Summer Soldiers: The Reality of Discount Realty (Part 2)

Real Estate Agent with Big Block Realty 858.232.8722 CA BRE# 01261476

Continued From Part 1



What drives REALTORS®



What this strategy does is allow REX to double-end or represent both sides of the deal, thus making the 2% they do charge, which is only .5% below the average commission these days paid. We’re seeing many 5.5% - 5% - 4% listings in our San Diego MLS. Again, the fee is negotiable, and I feel the fee offered reflects the skills set of the listing agent; with exception to military discounts, repeat client rewards, similar-etc.


Regarding Buyers: You pay no fees typically with a buyer’s agent from any company as the buyers’ agents are paid by the seller-through the listing broker, so REX is typically not saving you anything as a buyer purchasing a property.



None of these companies have been around for more than 5-10 years and therefore do not offer the experience of having gone through multiple markets of peaks and valleys. I’m not even sure they all have that much experience. I’m basing this off a REX corporate license that dates to 2009. The last 8 years have been growth years, which do not test the sword and shield like 2007-2011 did. They lack the experience of seeing what 1999-2006 did to our market and the cautionary tales that came out of working those markets.


Thomas J. Nelson RealtorHere’s the simple math and gravity of human nature:

If I’m chargingThomas J. Nelson Realtor you 2% only or $5,000 flat fee only for example. I still have all the same expenses as my competitors in showing you homes or selling your home but less pay i.e. less budget. Therefore, what will I compromise on you Mr & Mrs. Consumer to protect my bottom-line? See the more time and money I spend on you the less I make and that gap is decidedly smaller than an agent that charges standard fees. Buyers cost time, fuel, vehicle wear & tear and energy and the longer they take, the less committed I could see a fixed fee agent getting as they watch their return on investment dwindle into potential debt, not profit. Imagine the corners that a fixed fee agent may cut knowing spending $1,000 on a Just Listed campaign would eliminate 20-25% OF THEIR PROFIT WHEN ESCROW CLOSES.



Oh by the way, the MLS costs an annual and quarterly fee, which is another reason why a discount broker would want to avoid this “traditional” technology that virtually any agent/REALTOR® with a buyer uses to find property for sale. Are you starting to see that companies like REX are not here to protect the consumer from high fees as much as they are a clever marketing ploy based on volume not substance? Volume means they got to make up in speed and numbers what they can’t in consumers that are willing to get what they pay for.


I'm pretty sure the discount transactional brokers of the world do not slay the dragons we full service, relational agents do. They are not who you call for your transaction that will require experience, negotiating skills, problem solving skills (there are always problems), marketing skills and tools, patience for putting the clients’ needs ahead of their commission needs; we sometimes must advise a buyer against buying a house or a seller that it’s not a good enough offer.


I also question how much good advice is given to the clients when a discounted fee has a shelf life that when expired, means debt not profit. Lots of our advice to clients delays their process. We are willing to do that because we are relational, ethical and well trained in part, also because we’re not protecting a very shallow bottom-line. I want my mechanic, computer guy, doctor, lawyer to be paid well and fair, I want to know they are living a good enough life to not be distracted by undue influence caused by financial or even health issues. I want to hire successful people to represent my interests.


This is America and there’s a need for Dollar Stores, Walmarts, Macy’s and Nordstrom Stores and Nordstrom never panics when Walmart has a sale-nor do I when discount brokers emerge. Remind me where were they in any depreciated market? I get that the free market allows them the same opportunities and God Bless America. I can’t sit idle while I watch companies like this bamboozle the public with their claims of overpaid REALTORS® though and this piece was long overdue.


    Thomas J. Nelson Realtor                Thomas J. Nelson Realtor  

REALTORS® aren't afraid to work, get their hands dirty and spend the time required providing the best service their resources, skills, tools and experience can provide. Competence & Character Required.

I am one of many more: REALTORS® that give back to their clients and their communities. We are 3 dimensional and leading the charge in community outreach, providing jobs; all the while providing the American Dream to those that dared to dream and go for it.



As a consumer, do your homework, local market knowledge, sales experience, neighborhood expertise, etc. Are they a negotiator, are they a problem solver are they making you feel like you come first? By the way, this REALTOR® doesn’t vanish after the sale. I work 100% by referral, which means I’m still selling property to and for clients I met 19 years ago. I’m still a resource to all my clients and I keep them in the know about our market, their home values and the latest trends and tech that can improve upon their home-ownership. I am the full service Winter Patriot choice amongst the many Summer Soldiers in the discount realm.


My information comes from the REX website, the National Association of Realtors and my opinion of 30 years+ experience in real estate investing and new sales & resales.


Photos courtesy of 

1. Photo by Lubo Minar on Unsplash part 1

2. Photo by Mikhail Vasilyev on Unsplash part 1

1. Photo by Goh Rhy Yan on Unsplash part 2

2. Photo by Ian Schneider on Unsplash part 2

3. Photo by Max Panama on Unsplash part 2

4. Photo by rawpixel on Unsplash part 2

5. Photo by Karen Maes on Unsplash part 2

6. Photo by The Digital Marketing Collaboration on Unsplash part 2




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REALTOR®, CRS, RCS-D, CDPE, ePro, Certified:Military Home Specialist,

Certified: Luxury Home Specialist Podcast Host, Author & Keynote Speaker


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Do You Know The Market Says Your Home is Worth?

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Disclaimer:  Nothing in this blog article is to be construed as legal advice, tax advice, medical advice or financial advice.  For legal advice see an attorney.   For tax advice, health or financial advice see a tax attorney, certified public accountant, or other qualified professional.

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Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D

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