Whether you’re selling a luxury condo in New York or a single-family home in San Francisco, you will spend a whooping 6% in commissions. But, a 2% Realtor can help you save on your commission expenses.
As the names suggests, 2% commission Realtors are discount brokers who work at 2 percent commission. They offer all the services similar to a full-service agent, but at a 2% fee instead of 3%.
We have compiled a list of top 2% Realtors to help you make an informed decision.
🚀 Key Takeaways
- Increasing competition has led to agents dropping their commission rates.
- You may get inconsistent and below-par services with 2% Realtors.
- We recommend selling with Flat Fee MLS companies to save thousands, without compromising on the service quality.
Rankings: Top 2% Real Estate Commission Companies
|Company Name||Listing Fee||Max Savings||100% Online||5-Star Reviews*|
|Ideal Agent||2% |
Reviews: Top 2% Real Estate Commission Companies
#1 Flat Fee MLS Service
Houzeo offers 4 Flat Fee MLS packages.
- Bronze Package – FREE: This package offers Houzeo listing only for 6 months with maximum photos. You pay a $49 refundable fee for a yard sign and receive your refund after sending a selfie with it.
- Silver Package – $349+: This includes everything that home sellers typically look for.
- Gold Package – $399+: It is Houzeo’s signature MLS package and includes all the technology Houzeo is known for Houzeo Showings, Houzeo Offers, and DigiTransact.
- Platinum – $999+: It includes the assistance of a licensed broker to help you with negotiations, disclosures, and closing.
👉 Our Take: We recommend the GOLD plan. You’ll have all the access to Houzeo tech, making managing showings and offer negotiations easy!
» 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. This is rare in today’s world.
- 100% Online: Houzeo is high-tech. For you, this means easy listing, fast changes, online showings, and online offers. Houzeo Mobile App is also very powerful.
- No Listing Commission: In most states, you’ll be paying just a small flat fee to list on MLS. Houzeo covers 47 states + DC!. And remember, all fees are disclosed upfront, so there are no Houzeo hidden fees.
There are no dealbreakers with Houzeo.
» Houzeo Reviews: Houzeo is rated “Excellent” with a 4.9 out of 5 star rating by 4,521 home sellers on Google Reviews and Trustpilot!
Houzeo is rated 4.9 out of 5 stars by thousands of home sellers on Google & Trustpilot.
» Houzeo Reviews: Check out how Team Houzeo has addressed all Houzeo complaints from home sellers.
Houzeo.com is a top-ranked Flat Fee MLS service. Houzeo provides an unbeatable combination of max savings, 5-star customer support, and cutting-edge technology.
When you list on the MLS via Houzeo, you get a personalized dashboard, a 100% online platform, and timely customer service—at a flat rate.
BEST TECH-ENABLED BROKERAGE
Redfin is America’s #1 discount real estate brokerage. This low-commission broker specializes in home buying. Redfin.com’s technology is what sets it apart from all other platforms.
- Redfin Full-Service Agent – 1.5% Commission: This is a full-service package. This includes pricing assistance, listing paperwork, negotiation support, etc.
- Redfin Concierge – 2.5% Commission: The “Concierge” plan includes everything from the Full-Service package. Additionally, it includes services like professional cleaning, home staging, and everything.
- Redfin Premier Agent – 1.5% Commission: This package is exclusively for luxury properties and includes everything that comes with the Full-Service package.
👉 Our Take: Redfin.com is a good option if you are looking for a nationwide discount real estate broker. We recommend its concierge plan because it includes everything.
» Redfin Reviews: The Reality of 1% Fees, Pros, Cons, & Alternatives!
Here are some advantages of choosing Redfin:
- Advanced Technology: Redfin is primarily known for its advanced tech platform and mobile app.
- Full-Service Agents at Low Commission – 1.5%: Redfin’s full-service package is priced at 1.5%. It saves you thousands compared to the traditional 3% listing commission.
- Buyer Rebate – 0.5%: Clients who sell and buy with Redfin within one year get a rebate of 0.5% in the second transaction. However, this offer is available with the Full Service Plan.
- Detailed Paperwork: Redfin provides the necessary paperwork and an elaborate listing agreement with a marketing plan.
- Nationwide Coverage: Redfin covers 80+ markets in the US.
In our research, we found some red flags of Redfin, that could make your experience less satisfactory.
- Lack of Personalized Services: Customers have often complained that Redfin agents are not able to give personalized service, as they serve a high volume of clients.
