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.
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.