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The failure rate is high and the profit margins are low ... which explains the failure rate. Having said that, the discounters have served a useful purpose to the consumer. They give them another option beside buying or selling their home without professional guidance. It makes much more sense than going the FSBO route and practically assuring yourself of failure in many cases. The pressure exerted by discounters has caused many of the 7% brokers to rethink their pricing strategy. I have argued with many "full service" brokers that 4.5% to 5.5% may very well be the new "full service" fee, especially on upscale homes. My commentary ought to get the hard core agents fired up. Let the flame wars begin. ;-)
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