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 | $399 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: $199Houzeo 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 – $199: You can upload 24 photos, and your listing term will be 6 months. You can also make unlimited changes to your listing.
- Gold Package – $249: You can post the maximum number of photos, avail licensed broker assistance, get access to seller disclosures, and a premium yard sign.
- Platinum Package – $299: 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.
- 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? Houzeo addresses home seller’s concerns with efficiency.
Houzeo is rated an impressive 4.9 out of 5 stars by thousands of home sellers on Google and Trustpilot.
» Houzeo Reviews: Rated “Excellent” by 10,000+ happy home sellers.
Houzeo is a Flat Fee MLS listing company that helps you sell your home without any agent commission. It offers the best combination of maximum savings, advanced technology, 5-star customer support, and listing exposure.
Houzeo’s Bronze package is priced at $399. The Silver package is priced at $399 + 0.5% at closing, and the Gold package is priced at $429 + 0.5% at closing. The full-service Platinum package is priced at $449 + 1% at 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?
Ideal Agent is an agent-matching service headquartered in Florida. It connects sellers and buyers with partner agents in its network. Its efficient customer support service guides clients throughout the selling process.
These agents pre-negotiate their commission with Ideal Agent. If you choose to work with them, you have to pay 2% instead of the conventional 3%. However, this 2% commission is associated with a minimum fee of $3,000.
3. Prevu
5.0/5.0
(601 reviews)HIGHLY QUALIFIED AGENTS
Listing Fee: 1.5% of sale pricePrevu is a full-service low commission brokerage based in New York that aims to change the old-school ways of the real estate market.
- Listing Agent Commission- 1.5%: Prevu charges a lower commission of 1.5%. It offers a full-service package at a low commission rate.
👉 Our Take: Prevu’s listing price is lower than traditional realtor commission, but it is still higher than other low-commission real estate companies.
» Prevu Reviews: Read our review of Prevu Real Estate & decide if it’s a good choice for you.
Prevu is a decent option when you are buying or selling a property.
- Qualified Agents: Prevu’s qualified agents provide real estate services at low commissions.
- Buyer’s Rebate: Buyers get a commission rebate of 2% of the purchase price.
- Serve a High Volume: Prevu relies on its team to serve a high volume of clients to offer discounts.
You should know about a few red flags that Prevu has. This can make your experience less satisfactory.
- Additional Charges: Buyer’s agent commission is not included in Prevu’s listing fees. This commission is up to 2.5%-3 % of the sale price.
- Limited Agents: Prevu’s team is small and its agents deal with higher volume. So you have limited options when it comes to selecting an agent.
- Lack of Personalized Experience: Since Prevu’s team handle a higher volume, the agents won’t be able to provide personalized services.
- Limited Coverage: Prevu Real Estate serves 6 states only- New York, Massachusetts, Connecticut, California, Pennsylvania, and Washington.
Prevu has 5.0 out of 5 Stars from 455 reviews on Google.
» Prevu Reviews: Read our review of Prevu Real Estate & decide if it’s a good choice for you.
Prevu Real Estate is a licensed brokerage company located in New York. It has highly qualified agents and over 500 positive reviews on Google.
Prevu charges a nominal 1% commission to list your house on the MLS. However, it has a high minimum fees as compared to other discount real estate companies.
4. Redfin
BEST TECH-ENABLED BROKERAGE
Listing Fee: 1% of Sale PriceRedfin does not disclose its pricing on its website. Sellers will have to pay common closing costs.
- It offers 0.5% buyer’s rebate. To avail this, you’ll have to buy and sell with them.
👉 Our Take: Redfin offers 1 rebate option but with a strict clause. While, other real estate companies are willing to offer a higher rebate.
» Redfin Reviews: The reality of the buyer’s rebate.
Here are some advantages of choosing Redfin:
- Advanced Technology: With 3D walkthroughs and 40+ filters to narrow down your search, the Redfin app makes it easy to find the right home from anywhere.
- Paired With Local Agents: Local agents know their market better. This can help you secure a good deal.
- Home Tour: You can see updated listings every 5 minutes on their website. You can also schedule a home tour for the same day.
- Nationwide Coverage: Redfin covers 80+ markets in the US.
Here are some limitations we found with Redfin.
- Strict Rebate Criteria: Clients who sell and buy with Redfin within one year get a rebate of 0.5%.
- No Freedom in Agent Selection: You get an agent assigned automatically without having a choice in the matter.
- Agents Are Less Incentivized: Unlike traditional agents who work for commission, Redfin agents get a fixed salary. This can demotivate them from offering you additional services.
- 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 is a licensed broker and covers 80+ markets in the US. Its technology enabled brokerage provides on-demand solutions to a wide residential real estate market.
Redfin connects you with a partner agent in areas that don’t come under their direct coverage. However, they may charge a commission higher than 1.5%.
5. SimpleShowing
1% COMMISSION
Commission: 1% of Sale PriceSimpleShowing is a licensed full-service brokerage that operates in Florida, Georgia, and Texas. They offer one package:
- 1% Listing Fee: This package includes full-service support, with licensed agents handling all aspects of the sale. They also provide marketing, home showings, and negotiations to finalize the sale.
👉 Our Take: SimpleShowing is a good option for selling a high-end home. However, its $5,000 minimum listing commission makes it more expensive for lower-priced homes than other brokers.
Here’s what stands out about SimpleShowing:
- Market Exposure: Homes are listed on the MLS and various national websites, including Realtor.com, Zillow, Trulia, etc.
- No Upfront Costs: The listing fee is only paid at closing, and is deducted from the home sale profit.
- Professional Guidance: Offers pre-listing consultation, ongoing support, and contract assistance throughout the selling process.
- Professional Photography: They have professional photographers to get the best photos of the home to list on MLS.
SimpleShowing has the following downsides:
- High Package Fees: You can’t get much profit on a home priced at $500,000, as you’d have to pay a minimum 1% listing which is around $5,000.
- Limited Agents: They are a small team so you do not get to choose or change the agent in case of disputes.
- Limited Coverage: They have agents only in 8 cities: Miami, Dallas, Atlanta, Orlando, Tampa, Savannah, Fort Lauderdale, and Fort Worth.
SimpleShowing has 4.9 out of 5 stars on Google from over 110 reviews.
SimpleShowing is a discount real estate brokerage that offers its services in Florida, Texas, and Georgia. It has a 5-star rating on Zillow and a team of experienced local agents.
SimpleShowing charges a 1% commission for listing your home on the MLS. However, the buyer’s agent commission (usually 2.5 to 3%) is still applicable.
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.
