Flat-Fee Realtor vs Discount Broker – How Do They Really Compare?
Understand the differences between flat-fee MLS services and discount brokers in Washington. Learn costs, services, pros and cons, and when each option makes sense.
Flat-Fee Realtor vs Discount Broker – How Do They Really Compare?
Sellers looking to save on real estate commissions often come across two alternatives: flat-fee MLS services and discount brokers. While both promise lower costs than a traditional agent, they are not the same thing.
- Flat-fee providers: charge a single upfront fee to list your home on the Multiple Listing Service (MLS), leaving you to handle most of the sale yourself.
- Discount brokers: still charge a commission—but at a reduced rate—and typically provide more support than a pure flat-fee listing.
This guide explains how each approach works, what it costs, the services included, and how to decide which option aligns with your needs.
What Is a Discount Broker?
A discount broker is a licensed real estate agent or brokerage that advertises a commission lower than the traditional 2.5%–3% listing fee.
- Some national brands—like Redfin or Homie—offer listing services starting at 1%–1.5% or even a fixed fee plus a percentage.
- Discount brokers usually still provide pricing advice, professional photos, MLS listing, showing coordination, and negotiation support.
- Lower fees are made possible by operating at scale, using technology, or reducing in-person services.
Trade-offs:
- Limited in-person support (e.g., no open houses or inspections).
- May charge base fee + smaller % of sale price.
- Hidden fees possible (forms, lockboxes, photos).
Pros of Discount Brokers
- Lower commission than traditional agents (1–2% vs 2.5–3%).
- Professional guidance: pricing, contracts, negotiation.
- MLS exposure with market credibility.
- Buyers often feel more comfortable working with an agent.
Cons of Discount Brokers
- Higher cost than flat-fee (1.5% vs a few hundred dollars).
- Service limitations (less marketing, fewer in-person services).
- Hidden or add-on fees possible.
What Is a Flat-Fee MLS Service?
A flat-fee MLS service lists your home on MLS for a one-time fee, usually $79 in Washington.
- Appears on Northwest MLS + syndicated to Zillow, Redfin, Realtor.com.
- Seller handles showings, negotiations, and paperwork.
- Optional à la carte add-ons (photos, yard signs, contract review).
Pros of Flat-Fee MLS Services
- Significant savings—flat fee vs % commission.
- Greater savings for higher-priced homes.
- Full control over showings, pricing, and negotiation.
- Flexible add-ons only if you need them.
Cons of Flat-Fee MLS Services
- DIY workload—marketing, scheduling, negotiations.
- Minimal guidance (risk of underpricing or contract errors).
- Perception of less credibility among some buyers/agents.
Cost Comparison
Example: $700,000 home in Washington.
| Listing Option | Listing Fee | Buyer’s Agent (2.58%) | Total Cost |
|---|---|---|---|
| Discount Broker (1.5%) | $10,500 | $18,060 | $28,560 |
| Wayber Flat-Fee MLS ($79) | $79 | $18,060 | $18,560 |
Service Comparison
| Feature | Discount Broker | Flat-Fee MLS |
|---|---|---|
| MLS Listing | Included, managed by broker | Included; you/self-manage |
| Pricing Assistance | Broker CMA + strategy | Usually not included (add-on) |
| Marketing Effort | May include photos, signage, ads, open houses | Basic listing; add-ons available |
| Showings & Negotiation | Broker handles | You handle directly |
| Legal Forms & Compliance | Broker prepares contracts/disclosures | You download; some support offered |
| Closing Support | Broker manages escrow tasks | You handle with escrow/title; can hire attorney |
When to Choose a Discount Broker
Choose a discount broker if:
- You want professional guidance but can’t justify a 5–6% commission.
- Your property has legal complexities (e.g., septic, HOA, zoning).
- You lack time/interest in showings or negotiations.
- You prefer broker-managed transactions, even at slightly higher cost.
When to Choose a Flat-Fee MLS Service
Choose a flat-fee MLS if:
- You’re confident in pricing and negotiation.
- You’re selling in a hot market.
- Your home’s value is high (savings scale with price).
- You have time to manage showings and calls.
Washington Considerations
Regardless of model, WA sellers must:
- Deliver Form 17 Seller Disclosure within 5 business days.
- Use approved purchase and sale agreements.
- Provide the agency law pamphlet.
- Disclose known defects; fair housing compliance required.
👉 Both flat-fee providers and discount brokers should supply correct forms. If unsure, consult an attorney.
Step-by-Step: Deciding Between Options
- Estimate your home’s value (CMA, appraisal, online tools).
- List priorities: cost vs service.
- Research providers: interview brokers & flat-fee companies.
- Calculate net proceeds with cost scenarios.
- Consider your availability to handle showings/negotiations.
- Factor in legal requirements.
- Make a choice based on financial goals + support needs.
Related Resources
Conclusion and Call to Action
Both discount brokers and flat-fee MLS services promise savings over traditional commissions, but they serve different sellers.
- Discount brokers: lower-than-usual commissions with professional guidance.
- Flat-fee MLS: requires DIY effort but maximizes savings, especially on high-value homes.
💡 In WA, saving $10,000+ on listing fees can significantly boost net proceeds.
👉 Ready to maximize your savings? Start with Wayber’s flat-fee MLS service today and keep more equity from your sale.