Discount Real Estate Agent Myths Busted

With all the noise in the real estate industry, it's no wonder the average person doesn't understand how discount real estate agents in Utah can save them money when buying or selling a home.  Read on, and I'll debunk the most common myths about discount brokers.

Truth Utah discount real estate agents and brokers

I will outline the most common myths full-priced Utah real estate agents, brokers, and brokers and agents across the country perpetuate about their lower commission competitors, the dreaded discounter

The 6% commission structure is antiquated. I believe brokerages and their high fees will decrease drastically over the next five years.  Most agents don't realize it, but they are in a race to the bottom, and the last one to the finish line goes out of business.

On your mark, get set. Goodbye, high commissions!

Discount Real Estate Agents Will Go Out Of Business

Discount Agent UT out of business


Discount real estate agent's commissions are too low to stay in business. It always surprises me when I hear real estate agents say this.  Maybe these agents have not heard of Wal-Mart, Amazon, Wayfair, or  They all run their business on high volume and low profit margins.  Not only are they surviving, they're thriving. 


The Internet is changing every industry, including real estate.  The old-school real estate brokerage model has resisted technological advances due to significant moats.

Challenges of touring homes for sale and the multiple listing service (MLS) hoarding all the local home sale data are just a few of the inefficiencies on display in the real estate industry.  Lack of access to homes, home sale data, and housing inventory controlled by a single group (Realtors) has allowed the industry to maintain its death grip on high commissions. Those days are over.  Their grip is slipping, and the rise of discount brokers will increase competition while lowering agent commissions.

Anyone can find Utah homes for sale and schedule a showing with an agent online in minutes.   Here's an example of the one-touch home tour showing feature on  No talking to sales agents to schedule a showing for the properties you like. Online Home Tour Scheduling

It has been challenging for discount brokerages to survive in the past, but better websites, better data, and younger home buyers who grew up staring at computer scenes aren't going to tolerate the old ways.

Why would they?  They can push a button and have a stranger pick them up and take them anywhere they desire, or they can have the best restaurant in town deliver a savory dish without speaking to a human. 

Do agents think this new tech-savvy home-buying generation wants to be chauffeured (held captive) around in a car listening to a broker sales pitch? No, they want to push a button to schedule a property tour, get approved for a mortgage, and submit a purchase offer, all from the comfort of their sofa. 

Oh yeah, they will also choose the broker or agent offering the lowest price in addition to convenience.   

Discount Real Estate Brokers Offer A Low Level Of Service

Utah Discount real estate agents bad service


If you pay less for an agent to represent you, you're receiving a lower level of service. 

I hear agents say, "You get what you pay for," all the time. That may be true in some industries but not in every industry, and definitely not in the real estate industry.

You pay a lot more for a Ferrari than a Honda (I love Honda's), and it's unrealistic to think a Honda will perform around the track like a Ferrari. Not even close.

The internet makes every brokerage look like a Ferrari, but they're a Honda in disguise. Again, I have nothing against Hondas. I've owned several, but that's only because I can't afford a Ferrari.


Most Utah real estate agents and brokers offer terrible service regardless of their commission structure. Not all agents offer terrible service, but the commission amount rarely indicates the level of service you'll receive. If you research, you will find outstanding real estate agents at full-priced and discount brokerages.

UT discount real estate agents reviews

Congratulations! Your research has already paid off. I'm one of Utah's top-producing discount brokers.

Check out my 100 + five-star reviews from past clients.  Great service at a discount!

Large discount real estate brokerages in Utah will hire any newly licensed agent with the basic capabilities of responding to online buyer and seller leads. 

The inexperienced agent is incentivized to hang their newly printed real estate license with the discount brokerage to jump-start their career.  I don't blame them.  It's better than knocking on doors or cold-calling strangers, which is exactly what the traditional real estate agent and the broker will teach them to do.

Hiring inexperienced agents who offer a low level of service is not unique to discounters. Traditional real estate brokers in Utah will hire any agent with a pulse regardless of experience or ability to service the client. It's sad but true, but they know they can squeeze a couple of transactions out of the new agent before they quit.  

Pro Tip: The average real estate agent lasts six months before leaving the industry,

Before committing to an agent or brokerage by signing a buyer-broker agreement, please interview several agents to ensure they meet your service needs. 

