Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What might be a motivation for sellers using discount brokers?

1. Access to exclusive listings

2. Flexible commission rates

3. Lower overall expenses

4. Increased advertising support

The correct answer is: Lower overall expenses

Sellers might be motivated to use discount brokers primarily due to the potential for lower overall expenses. Discount brokers typically charge reduced fees or offer a fixed-service model compared to traditional brokers. This cost-saving approach can be particularly appealing for sellers looking to maximize their profits from the sale of their property. By partnering with a discount broker, sellers can often retain more of their equity, as they are able to minimize the commission payments that would typically go to a full-service brokerage. Regarding other options, access to exclusive listings is generally associated with full-service brokers who have established networks and marketing strategies. Flexible commission rates are more common with negotiation practices but do not play a significant role in the structure of discount broker services, which are defined by their lower fixed fees. As for increased advertising support, while some discount brokers may offer basic marketing services, they usually provide less comprehensive advertising compared to full-service brokers, which diminishes this as a reason for choosing a discount broker. Thus, the attraction of reduced overall expenses stands out as the key motivation for sellers opting for discount brokerage services.