The landscape of real estate brokerage services in the United States is undergoing a notable shift with the rise of flat fee and discount brokers. Traditionally, real estate transactions have been dominated by agents charging a percentage-based commission on the sale price of a property. However, the emergence of flat fee and discount models has introduced greater flexibility and affordability into the market.

These alternative brokerage models operate on different fee structures, often offering fixed rates or reduced commission percentages compared to traditional agents. This approach appeals to sellers seeking to minimize transaction costs and retain more of their property’s value. Furthermore, it aligns with the growing trend of consumers demanding transparency and cost-effectiveness in various industries, including real estate.

The increasing prevalence of flat-fee and discount brokers has been facilitated by advancements in technology and the internet, which have democratized access to real estate information and empowered sellers to take a more active role in the selling process.

Additionally, changing market dynamics and increased competition have encouraged innovation within the real estate industry, prompting traditional brokers to adapt their business models or face obsolescence.

As these alternative brokerage models continue to gain traction, they are reshaping the traditional real estate landscape and providing sellers with more choices and control over their transactions.

Here are five reasons you might consider selling your home with a “discount broker”:

First, and most obviously, you will save a lot of money. Sellers can save thousands of dollars by opting to list with an agent who offers flat fee services as opposed to charging the traditional 5% to 6% of the sale price of the home.

Second, many times flat fee agents will still offer the same “full service” as agents charging percentage commission. So, in many cases sellers can save thousands of dollars and not sacrifice much in the way of service if anything at all.

Third, many discount agents offer a “menu of services” so their clients can choose and pay for only the services they need. This “à la carte” format is becoming increasingly popular given the fact that home sellers today have never been more empowered with tools to do a lot of the legwork themselves. Now sellers can pay for what’s important to them and avoid paying for what’s not. For example, if you work from home or are retired, you can show your home to potential buyers yourself without the need for an agent to be present at every showing, which can cut down a huge part of the cost.

Fourth, many flat fee agents will charge an upfront fee, so they know they are at least guaranteed some compensation even if the home doesn’t sell or you simply change your mind for whatever reason and decide not to sell. Typically, this upfront fee is not much, and is more of an advantage to you because the agent will inherently feel more invested in getting the home sold if you have already paid them a non-refundable amount. The agent also feels like their costs to market the home are covered.

Fifth, and most importantly, is something that most sellers overlook. Many times, working with a flat fee agent will attract more buyers and get them more excited about purchasing the home because they know there is not a 5% to 6% commission built into the price. There is an automatic perception that the home is going to be a “better buy” because there is not nearly as much cost built into the deal. In fact, many flat-fee and discount agents will tout this as the main reason the home is so attractively priced. If you are interested in checking out some of the most prominent discount brokers, we recommend starting with Houzeo, Clever, and just 990. All three of these brokers provide excellent service for home sellers at a fraction of the price of the normal 5% to 6% brokerages.