Selling a house in America can be an expensive process. On average, a Realtor charges a 5.46% commission on a home’s selling price. 2% commission Realtors can save you 1% on a listing agent’s commission. Although it might seem less it can save you thousands of dollars.
However, you can save more with Houzeo’s Platinum package. You can get all the services at just 1% commission. Moreover, you can also manage your showings and offers 100% online.
Rankings: Best 2% Commission Realtors
The top 5 companies that offer listing services with lower commission rates are given below:
| Company Name | Listing Fee | Max Savings | 100% Online | 5-Star Reviews |
|---|---|---|---|---|
| Houzeo | $249 Flat Fee | ✅ | ✅ | ✅ |
| Ideal Agent | 2% Commission | ❌ | ❌ | ❌ |
| Prevu | 1.5% Commission | ❌ | ❌ | ✅ |
| Redfin | 1.5% Commission | ❌ | ❌ | ❌ |
| SimpleShowing | 1% Commission | ❌ | ❌ | ✅ |
Reviews: Top Companies Offering 2% Real Estate Commission
Check the company reviews given below to choose the right one for you:
1. Houzeo
100% ONLINE
Listing Fee: $249Houzeo is a high-tech platform that streamlines listings, updates, and online showings/offers. Choose from 3 Flat Fee MLS packages to simplify your home sale.
- Silver Package – $249 + 0.5% at Close: You can upload 24 photos, and your listing term will be 6 months. You can also make unlimited changes to your listing.
- Gold Package – $299 + 1% at Close: You can post the maximum number of photos, avail licensed broker assistance, get access to seller disclosures, and a premium yard sign.
- Platinum Package – $349 + 1.25% at Close: You get virtual full assistance from a licensed broker and a 12-month listing term.
Houzeo is America’s #1 Flat Fee MLS service because of these reasons:
- Max Exposure: Your home listing is syndicated to popular real estate websites like Zillow, Trulia, Realtor.com, etc., increasing its visibility.
- Quicker Sale: Houzeo’s Homes For Sale page showcases your home to thousands of buyers, which may result in a faster sale.
- 100% Online: You can list your home, manage offers, and close deals, all at your fingertips with a powerful mobile app.
- 5-star Customer Service: You have access to listing support and chat services 6 days a week.
- No Hidden Fees: What you see is what you pay. Houzeo mentions all of its fees upfront on its website.
There are no dealbreakers with Houzeo.
» Is Houzeo Legit? Discover why so many homeowners are choosing Houzeo to list their properties.
Houzeo is rated an impressive 4.9 out of 5 stars by thousands of home sellers on Google and Trustpilot. Homeowners also praise the Houzeo Mobile App, which helps them list, manage, and close their home sales seamlessly—right from their phones.
» Houzeo Reviews: Rated “Excellent” by 11,000+ happy home sellers.
👉 Our Take: We recommend Houzeo’s Gold Plan for most home sellers. It gives you maximum exposure, highest savings, and access to Houzeo technology features. A licensed broker will also assist you with pricing your home, offer negotiations, inspection, and closing.
2. Ideal Agent
Agent Matching Service
Listing Fee: 2% of Sale PriceIdeal Agent is an agent matching company. It offers a single listing package for sellers:
- 2% Commission: Ideal Agent charges a 2% commission to the listing agent, which is lower than traditional rates (typically 2.5 – 3%). On an average home price of $400,000, you will be charged $8,000.
👉 Our Take: The 2% listing fee is competitive, however, the buyer’s agent still gets a 2.5 – 3% commission, bringing the total commission to around 4.5 – 5%. The savings are notable but not as significant as flat-fee brokers.
Ideal Agent stands out with several attractive offerings:
- Top Agents: The platform only works with experienced agents from major brokerages like Keller Williams Realty and RE/MAX.
- National Network: Coverage extends across the U.S., making it a versatile option for sellers nationwide.
It’s important to be aware of these potential drawbacks:
- Limited Savings: Despite the reduced listing commission, the total commission cost isn’t drastically different from standard agents.
- Agent Pool: In less populated areas there may be fewer agents to choose from, limiting flexibility.
Ideal Agent has a rating of 5 out of 5 on Trustpilot.
» Ideal Agent Reviews: Does Ideal Agent benefit you in the 2024 market?
3. Prevu
LIMITED AGENT NETWORK
Listing Fee: 2% CommissionPrevu offers a single commission-based package to home sellers.
- 2% Commission: Your home gets listed on the local MLS after a detailed valuation and professional photography. Your Prevu agent manages showings, open houses, negotiations, and guides you through a successful sale.