Always read past client reviews before hiring a Realtor. Zillow, Realtor, and Google reviews are a great resource.

Utah real estate agent commission rebates

Buying A Home? Get A Commission Rebate!

Be instantly notified when agents list new homes for sale. Receive a commission rebate when you purchase real estate with our Utah discount agents.
Already have an account? Sign in.

Discount Brokers Are Spread Thin


Since discount real estate agents in Utah need to work with significantly more clients to make a similar income as a traditional agent, they won't be available for their home buyers and sellers' needs.


Some of the most responsive real estate and mortgage brokers I've worked with are discounters. Discounters understand their business is based on volume, so from the beginning, they implement systems to help with additional volume. 

Busy agents can hire transaction coordinators to assist with files and scheduling for a small fee.  Transaction coordinators(TC) are paid per real estate transaction. Even a discount real estate broker can afford a TC because discount realtors provide TCs with more files (transactions). In return for more volume, the agent receives a discount per file from the TC, making everything more affordable.

Discount Real Estate Agents Are Inexperienced

Utah Discount real estate Agents experience


Utah brokers and agents often use a lack of experience as a tool to convince clients to work with them instead of using a discount real estate brokerage to justify their higher commissions. 

Let's stop and consider what makes an agent or broker experienced. Is it the commission they earn per transaction, or does experience come from pricing and negotiating thousands of home sales in Utah?


Discount brokers are in the volume-based business, so by default, if their business survives, they are more experienced than traditional agents.

This tactic works more often than you'd expect. People are terrified of making the wrong decision, so they pay a higher buyer agent commission or a listing agent commission.

I offer a home buyer rebate and lower listing fees than a traditional listing agent.

These agents also say discount agents are spread too thin and depend on volume to survive.  That doesn't add up.  More volume equals more real estate transactions, which equals more experience.

I've had the opportunity to talk to buyers and sellers who decided not to use me (can't win them all) because another agent convinced them my lower fees equaled less experience. Unfortunately, these buyers and sellers admitted to me they made the wrong choice, costing them thousands.

I've been a discount real estate broker for almost two decades, and I've always been one of Utah's top-producing agents.  

Utah Home Buyer agent commission rebate

Clients that purchase a house with me receive half the buyer's agent commission (BAC) as a rebate, aka refund or cash back.

Utah MLS Discount Listing Fee

I am a full-service discount listing broker in Utah. Your home will be listed on the local MLS and distributed to all major national websites, including Zillow, Trulia,,, and hundreds of Utah buyer's agent websites.

Service My Buyer's And Sellers Recieve
  • A full-service realtor

  • Framed company sign - For Sale Sign

  • Realtor supra key box

  • Unlimited broker advice

  • Professional photos

  • Contract negotiations

  • Inspection Repair Negotiations

  • Broker Attends Settlement

  • MLS listing on Utah's largest multiple listing service

  • Agent Reviews Your Closing Documents

  • Agent Home Showing Scheduling Service

  • Showing Feedback From Buyer's Agents

  • Buyers and sellers save money

  • Low flat fee of 1 percent (1%) when selling real estate

  • Lower buyer's agent fee in the form of a commission rebate

  • Support through the entire buying or selling process

  • My standard package is what others charge extra for the premium package.

  • No hidden fees

  • One of Utah's top-producing real estate agents.

Home Buyer Commission Rebate

Discount agents save you money!

Use our Utah discount real estate agents to buy a house, and we'll rebate up to half of our commission back to you.


Discount Agents Can't Afford To Market Your Property

discount real estate brokers in Utah can not afford to market


If the seller's agent offers to sell your home for a lower listing fee, how can they market your house properly? I regularly hear this from sellers during listing appointments. 

Why do sellers bring this up?  Because they heard it from another agent during an appointment to list their home for sale. 

Agents are trained to ask sellers if they're interviewing other brokers for the listing.  A yes or no response won't be enough. They'll ask, "If so, who?" 

If the seller tells the competing agent my name, they'll know they're up against a discounter.  During their listing appointment with the homeowner, they pull out all their tricks and scripts to convince sellers that only their full-price brokerage can sell their home for top market value and that hiring a discount real estate brokerage would result in a lower sale price.


Traditional real estate agents use this line to scare home sellers into working with them.

