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What Is The Best Discount Real Estate Broker in 2018?

June 08 2018
by Leisl Bailey

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Buying or selling your house, and looking for a deal? You could try overpricing your home, negotiating with a real estate agent, or sending a letter to the seller. Don’t want to do any of those? Then you need a discount broker. Don’t just use any discount broker, though, use the best one.

What is the best discount broker, you ask? Step right up, you’re about to find out.

What is a Discount Broker?

First things first: What is a discount broker? A discount broker is a broker willing to do some or all of the work regular real estate brokerages do, only for a smaller fee than usual. You may see them advertising their services on social media or billboards. Some are new agents trying to get some experience under their belts. Others are brokerages that only offer their services at a discount. Although they are all called discount brokers, not every discount broker provides the same services.

Why Use a Discount Broker?

Discount brokers can be used both by those selling their home and by those buying a home. A discount broker is going to different things with a seller than they would with a buyer, though. Let’s dive into that a bit more.

For the Seller:

Discount brokers typically get called in when a seller is looking to save some money while listing their own home. Some sellers are listing their home on the market themselves, but want to be listed on the MLS. They would pay a discount broker (or a listing service) a fee to list it for them. Some discount brokers will provide a full range of services for a smaller fee than a regular agent. Although that fee varies from broker to broker, it is typically between 1% to 2% of the sale price.

For the Buyer:

Usually, the buyer doesn’t pay their broker’s commission. The seller typically pays both broker’s commissions out of the money from the sale. Why use a discount broker, then? For the buyer rebate. Some discount agents offer up to a 1% buyer rebate depending on the sale price and the number of homes you want to look at. That means you could make money by using a discount agent to buy.

Discount Broker vs. Real Estate BrokerDiscount Broker vs. Real Estate Broker

Discount brokers and regular real estate brokers differ in one central aspect: the price of their services. Most real estate agents charge between 3% and 4% on the home transaction as a listing agent, and between 2% and 3% of the transaction price as a buyer’s agent unless you negotiate. Discount agents typically charge much less than that.

Beyond that, discount real estate brokers vary widely in the services they provide. Some only list homes on the MLS and offer little-to-no support after your home is listed. Others list and advertise your house online, but that’s where they draw the line. Still, others are full-service agents who not only list your home but take care of everything else the way a regular real estate broker would.

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What to Look for in a Discount Broker

If it’s a good deal you want, then don’t just settle for someone who will stick your home on the MLS with no second glance. And definitely, don’t go with someone who doesn’t know the area at all. Especially when you can get a local full-service agent for the same price, and in some cases, even cheaper!

Look for a discount broker who treats you like any one of their commission-paying clients. Those are the ones who will not only list your home; they’ll advertise your home, schedule open houses, shuffle the paperwork, and bring you over a closing gift to boot! They are also the ones who will take the time to get to know you and find your dream home. Choose a discount agent who isn’t thinking about the money you saved on them, but how they can best serve you.

List of Discount Real Estate Brokers

There are several discount real estate brokers worth mentioning. We’ve also made it easy for you to compare by adding a few pros and cons of each.

Clever

We would be remiss if we didn’t add this one in, don’t you think? Clever Real Estate is a homegrown start-up with buyers and sellers in mind.

Pros:

  • You get a top-rated agent for a flat rate of $3,500 or 1% (depending on the house)
  • You get a local agent that knows your market well
  • Each agent is full-service, meaning they’ll take pictures, list the home on the MLS, hold showings, and communicate with buyers

Cons:

  • They aren’t found in every location, yet (check out our zip code tool to see if there is one near you!)

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Redfin

Redfin is known for their home search database.

Pros:

  • You get a local, full-service agent
  • A lower commission  rate of 1.5% commission (unless you live in Maryland, Virginia, or Washington, D.C., where you get 1% commission rate)
  • Top placement on their website when you list with them

Cons:

  • A commission rate of 1.5% in most areas is not the lowest on this list

Purplebricks

London based, this company has a lot of potential in the U.S., U.K., and Australia!

Pros:

  • You get an experienced, full-service agent
  • A flat fee of $3,600 no matter the price of the home
  • You get a virtual 3D tour of your house created

Cons:

  • Reviews say that Purplebricks escrow isn’t the greatest to work with. Since Purplebricks agents typically like to use their in-house escrow, this may be an issue

The Best Discount Broker

After hearing about the run-of-the-mill discount brokers, you may be wondering if the awesome ones described indeed do exist. It is my pleasure to inform you that they do. The best discount broker thinks about their clients first and the money second. They work with the top agents in your area to provide high value at a low price. They know what to look for, know how to find buyers, and best of all, know how to take care of you.

Where is this paradise of discount brokerage?

It’s here, at Clever. Our discount real estate agents work with buyers and sellers to save money, without sacrificing the level of service. Call us today at   1-833-2-CLEVER or fill out our online form to get started.

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