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LVH · 12-30-2005, 07:10 PM

Discount brokers can not produce the number of buyers a full service brokerage can. Other than that you also when using a discount broker get buyers who feel since the seller is not paying full commissions that this is a time they should offer less for the sellers property since he/she is not paying those extra funds. Another issue is when this happens it drives the price of homes down in a neighborhood, I would venture to guess it might happen once but the next time that discount broker came to the neighborhood most sellers would reject their clients offers.

Just to throw some stats at you most consumers who use discount brokers for listing their homes usually end up within 90 days either asking to get out of their contract or if the contract has expired listing with a full service brokerage. With the legislation purposing new regulations of mimium services require in many states discount brokers are going to find it hard to stay in business and its not because they are bad people it is because they can not perform the same services financially as full services real estate companies so they will not be able to conform to the new state regulations because of monetary issues.

There is a time and a place for discounted fees but those are rare cases, but to suggest that discount brokerages are going to take over the real estate market is just CRAZY if we all dont conform..when you compare complaints per capita of discount brokerages to full service real estate companies complaints against discount brokers outnumber those of full service real estate agencies per capita 12 to 1

12-30-2005, 07:10 PM	#12 (permalink)
LVH Status: VIP Real Estate Forum Member Join Date: Jul 2005 Posts: 328	Discount brokers can not produce the number of buyers a full service brokerage can. Other than that you also when using a discount broker get buyers who feel since the seller is not paying full commissions that this is a time they should offer less for the sellers property since he/she is not paying those extra funds. Another issue is when this happens it drives the price of homes down in a neighborhood, I would venture to guess it might happen once but the next time that discount broker came to the neighborhood most sellers would reject their clients offers. Just to throw some stats at you most consumers who use discount brokers for listing their homes usually end up within 90 days either asking to get out of their contract or if the contract has expired listing with a full service brokerage. With the legislation purposing new regulations of mimium services require in many states discount brokers are going to find it hard to stay in business and its not because they are bad people it is because they can not perform the same services financially as full services real estate companies so they will not be able to conform to the new state regulations because of monetary issues. There is a time and a place for discounted fees but those are rare cases, but to suggest that discount brokerages are going to take over the real estate market is just CRAZY if we all dont conform..when you compare complaints per capita of discount brokerages to full service real estate companies complaints against discount brokers outnumber those of full service real estate agencies per capita 12 to 1 __________________ Looking For A Glass Of Kool Aid. Check out our Las Vegas Real Estate Portal. Find Las Vegas Homes or get info for Las Vegas Investment Real Estate.