Here are some green flags about Prevu that you must consider.
- Detailed Home Evaluation: The Prevu team helps you with a detailed evaluation of your home. They assist you in setting the right asking price for a quicker sale.
- User Friendly Website: Prevu’s website is simple to manage. The sellers can keep track of their listings easily.
There are some red flags with Prevu that you must know before choosing them.
- Comparatively Expensive: The 2% commission on the selling price can be expensive if compared to flat fee services.
- Limited Agent Network: Prevu has a small network of agents. This means that your home-selling process may get delayed.
- Unclear Commission Policy: Prevu’s website states commissions may change; that makes it difficult to estimate total savings.
Prevu has 5 out of 5 stars from 640+ reviews on Google.
👉 Our Take: We recommend Prevu to experienced sellers who are not in a hurry to sell their homes. For first-time sellers or those who want a quick sale, the limited agent network of Prevu may not be the best fit!
4. Redfin
Refund/Rebate Program
1-1.5% Listing FeeFor home sellers, Redfin.com has three main features:
- 1.5% Listing Fee: Redfin charges a 1.5% discounted listing fee. This fee is further reduced to 1% if you also buy a home with a Redfin agent within a year.
- Professional Assistance: The standard package includes services from listing to closing, that is, from pricing assistance to closing coordination.
- Redfin Concierge: For high-value luxury homes, Redfin offers services like home staging, deep cleaning, and select renovations for additional costs.
Redfin.com offers these features for home buyers:
- Technology-Driven Search: Redfin offers powerful search tools, including map-based searches, saved searches, and instant updates on new listings.
- Redfin Agents: Some Redfin agents may offer a different incentive structure than traditional commission-based agents, making negotiation possible.
- Refund/Rebate Program: In some markets, buyers receive a portion of the buyer’s agent commission back as a refund at closing.
Here are some advantages of choosing Redfin:
- Cost Savings: You pay significantly lower than the traditional 3% listing/seller agent commission. Plus, you could qualify for a rebate.
- Professional Marketing: Professional photography and 3D walkthroughs are a part of Redfin’s standard package. This enhances a home’s online presence.
- Advanced Technology: With 40+ filters to narrow down your search, the Redfin app makes it easy to find the right home.
- Local Agent Assistance: Local agents know their market better and can help you secure a good deal.
Here are some limitations we found with Redfin:
- Minimum Fees are Applicable: The 1.5% commission is a minimum percentage and varies by market.
- No Freedom in Agent Selection: You get an agent assigned automatically without having a choice in the matter.
- Service Variation: Redfin agents often handle a high volume of clients. This may limit personalized attention and reduce the range of services you receive.
- Poor Customer Reviews: Customers have complained that agents are often unreachable and unprofessional.
Redfin has an average rating of 4.3 out of 5 stars from 60+ reviews on Google.
» Redfin Reviews: The reality of the 1% fees, pros, cons, and alternatives!
Redfin delivers a tech-forward real estate experience. You get services like home pricing guidance, professional photography, and digital marketing. Redfin also serves as a home-buying tool as it lets users schedule showings and connect with local agents. However, you don't get to select your agent yourself.
5. SimpleShowing
LIMITED COVERAGE
Listing Fee: 1% CommissionSimpleShowing is a licensed full-service brokerage with just one package:
- 1% Listing Fee: This package provides full-service support from licensed agents who can assist you in your sale, right from listing to closing. You also get help with the paperwork for selling a house and can schedule home tours online.
Here’s what stands out about SimpleShowing:
- Maximum Exposure: Your home gets listed on the MLS and various national websites, including Realtor.com, Zillow, Trulia, etc.
- No Upfront Costs: You need not pay any fee to list your property. The 1% amount is deducted from the selling price after the sale is closed.
- End-to-End Agent Support: SimpleShowing offers pre-listing consultation, ongoing support, and contract assistance throughout the selling process.
- Access to Professional Photographers: You can opt for their professional photographers to help you get the best photos of your home.
SimpleShowing has the following downsides:
- High Listing Fees: You need to pay at least $5,000 as the listing fee, which is quite high, especially for a small-scale home.
- Limited Agent Pool: You can’t choose or switch agents if any issues arise with your assigned representative.
- Limited Coverage: They offer their services only in Georgia, Florida, and Texas.
SimpleShowing has 4.9 out of 5 stars on Google from over 110 reviews.
👉 Our Take: We recommend SimpleShowing to first-time home sellers for their their full-service support. However, their fees are on the higher side compared to some Flat Fee services that offer more tools at a lower cost.
