Definition
A brokerage charging below-market commission rates, typically 2-3%, for MLS listing and basic support. Provides market access at lower cost but minimal marketing effort. Works best in strong seller markets where properties sell themselves.
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Discount brokers charge 2-3% commission or flat fees instead of traditional 5-6%. Provide MLS and basic support with limited marketing.
Pro Tip
Discount brokers work best in hot markets. Cold markets need full-service broker marketing.
Example
Using discount broker charging 3% commission instead of 5.5% full-service commission.