Fear is a great motivator. They'll say, "How can a discount broker afford to market your home properly if their commissions are so low?" 

That's an easy one.  There's PLENTY OF MONEY, even at a discount, for professional photography ($150), installing a yard sign (free), installing a supra realtor lockbox, listing the home for sale on the multiple listing service (MLS), printing shiny property information sheets (very inexpensive), hold an open house (free), and answer the phone when a prospective buyer calls. 

Please don't believe it when a traditional agent says their listing fee is six (6) percent so they can properly market your home. 

Even if they spent as much money marketing your home as they do on their expensive clothes and cars, it wouldn't result in a higher sale price for you. Remember, any marketing agents do to sell your home is plastered with the agent's information.  So, are you paying higher commissions to market your property or to market the agent's business? 

Pro Tip: Real estate agents spend very little on marketing. Don't believe me?  Ask them to show you receipts. 

Discount Realtors Are Desperate


Only desperate realtors would work twice as hard for half the salary.

The only reason to offer lower fees and great service is the agent is broke. Successful agents don't need to lower their rates because they're worth their listing fees and buyer agent commissions they charge.


In my experience, most real estate agents are desperate. I'm not being rude; I'm being factual. As mentioned above, Utah's average real estate agent will quit the business in 180 days.

After 18 years as a discount realtor in Utah, I've watched many of the full-service brokerages that told me my discount model would fail, go out of business, or leave the industry.

I don't view offering the same level of service or better for significantly less money as desperate. It is a smart business move in a very aggressive, cut-throat industry. There's a lot of meat on the bones in a real estate transaction, and it is only a matter of time before the tech-savvy sharks in Silicon Valley or Utah's Silicon Slopes smell the blood in the water and show up to feast.  Technology WILL force commissions much lower.

Discount Brokerages Have Hidden Fees

discount real estate brokers in Utah hidden fees


Are discount real estate brokerages too good to be true? Be careful of all their hidden fees.

Because traditional brokers only understand how to operate within their old-school model, they believe there must be a catch. Discount brokers must hide fees that will cost the clients additional money, which only becomes evident at the closing table.


The myth of hidden discount realtor fees might be the most ridiculous.

Discount real estate websites are not known for amazing home search capabilities or top-notch user interfaces. In fact, most discount agent websites are terrible at search and user experience, but they lead the industry in consumer cost transparency. lists the commission cost on the homepage. Try figuring out the commission to hire a listing broker or buyer's agent on Prudential, Caldwell Banker, Century 21, ReMax, or Keller Williams websites. I'll save you time. They don't list their commissions because they know it is too high.

Discount brokerage websites are exceptional at itemizing their costs to the potential client because they know the brokerage fee is the most important question to the user.

If there is one junk fee in the industry that gets my blood boiling, it's the brokerage document fee. Brokers in Utah are required to keep all documents for three years. In addition to the five (5) or six (6) percent commission commonly charged by agents, they have the nerve to add $300-$700 in broker junk fees.

Brokerage document fees are not technically hidden because they are listed on the listing agreement and the buyer broker agreement, but they don't disclose this juk fee on their company website.

The average home sale price in Salt Lake County is around $550,000, and a 2.5% listing fee or buyer's agent commission is $13,750.

Aaron Peters at offers the same services (Google reviews suggest better service) for half the commissions as a full-service brokerage without charging clients additional money for brokerage document fees.

You Do The Realtor's Job For Them


If you're paying half the commission, plan on doing half the work to buy or sell a home.


This depends on the discount brokerage. Aaron Peters, the founder of, offers full service for 50% of what typical agents commonly charge. Flat-fee MLS listing companies do very little, and you should plan on handling the majority of the work yourself. The business model of flat fee companies is not to offer full service. They are in the business of providing sellers access to the multiple listing service (MLS) and the massive exposure it offers home sellers. A flat fee company provides access, not service, and should only be used by advanced real estate investors.

Discount Real Estate Brokerages Will Costs You More Money

The math doesn't add up on this one, but let's dive in and look closer. Competitors say discount brokerages lack the knowledge to price a home correctly and the skill to negotiate optimal offers.


Discounters make such small commissions that they either don't know how to price a listing accurately or are not incentivized to price it correctly. They only care about selling the home quickly to collect their puny commission.


