Selling your home can be an expensive process. The average Realtor commission is 5.46%. This means that on a $400,000 home, you have to pay $21,840 as commission.
But there’s a way to save your hard-earned money. A 2 percent commission Realtor can offer you the same services as a traditional broker but at a discounted rate. Your listing agent fee will be 2% instead of the usual 3%. A competitive buyer agent commission is 2.5%. You now have to pay a 4.5% agent fee. That’s just $18,000!
You can lower this amount to $14,000 with Houzeo’s Platinum package. You get all the tools available to real estate agents at just 1% commission. Moreover, you can also manage your showings and offers 100% online.
Rankings: Top 2% Real Estate Commission Companies
We have compiled a list of the top Realtors that charge a 2 percent commission to help you make an informed decision.
| 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 2% Real Estate Commission Companies
1. Houzeo
#1 Flat Fee MLS Service
Houzeo.com
- Listing Fee: $399
- Available nationwide
4.9/5
(8,000+ reviews)
4.9/5
(8,000+ reviews)Houzeo is real estate company headquartered in New York.
Houzeo offers 4 Flat Fee MLS packages.
- Bronze Package – $399: This package offers Houzeo listing only for 6 months with 24 photos.
- Silver Package – $399+0.5% at Close: This offers maximum photos upload and provide you with seller disclosures.
- Gold Package – $429+0.5% at Close: It is Houzeo’s signature MLS package and includes all the technology Houzeo is known for like, Houzeo Showings, Houzeo Offers, and DigiTransact.
- Platinum – $449+1% at Close: It includes the assistance of a licensed broker to help you with negotiations, seller disclosures, and closing.
👉 Our Take: We recommend the GOLD plan. You’ll have access to Houzeo tech, making managing showings and offer negotiations easy! Confirm all prices on your particular state’s pricing page before you list.
» Houzeo Reviews: Houzeo is 100% online. You can finish listing formalities in less than 60 mins.
Houzeo is America’s #1 Flat Fee MLS service because of 4 reasons:
- Max Exposure: Houzeo MLS packages give you access to the MLS, Zillow, Trulia, Realtor.com, Redfin, and 100s of other websites.
- 5-star Customer Service: Houzeo has a fully staffed customer service desk available 6 days a week. Chats and emails are open 7 days a week.
- 100% Online: Houzeo is high-tech platform with its easy listing, fast changes, online showings, and online offers. Houzeo mobile app is also very powerful.
- No Hidden Fees: In most states, you’ll be paying just a small flat fee to list on MLS by owner. And remember, all fees are disclosed upfront, so there are no Houzeo hidden fees. You get to bypass the listing agent commission.
There are no dealbreakers with Houzeo.
» Is Houzeo Good for You? Houzeo addresses all Houzeo complaints from home sellers.
Houzeo is rated 4.9 out of 5 stars by thousands of home sellers on Google & Trustpilot.
» Houzeo Reviews: Houzeo is rated “Excellent“ by 8,000+ home sellers.
Houzeo is a Flat Fee MLS listing service that lets 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 $379. The Silver package is priced at $399, and the Gold package is priced at $379 + 0.5% (minimum $999) at closing. The full-service Platinum package is priced at $349 + 1% (minimum $999) at closing.
2. Ideal Agent
GOOD CUSTOMER SERVICE
Ideal Agent
- Listing Fee: 2% of Sale Price
- Nationwide coverage
- 5/5
(6,240+ Reviews)
5/5
(6,240+ Reviews)Ideal Agent is an agent matching company. It offers a single listing package for its sellers:
- Full Service (2% Commission): Ideal Agent charges a 2% commission on the home’s sale price. On an average home price of $400,000, you will be charged $8,000 to sell your house.
👉 Our Take: Ideal Agent offers full-service assistance for home sellers. However, it does not provide any cash rebates to buyers.
» What Is Ideal Agent? Know what Ideal Agent customers have to say about their services.
Ideal Agent offers certain advantages:
- Pre-Negotiated Commission: Ideal Agent has fixed the commission with their agents. This helps sellers to focus on the important aspects of the deal like showings, staging, home inspection, etc.
- Time-Saving: You will be paired with the most capable agent. They’ll save you time and effort by giving you step-by-step assistance.
- Dedicated Concierge: Their agents will assist you at each phase of the deal, from marketing to negotiation and closing.
» How Does Ideal Agent Work? Here is a detailed explanation of Ideal Agent services.
Ideal Agent offers certain disadvantages:
- No-Multiple Matching Agent: The ideal agent matches the seller with only one agent. You don’t get to choose the agent based on your requirements.
- Sub-Par Agent: Several customers complain about being assigned agents with low reliability.
- No Buyer Support: Ideal Agent isn’t a buyer-focused platform and they do not offer any significant benefits for home buyers.
Ideal Agent has a rating of 5 out of 5 on TrustPilot.
» Is Ideal Agent Worth it? Find out how Ideal Agent can help you get higher profit.
Ideal Agent is an agent-matching service headquartered in Florida. It connects sellers and buyers with partner agents in its network.
These agents pre-negotiate their commission with Ideal Agent. This fee is higher than the other agent matching services. You will have to pay a 2% commission from which the broker pays 25% to the company as a referral fee.
