What most people don't understand about "discount" brokerages is that they are not full-service providers. Many people want the services of a full-service brokerage but want to pay discount prices. It just doesn't work that way. Discount pricing also means limited services. Let's take the extreme, a home-owner pays someone to list his/her property on the MLS for a flat fee. The responsibility to hold open houses, advertise, print up flyers, buy and install a For Sale sign, make appointments to show the property when the buyers are available, sit open houses, etc, etc, etc, NOT TO MENTION THE LIABILITY ASSOCIATED WITH PROPER DISCLOSURES, falls squarely on the home seller's shoulders. Think of it this way, if you were going in for surgery, would you ask for a discount doctor? Or ,if you were being sued by someone for everything you had, would you want to be represented by a discount lawyer? More to your point about discount brokerages affecting the real estate market...no, not in the way you may think. Discount brokers typically do well in a hot sellers' market because it doesn't take much to sell a home. However, they tend to close up shop in a buyers' market because it takes a marketing plan to effectively sell a home. Something discounters are not prepared to do.