- Poor Customer Reviews: Customers have complained that agents are often unreachable and unprofessional.
- Slow Listing Process: According to Redfin’s listing agreement, a Redfin property takes 18 days to list on MLS. Services like Houzeo will list you on the MLS within 24 to 48 hours.
- Limited Agent Selection: As per customer reviews, Redfin lacks an array of agents. This means you get an agent assigned automatically without having any 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 services apart from Redfin’s defined services.
Redfin has an average rating of 3.3 out of 5 on Consumer Affairs.
» Redfin Reviews: The Reality of 1% Fees, Pros, Cons, & Alternatives!
Redfin is one of the most popular discount brokers in the US, primarily known for its mobile app. The company gives you advanced tech support and full-service agents for a 1.5% commission.
Before you choose Redfin, make sure to check out its reviews online. Most of the reviews complain about the agent’s inconsistent services.
3. Ideal Agent
GOOD CUSTOMER SERVICE
Ideal Agent is among the top 3 discount brokerages. It is an agent matching service that specializes in home selling.
- Full Service – 2% Commission: The full service package will get you all the services from start to end. This includes professional photos, 5-star service, negotiation, and closing assistance.
👉 Our Take: Ideal Agent is a good choice for home sellers. They set a high bar for recruiting agents, which means sellers get to work with the top-performing agents in their locality.
Ideal Agent helps sellers find quality low commission real estate agents.
- Agent Matching: You will be matched with an agent from the top 1% of agents in your locality.
- Profit Maximization: Your agent will leverage the best features of your house and help maximize your sale profits.
- Dedicated Concierge: Professional photography is inclusive of the package in addition to marketing, negotiation assistance, and closing.
- Good Customer Service: They have stellar customer reviews with a close to 5 star rating.
Ideal Agent has some drawbacks we came across in our research.
- Low Savings: Ideal Agent charges more than most low commission companies. Customers often complain about undisclosed additional charges.
- Outdated Technology: They have incorporated weak technology. This makes their agent matching algorithm inconsistent.
- No Buyer Support: Ideal Agent isn’t a buyer-focused platform and they offer no significant benefits for home buyers.
Ideal Agent has an average rating of 4.9 out of 5 from 5,534 reviews on TrustPilot.
» Ideal Agent Reviews: Check out the customer reviews for Ideal Agent on Trustpilot.
Ideal Agent is an agent matching service that connects sellers and buyers to expert agents. They claim to offer the best agents from the top 1% of sales contributors in the local markets.
Before you choose Ideal Agent, check out its reviews online. Customers often complain about paying more than advertised and inconsistent agent services.
SimpleShowing, like any other low-cost real estate broker, matches sellers with real estate agents.
- Listing Agent Commission- 1%: SimpleShowing agent provides full-service MLS listing at a 1% commission rate. Along with this, there are premium lockbox charges that increase the seller’s cost.
- Buyer’s Agent Commission-3%: Apart from the listing commission of 1%, the seller has to pay a 3% commission to the buyer’s agent also. This sums up to a total of 4% commission at the end.
👉 Our Take: SimpleShowing is a good option if you are looking for a 1% listing agent in Florida, Texas, and Georgia.
SimpleShowing is a decent option when buying or selling.
- Technical Support: SimpleShowing provides a great technological experience to its clients. They can book their home tours using their online services.
- Buyer’s Rebate: SimpleShowing rebates a portion of its commission to eligible home buyers.
- Experienced Agents: It has a team of experienced local agents. You can rely on them for a smooth real estate process.
You should know about a few red flags that SimpleShowing has. This can make your experience less satisfactory.
- Hidden Charges: Buyer’s agent commission is not included in the SimpleShowing’s listing fee. This commission is upto 2.5%-3%.
- Buyer’s Rebate Eligibility: Buyer is eligible for a refund only if the buyer uses SimpleShowing as their Buyer Broker.
- Lender’s Approval: Some lenders may not allow buyers to receive the refund from SimpleShowing. Lenders consider contract, mortgage products, and pricing policies to allow the buyer receive full or a part of rebate amount.
- Minimum Commission: SimpleShowing has minimum commission of $3,500. Rebate applies only if the minimum commission accounts to $3,500.
SimpleShowing has 4.9 out of 5 stars from 335 reviews on Zillow, Google, and Trustpilot.
SimpleShowing’s brokerage services provide a top-notch customer experience. You can rely on their local agents for your real estate transactions.
