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

What type of brokers allow home sellers to purchase a limited bundle of services?

1. Full-service brokers

2. Fee-for-service brokers

3. Transaction brokers

4. Discount brokers

The correct answer is: Fee-for-service brokers

Fee-for-service brokers are designed to provide a flexible approach to real estate transactions, allowing home sellers to choose and pay for only the specific services they need. This could include services such as listing the property on the Multiple Listing Service (MLS), conducting open houses, or providing legal support, as opposed to requiring sellers to pay for a comprehensive package of services that they may not use. This model is particularly appealing to sellers who are comfortable managing certain aspects of the sale themselves and are looking to save money. By selecting individual services, sellers can tailor their experience and manage costs effectively. Understanding the difference with other types of brokers highlights why this option is unique. Full-service brokers generally provide a complete range of services, including market analysis, advertising, negotiation, and closing support, often at a higher commission rate. Transaction brokers facilitate the transaction without providing traditional fiduciary representation, but they do not typically offer customizable service bundles. Discount brokers often charge lower fees but generally provide a reduced level of service compared to full-service brokers. The fee-for-service model stands out as it gives sellers the autonomy to select what fits their needs best, rather than being locked into a one-size-fits-all service package.