What is a transaction discount?

A transaction discount refers specifically to a reduction in the commission that is offered when clients pay directly for services, typically bypassing certain intermediaries like brokers. This type of discount incentivizes clients to engage more directly with service providers, which can streamline the transaction process and reduce costs for both parties. By eliminating traditional commission costs associated with intermediaries, clients benefit from lower prices while providers can maintain volume through direct engagements.

The other choices represent different types of financial interactions in real estate but do not align precisely with the definition of a transaction discount. For instance, a rebate to a broker does not involve a direct payment from the client that results in a commission reduction; instead, it incentivizes brokers. Similarly, a fee charged to landlords does not denote a discount but rather an expense for their services, and a reduction in service fees for repeat clients pertains to loyalty incentives rather than direct transactional pricing.