Every agent wants to sell homes quickly. That's how they put food on their family's table, but that doesn't mean they're not pricing homes to maximize their client's profits.

Who is more incentivized to recommend an offer not in the seller's best interest? The agent earning a $30,000 commission or a $15,000 commission? These commission examples are not arbitrary.

Real-Life Discount Listing Example

A few years back, I was competing for a listing against one of Utah's most exclusive luxury realtors, the gold standard (I prefer Bitcoin) of agents, for a $1,000,000 home in the Steeplechase community in Draper. I won't use the agent's name because I prefer not being sued, but let's call her Michelle (definitely not her name).

Michelle told the seller the house was not worth one million dollars and would not accept the listing unless the seller agreed to list for $900,000. Oh yeah, and her listing commission was 3%.

I believed Michelle's market analysis was low and thought they should list the house for $1m.

Within a few weeks, the seller had accepted a full-price offer and paid me half the listing commission Michelle was charging. Listing their Draper home with me (Aaron Peters), one of Utah's top-producing real estate brokers, netted the seller $115,000 more than the full-priced experienced luxury broker.

I sold their home for $100,000 more and $15,000 less in commissions.

Any Agent Can Lower Their Commissions To Attract Buyers and Sellers


Any agent can charge lower commissions, but they don't because they know their higher fees are justified by their value.


Agents are at the mercy of their broker and brokerage policies. Many agents would lower their commission if they could gain more clients but can not. Real estate agents must receive their broker's permission to discount commissions, and most brokers are stuck in the dark ages and refuse to lower commissions.

Discount Real Estate Agents Charge Money Upfront


This one is a little less mythical. Discount real estate brokerages charge an upfront fee even if your house doesn't sell.


discount real estate brokers in Utah up front fees

At, we do not charge upfront fees. We offer a lower fee structure than traditional agents, but you pay zero dollars if your property doesn't sell. You only pay our listing agent a commission if your property sells.

Upfront fees are common with Utah flat fee MLS listing brokers whose pricing is so low they need to cover their upfront cost of listing a home. Flat fee brokers have such small margins they can't afford to list your house on the local MLS and hope to recoup their cost if the home sells.

Professional photography, a Realtor Supra key box, and a yard sign cost a minimum of $200 per MLS listing. Utah flat fee brokers often have hundreds, even thousands of listings at once and usually allow the sellers to cancel anytime.

Zero upfront fees would put a flat fee broker out of business immediately.

It Cost Nothing For Buyers To Buy A Home

real estate brokers in Utah cost buyers nothing

No doubt homes would be less expensive if agents were not in the middle of every transaction.

This is also true for a can of Coke, Starbucks Coffee, or your favorite Sushi restaurant. People are always involved in products and services, which adds to the final cost.

I don't think eliminating buyer agents is the solution, but adjusting their compensation downward would go a long way with public perception about Realtors and the fees they charge.


Utah Buyer's agents insist on telling home buyers it costs NOTHING to use an agent to purchase a home. This doesn't make mathematical sense since the typical buyer's agent commission is 2-3% of the final home sale price.


If you eliminated the buyer agents (not a good idea) from the real estate transaction, you would eliminate the buyer's agent commission, ultimately lowering the price of the house.

I believe a better approach, and the exact approach I took decades ago, is to offer a commission rebate to the home buyers I represent. I rebate up to 50% of my buyer's agent commission (BAC), which can be used for closing costs (rate buy down) or received in cash after closing.

Discount Agent Conclusion

Discount real estate brokerages are not the bottom feeders the real estate industry is trying to make us out to be. We're simply offering an alternative to how real estate has been transacted for over one hundred years. Change is inevitable, and the industry is on the brink of the biggest changes ever.

Discount Agents Save You Money

List your house with our discount agents for ONLY 1.5% commissions. Half the fees other agents commonly charge. Buy a home , and we'll rebate you 50% of our commission at closing.

Utah Homes For Sale

Selling A House

1.5% Listing Commission

List your house for sale with a full-service discount real estate agent for half the fees commonly charged by traditional Utah brokerages.

Buying A Home

50% Commission Rebate

Work with one of Utah's top-producing Realtors to purchase your next home and receive a commission rebate at closing.

More Blogs You'll Love

Posted by Discount Agent on
Email Send a link to post via Email

Leave A Comment

Please note that your email address is kept private upon posting.