Why You Should Avoid Budget Brokers

In Brokerage, as in life, you get what you pay for…

Budget, or value-based, real estate firms advertise and attain clients under the premise of promising to do the same job as full service, concierge-level Brokers for less money than they typically charge. While this may sound like a good idea at a surface level, there are some consequential trade-offs and risk you will need to accept if you wish to go this route.


The top people in any professional field did not become the top because they charge the most.  They can charge a premium because they bring enough value to the table for their clients to more than justify that additional cost, and then some!

The National Association of Realtor statistics have consistently demonstrated the average Broker more than justifies their commission in negotiation, marketing, and other skills that add to their client’s bottom line.  Imagine then, the gain created by choosing to work with one of the top Brokers as opposed to one closer to the bottom.

When you hire a Broker, whose value is the small discount they offer, they’re openly admitting that they don’t have the experience to justify being the professional you trust with such an important position.

Listen to them, and you’re placing your trust for one of the most important financial decisions of your life on someone who is actively circumventing their own level of experience (and results) in the field by leading with their willingness to save you a few dollars as bait to overlook the danger in partnering with them!


Brokers are compensated through commissions and, despite legal and contractual obligations to the contrary, discount brokers must rely on thin margins which force them to focus on “volume”.  This means, in the bluntest of terms, that you’re simply a file to them and nothing more because they don’t have the bandwidth or systems to provide a more efficient, profitable, enjoyable experience.  That isn’t the value proposition they made- they told you upfront that was all about saving you a few dollars to overlook all these things and hoping for the best.  

The high-level consultant you hired to help guide your plan to spend hundreds of thousands of dollars of your hard-earned money shouldn’t be spending their time second-guessing their compensation model as opposed to exclusively focusing on your best interests.

When it comes time to hire a high-level service professional to help guide massive financial decisions for your household, you should want that person to be paid fairly and provide so much value that you felt like you got a discount.  It shouldn’t be the other way around-those few dollars you saved upfront will likely come out of your pocket several times over before you actually get to the closing table, if at all.


As with all highly competitive industries, the best rise to the occasion, and that’s no different in real estate Brokerage.  The best Agents sell more homes, quicker, and for more money- as compared to the average Broker. They do even better statistically when compared to below average Brokers- those most likely to offer you a discount.

Why is this?  Because Brokers at the top of their game are masters of efficiency.  Our job is to understand how to properly position your home for sale, or find you the right one to buy, in the absolute best and most efficient way possible for our clients as determined through thousands of hours in the field and more trial and error than you can ever imagine.

If there’s a better negotiation method, marketing technique, website, cold call script, or way of training our staff to provide even the smallest advantage for our clients, rest assured that we knew about it and are working on implementing it formally before most brokers even got the first email blast about it (that they missed and never acted on).  

That’s the advantage of working with the best.  If there’s a minute of your time to be saved, or a dollar to be added to your pocket, we are the ones most likely to provide it, and thus provide an exponential return on your investment and your decision to work with the right professional.

When it comes to buying or selling a home- no doubt, you have choices. However, it’s imperative to realize that the lure of a discount upfront can end up costing you so much more in the end.