3. Prevu
HIGHLY QUALIFIED AGENTS
Prevu
- Listing Fee: 1.5% of sale price
- 5.0/5.0
(601 reviews)
Prevu 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 located in New York. It has highly qualified agents and over 500 positive reviews on Google.
However, Prevu has a small team of agents who deal with many clients. This limits your ability to select an agent of your choice.
4. Redfin
BEST TECH-ENABLED BROKERAGE
Redfin.com
- Listing Fee: 1% of Sale Price
- Available in 80+ U.S. Markets
- 4.3/5
(66+ reviews)
4.3/5
(66+ reviews)Redfin 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 66+ 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. It provides an elaborate listing agreement with a marketing plan for your home. However, this agreement specifies a long 18-day timeframe to list your property on the MLS.
Additionally, some customers have expressed concerns about the availability and professionalism of its agents.
5. SimpleShowing
MAXIMUM SAVINGS
Simple Showing
- Listing Fee: 1% of Sale Price
- Restricted coverage
- 5/5
(142+ Reviews)
SimpleShowing is a percentage-based discount broker which offers the house listing services at 1%. It also offers to pay 1% of the closing costs or $5,000 cashback on such costs.
👉 Our Take: The fixed 1% listing commission may be expensive if you have a less-valued home, say $150,000-$200,000. Instead, you should look for a flat fee pricing model.
SimpleShowing offers the following advantages:
- Professional Photography: They arrange for professional photography and videos of home with no additional charge.
- Local Agent: The agent will assist you right from valuing your home till closing.
SimpleShowing offers the following disadvantages:
- Not the Best Agents: SimpleShowing might not be able to match you with the best agent.
- Limited Coverage: It provides services in only 3 states – Florida, Texas, and Georgia.
SimpleShowing has a 5 out of 5 stars rating on Zillow.
SimpleShowing offers its services in Florida, Texas, and Georgia. Its 1% listing fee gets you a home valuation, professional photos, and paperwork assistance.
SimpleShowing has a 5-star rating on Zillow and a team of experienced local agents. They help you manage your real estate transaction from listing to closing.
How to Choose a 2% Commission Realtor?
Here are some of the factors to consider while looking for a 2 percent real estate agent:
- Pricing: Most discount brokerages charge a minimum fee or a 2% commission, depending on your home’s value. Ensure that this minimum fee doesn’t take away the lion’s share of the profits from your home sale.
- Technology: Opt for a company that uses cutting-edge technology. It should have a user-friendly website and an advanced tech stack. A Realtor who leverages technology for marketing, data analysis, and document management can offer a more efficient service.
- Quality of Services: Interview multiple brokers from different companies to understand who offers the best services. Check agent reviews on platforms like Zillow and Realtor.com.
How Much Can You Save With a 2% Commission Realtor?
With a traditional real estate agent, you have to pay a fee as high as 6%. This fee is split equally between the seller agent and the buyer agent. A discount broker can reduce the 3% listing agent fee to just 2%.
Although it may seem like a small fraction, a 2% commission can help you save thousands! Let’s take a look:
| 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 |
Why Would an Agent Agree to 2% Commission?
Here are some reasons why agents work for a 2% fee:
- It’s a Hot Seller’s Market: In the current low-supply seller’s market, commission rates have decreased due to increased competition for listings. This forces agents to reduce their commission rates.
- The Agents Lack Experience: Agents who are beginning their careers with no prior experience might agree to lower rates. This helps them attract more home sellers.
- The Agents Deal in Luxury Properties: Luxury real estate agents make tens of thousands of dollars even at low commission rates. For example, a 2% commission agent will earn $80,000 for a property sold at $4 million.
Risks of Using a 2% Commission Realtor
Although discount brokers greatly increase your savings, they have their downsides:
- Lack of Personalized Service: During our research, we came across customer complaints that some of the agents were not able to give dedicated time to their clients. This is because low commission real estate agents have to handle multiple clients simultaneously.
- Minimum Fees/Hidden Charges: Some real estate companies may have hidden fees not disclosed on their website. You might have to pay more than the advertised 2% commission rate at the time of closing.
Alternatives to 2% Commission Realtors
- Flat Fee MLS: Flat Fee MLS companies charge a standard rate to list your home on the MLS. The fees are usually set between $179-$399.
- Negotiate with your Agent: Negotiating with the agent is always on the table. Standard 2.5% to 3% rates are not that different from 2% commission. So, negotiate with your local agent to get a discounted rate.
- 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 my 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. Cash buyers let you skip the hassle of listing on the MLS and conducting inspections and appraisals.
Bottom Line
A 2% commission Realtor can offer significant savings in a competitive market. However, you must carefully consider factors like pricing, technology, and service quality. Otherwise, its drawbacks may prove to be heavy on your pocket.
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 fast at a fraction of the cost.
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.
» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why it is one of the best FSBO sites in America.
FAQs
What is a 2% commission Realtor?
A 2% 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 are 2.5% to 3%. Your total will be around 4.5% to 5%. This will give you almost 1.5% in savings.
What is the average Realtor commission?
The average Realtor commission was 5.46% in 2022. Typically traditional Realtors charge 2.5% to 3% commission. This means you will end up paying up to 6% in total real estate commissions.
Who pays Realtor fees?
It is standard practice for the seller to pay the Realtor fees of both the listing agent and the buyer agent.
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