What Is a Discount Broker in Real Estate?

💰 How a Discount Broker Works

• The seller lists their property with a licensed broker who offers lower fees than full-service agents.
• Instead of paying 3% to a listing agent, sellers often pay a flat fee or a reduced percentage (such as 1% or 2%).
• The home is placed on the Multiple Listing Service (MLS) to reach buyers and agents nationwide.
• Services can range from MLS-only listings to partial representation or full-service support at a discounted rate.

Discount brokers appeal to sellers who want to save money on commission without handling the entire sale themselves. The goal is to reduce fees while keeping MLS visibility and professional support.

⚖️ Pros and Cons of Using a Discount Broker

• Pros: Lower commission fees, MLS exposure, and professional listing setup.
• Cons: May include limited support, less personalized service, or added fees for premium options.
• Best for: Sellers who want professional exposure but are comfortable managing some parts of the sale.

🏠 Discount Broker vs. Flat Fee MLS

While both help sellers save money, a discount broker usually charges a reduced percentage or offers partial services. A flat fee MLS service, like Brokerless.com, lets sellers list on the MLS for a one-time fixed price — often saving even more by eliminating percentage-based commissions altogether.

In short: a flat fee MLS gives sellers direct MLS access, while a discount broker offers a hybrid between traditional and do-it-yourself FSBO selling.

📄 Why It Matters for FSBO Sellers

Understanding how discount brokers work helps FSBO sellers compare options. With Brokerless, homeowners can access the same MLS exposure for one flat fee — no ongoing commissions, no hidden costs. It’s the smarter, simpler version of a discount brokerage model.

Ready to list your home and save thousands without a 6% commission?