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

Which type of broker provides internet-based services without traditional support?

1. Franchise brokers

2. Discount brokers

3. Flat-fee brokers

4. Full-service brokers

The correct answer is: Flat-fee brokers

The type of broker that provides internet-based services without traditional support is characterized as a flat-fee broker. These brokers typically operate online and offer a range of services for a predetermined fee, rather than the standard commission-based model. They often provide the essential tools and resources needed for clients to complete real estate transactions, such as MLS access and basic support, but lack the extensive hands-on assistance and personalized service found with full-service brokers. Flat-fee brokers appeal to clients who may be more self-sufficient, such as experienced buyers or sellers, and who appreciate the cost savings associated with a set fee rather than a percentage of the sale. This model leverages technology to facilitate real estate transactions, emphasizing efficiency and reduced costs while still maintaining basic operational functions. Other types of brokers, such as full-service brokers, provide comprehensive support and resources through personalized service and traditionally charge based on percentages of sales—making them less aligned with the model of offering limited traditional support. Discount brokers may also offer reduced commission rates but often still provide a level of conventional support, unlike flat-fee brokers who mainly rely on online services. Franchise brokers typically operate under established brand names and offer standardized support, which again contrasts with the more minimalist approach of flat-fee brokers.