How Much Can You Save With a 2% Commission Realtor?
You pay a 5% to 6% fee as a traditional real estate commission. This fee is split between the seller agent and the buyer agent. A discount broker can reduce the 3% listing agent fee to 2%. Let’s see how this small percentage can help you save thousands of dollars! Here’s an example:
| Selling Price | 2% Realtor Commission | 6% Realtor Commission | Total Savings |
|---|---|---|---|
| $250,000 | $5000 | $15,000 | $10,000 |
| $500,000 | $10,000 | $30,000 | $20,000 |
| $750,000 | $15,000 | $45,000 | $30,000 |
How to Choose a 2% Commission Realtor?
Here are some factors to consider before you choose a 2 percent commission Realtor:
- Charges No Extra/ Hidden Fees: The 2% commission Realtor shouldn’t be more than 2%. Choose an agent who offers a transparent pricing structure.
- Provides Full-Service: The agent must provide all the services that a traditional agent offers. It may include services such as MLS listing service, property marketing, handling all paper work, etc.
- Uses Technology: The Realtor should be up-to-date with latest technology for home staging, 3-D tours, and virtual property showings. Listings that have virtual home tours get 87% more views.
- Has Positive Client Reviews: These low commission Realtors must have positive reviews from genuine sellers. Shortlist those having a minimum of 3.5/5 rating. Further, consult those you shortlist and choose the right one for you.
Why Would an Agent Agree to a 2% Commission?
Here are some reasons why an agent would work for a 2% fee:
- Hot Seller’s Market: In the current low-supply seller’s market, commission rates have decreased due to increased competition for listings. This forces Realtors to reduce their average commission rate.
- The Agents Lack Experience: Newly licensed real estate agents may offer services at lower rates to attract listing projects.
- The Agents Deal in High-Value Properties: Some low commission real estate agents offer services exclusively for properties of higher resale value. They earn a huge amount even at low commission rates. For example, a 2% commission Realtor will earn a whopping $80,000 for a property sold at $4 million.
Risks of Hiring a 2% Commission Realtor
Although discount brokers greatly increase your savings, they have their downsides:
- Lack of Personalized Service: Some low-commission real estate agents work with multiple clients simultaneously to make their ends meet. Due to this, they would have limited time for personalized guidance and support.
- Potential for Hidden Charges: Some real estate companies may have hidden fees not disclosed upfront. They may charge extra for services like home staging, professional photography, or other marketing materials.
Alternatives to 2% Commission Realtors
- Opt for a Flat Fee MLS: Flat Fee MLS companies charge a standard rate to list your home on the MLS. The fees are usually set between $300-$500.
- Negotiate With Your Agent: As per the record 64% of agents have reduced their fees upon negotiation with sellers and buyers in the past.
- Sell to an iBuyer: Many iBuyers, like Opendoor and Offerpad, purchase hundreds of homes across U.S. markets. iBuyers can be a great option if you’re wondering how to sell your house fast.
- Sell to Cash Home Buyers: Individual cash home buyers and companies that buy houses for cash in the U.S make all-cash offers, usually within 24 to 48 hours.
Bottom Line
2% commission Realtors can offer significant savings in a competitive market. However, you must carefully consider factors like pricing, technology, and service quality.
If you’re looking for greater savings, opt for a Flat-Fee MLS company like Houzeo. Its user-friendly platform, expert support, and transparent pricing help you sell your home for just 1% commission.
Eager to Know How Houzeo Works?
We’ve got you covered. Check out the following video to understand how Houzeo works and why it is one of the best For Sale By Owner websites in the U.S.
How to List on MLS With Houzeo?
5 Easy Steps to List on MLS with Houzeo as FSBO
» Need More Clarity? Read these exclusive Houzeo reviews and learn why it is one of the best website For Sale By Owner in America.
Frequently Asked Questions
What is a 2% commission Realtor?
A 2% commission Realtor lists your home for 2% of the final listing price of your property. This is generally exclusive of the buyer agent's fee which is 2.5% to 3%. Your total will be around 4.5% to 5%. This will give you almost 1.5% in savings.
What does a Realtor do to earn their commission?
Realtors usually offer services that cater to the home selling and buying process. The services may include listings creation, home evaluation, negotiation, documentation, and more.
What is the lowest commission a Realtor will take?
The lowest commission a realtor typically takes is around 1% to 2% of the home's selling price. With a low commission Realtor, you usually save 0.5 to 1.5% on the traditional listing price.
Who pays Realtor fees?
Homeowners who want to sell their houses usually pay the Realtor fees. The commission is split between the listing agent and the buyer agent.
