Given EBAs do not list properties for sale, what advise or referrals should we offer our clients who need to sell their current home first? I'd love to hear from EBAs who have experience in this matter. IE, how do you truthfully answer the inevitable question most often asked...
"Do I need to pay a 5 or 6% commission to sell my home, or does a discount Broker produce the same or better net selling price"

Any comments are welcome, but I'd really like to hear from EBAs about their experience when the client needs to sell first.

How many times are you going to post the same thing?

Anyway the Univeristy of Texas at San Antonio has completed a comprehensive study of 55,000 transactions in the Dallas-Ft. Worth metro area.

After adjusting for variables among homes in the study period and other factors they found that the average home sold for 1.7% less with a discounter and the sale took an average of 17 addtional days to complete.

A key conclusion:
"If this result holds up in additional studies, it would indicate that limited service brokerage offers no dollar advantages to the seller over typical brokerage when using the exclusive right to sell contract."

"The real estate industry will continue to evolve as technology and new business models are introduced. This study suggests that limited service representation is not necessarily a better deal than typical representation when considering exclusive right-to-sell listing agreements. Although results were less conclusive with regard to licensing levels, real estate consumers should be aware of the qualifications of agents hired to represent them."

The study also found that agent experience was a key to maximizing sale price.

Perhaps you should refer your clients to agents with more than two years experience.

http://recenter.tamu.edu/tgrande/vol13-1/1765.html

If I were a practicing EBA, I would make sure that my expertise would at least earn a decent referral fee from the refered listing brokerage.

I'm not an EBA but I would be finding some great listing agents to refer my buyer clients to.

I may or may not ask for a referral fee.

I know several EBAs who are heavy hitters and they all refer their sales out to top listing agents.