail.

Walmart & Tiffany - room for everyone

HOMEiZ.COM HOMEiZGROUP I've been in this business a long time. I haven't seen a discount broker make it yet with any longevity.

There will always be different business models & there always will. It all depends if you want to work for those different groups. I personally do not as I know my own value. They are sold a bill of goods about how much 'more' they will sell then the rest of us. 

Poor buyers don't know that many of them just had the ink dry on their licenses.  

They also tout working for the consumer but the consumer doesn't know they don't have a clue. I've seen Redfin in the flesh say some pretty stupid things to buyers & they just shake their heads in agreement.

Candice A. Donofrio  nailed this one!

Does it really serve the consumer?

Of course it does.

However, your question does not provide any qualifying details.

I would compare your question to, "Is Grandma well served,, who only drives to church on Sunday, by driving  a GMC Danali LX?"

The answer is, "It depends."

Todays home buyer, who feels they are increasing more capable and have access to volumes of information and who may have bought and sold homes previously, may find the empowerment of such programs very beneficial. Such services are in the best interest.

Or we could be talking  about a socially inept, undereducated, naive citizen who will find the race to the bottom regarding fees will prove EXPENSIVE.

If real estate professionals don't start looking for their PLAN B, to be liberated from the oppression of NAR, local MLS, the collusion among brokers to limit agent choices, they may well find themselves in the same predicament as Block Buster. They kept selling the same old stuff but customers were buying from someone else.

Dear agent, "Are you selling the same old stuff?

What hurts the industry is irresponsible recruiting of agents without a meaningful commitment to their success.

I think it hurts the industry - you get what you pay for, and knowing redfins business model does not have consumers best interest at heart would make me avoid ever using them

I know some great agents that use them though, and I know some great agents that use things like Zillow ------- but there are good fish & bad fish in that pool, and I don't think these companies do enough to notify consumers of that risk, and that is unfortunate.

They know that there are always plenty of agents out there who will work for free, and they are there to help them keep busy working for free.

And much of the public does not understand the value of a good agent so they go with cheap instead.

I am afraid I can't help you with this as I don't deal with commissions for sales

Looks like you got some grat answers.

We are seeing this on occasion around here too, but agents don't stay with them for the low pay.

They've been around for a lot longer than you think.  There are some out here who work for half a percent.  The clients that are solely concerned with "a deal" are not the clients I'm interested in working with.

I see tv commercial on all the time with them.  Not a fan of the model

These services are just buying the business. The moment they realize that they are pursuing a failed business model, they will raise their rates and people will quickly forget about them

Everybody has a value for their efforts! Mostly, you get what you pay for! Consider the factors and choose wisely!

Not having a discussion on commission rates in a public forum.

They serve a purpose and there's room for all kinds of business models.  In my opinion, it offers minimal consumer service.  I was on the buyer's side of one of these transactions...  All was fine until we got to an appraisal issue.  The poor seller didn't have an ounce of support on his side.  My client is enjoying the house quite a bit.  :)

Local consumers will make their own decisions.

HOMEiZ.COM HOMEiZGROUP - discounters were there then, too!

I hurts our porofession.  they cheapen our industry and their client do not get the service they deserve.

I don't know how anyone can survive with these low rates unless they're churning out the closings.

Consumers are always looking for ways to get by on the cheap. I believe you get what you pay for and limited service brokers give limited services.

The different discount models come and go but, looking at the data year-after-year, their market share is not even worth worrying about. There's room for a variety of business models but, for me, I prefer full-service. There's simply NO WAY a discount broker can provide the service that I do for my clients so, to echo others' comments, you get what you pay for!

You definitely get what you pay for and usually end up missing out on a home you want.

There is a huge difference between shopping at Walmart and shopping at Nordstrom.  In quality of service and the products consumers buy. I am not concerned about the discount model. I have more to offer. 

I know some of these companies continue to deal with venture capital thus they are not having to run on the proceeds. I applaud different business models that don't run on life support...

Many ways to get the job done saving money being one of them. I am more interested in what money can buy and the outcomes. People who come cheap remain suspect as a rule....With stakes so high, I wonder about this

There are lots of business models that can be used in our great nation.  Great choices for the consumer.

This instant market is causing this thinking

There all types of consumers out there.  Some like these types of companies, and some don't.  Like shoes for instance there are less expensive ones and the very high end, where a shoe is priced like caviar by the ounce.  To each his own.  A