The long and short of discount brokerages

A discount broker can save a seller money in the short run, but ultimately in the bigger picture, you may lose more with one. A full-service residential broker, namely a Realtor, has more of an incentive to sell your home because he or she will get more in commission -- and usually negotiate a higher percentage than a discount agent -- if the home or condo does sell.

Discount brokerages deal more in bulk, so even though they charge less in commissions, they also provide much less in the way of marketing and services.

Due to their inherent business structure, more often than not, they just want to take a listing and if it sells, it sells. They are playing a bulk numbers game, which is not necessarily bad, but they do not have anywhere near as much of an incentive to sell your home -- and sell it in a timely manner -- as a full-serviced agent, broker or Realtor would.

Also, if there is a down market, you want to have all the negotiating, marketing and people skills on your side, and a reputable full-service Realtor should offer that.

It's a lot harder to sell a home when times are tough than when times are easy.

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source: latimes.com