Where is a good resource for the negatives of using discount real estate brokers?

Question

I am a real estate agent and am looking for some good info about the negatives of using discount (flat-fee) real estate brokers. I am looking for a template to go off of or a handout to send....

Answer 1

There is no resource like that.  You just ask here and also ask the local agents in your city.  Ask at both the regular and discount offices.  In most states you are not allowed to make a handout which criticizes another brokerage. /

Answer 2

Oh, the famous "flat fee" bashing handout.

Flat fee brokers don't negotiate or write the contract.  All they do is list the property on the MLS, put a sign in your yard and that's it.  MLS rules require that these brokers list the property as "not a full service" listing.  The buyers call the seller directly, they don't even talk to the Realtor at all.  The broker does provide all of the sales contracts.

All you can do is argue what your services are and how dangerous it is for people to enter into a transaction like that.  It was designed for seasoned sellers who know the process very well...not for the newbie that doesn't have a clue.  

The famous example that I use is to ask themselves if they would defend themselves against a $200,000 without an attorney.  Most people would say they would not...however, that is exactly what they are doing when they buy and sell without a Realtor, especially if the other party has one.