They also charge $5,000 as their minimum fee. Only buyers who hire agents through SimpleShowing are eligible for a refund. The buyer’s rebate also requires the lender’s clearance.
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 if they choose Prevu for buying a house.
- 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 trevu’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.
- 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 has highly qualified agents to provide seller’s real estate services at a low commission rate. It also offers one of the most significant commission rebates for buyers.
Prevu charges additional fees of 2.5%-3% as buyer’s agent commission. It has a small team of agents who deal with a higher volume of clients. This limits the options of selecting an agent you prefer.
How Does a 2% Real Estate Commission Work?
In a traditional real estate transaction, you will generally pay up to 6% real estate agent comission.
Opting for a 2% commission Realtor helps you save more money. The seller agent’s fee and buyer’s agent fees will bring down your total rate to 4.5% to 5% of the final price. This gives you almost 1% to 1.5% in savings!
Why Would an Agent Agree to 2% Commission?
Here are some reasons due to which agents work at 2% fee:
- It’s a Hot Seller’s Market: In a seller’s market, the commission rates tend to drop slightly. A low supply of inventory leads to greater competition for listings. This forces agents to reduce their commission rates to get more listings.
- The Agents Lack Experience: Beginner agents with no solid sales history 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 even at low commission rates. For example, a 2 percent commission agent will earn $60,000 for a property sold at $3 million.
Who Should Opt for a 2% Commission Realtor?
Sellers who prioritize savings should consider low-commission real estate agents. They usually provide a similar level of services as conventional Realtors but at a discounted rate. This could mean BIG savings. However, it may not necessarily be true.
📌 Low commission rates do not always lead to greater discounts.
The average commission rate varies nationwide and certain states charge hefty minimum fees. Thus it’s essential to look into the various charges applicable in your state before selecting a real estate agent.
Also, most traditional Realtors are open to negotiating their rates. Thus you don’t necessarily have to compromise on the quality of the services while saving a lot of money.
How to Choose a 2% Commission REALTOR
Here are some of the factors to consider while choosing a 2% commission Realtor:
- Pricing: Most 2% real estate companies charge minimum fees as part of the commission. Research 2% realtors in your area to know how much you would shell out.
- Technology: Choose a 2% company with cutting edge technology that can provide you with a digital dashboard to manage your transactions.
- Quality of Services: Interview multiple real estate agents from different companies to understand who offers the best services. You can also read agent reviews online on platforms like Zillow and Realtor.com.
How Much Can You Save With a 2% Commission Realtor?
Although it may seem like a small fraction, 2% commissions can help you save thousands! Your total savings depend on the listing price of the house. Higher sale price = greater savings.
Here is the table showing how much you will save working with a 2% real estate company:
|Selling Price||2% Realtor Commission||6% Realtor Commission||Total Savings|
*Calculated using a 2% listing fee and a 3% buyer’s agent commission
Risks of Using a 2% Commission Realtor
- Low Quality Services: Most 2% commission Realtors work with broker franchises. The service quality you receive will highly depend on your choice of franchise. There’s no guarantee of good quality service.
- Lack of Personalised Service: During our research, we came across customer complaints about a lack of availability of agents. This is generally because low-commission agents have to handle multiple sellers at once. This leaves them with less time to devote to each client.
- Minimum Fees/Hidden Charges: Some real estate companies charge minimum fees as part of the real estate agent’s commission. You might have to pay more than the advertised 2% commission rate at closing.
Alternatives to 2% Commission Realtors
- Flat Fee MLS: Flat Fee MLS companies charge a standard rate to list your home on multiple listing services (MLS), an online database of homes in your region. The fees are usually set between $179-$399.
- Hire a Discount Real Estate Broker: Discount real estate brokers offer all the services of a traditional broker for a discounted commission. Typically, discount brokers will charge between 0.5% to 2% commission to list and sell your home.
- Negotiate with your Agent: Negotiating with the agent is always on the table. Standard 2.5-3% rates are not that different from 2% commission. Thus, negotiate with your local agent to get a discounted rate.
In today’s market, several Realtors offer services at discounted rates. Research the different companies before selecting a 2 percent commission Realtor.
As per research, Houzeo is the top low-commission company. Houzeo outperforms its competitors in all parameters – from technology to customer rating.
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.
What is Houzeo?
An overview of what the platform is all about
» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why it is one of the best FSBO sites in America.
What is a 2% commission realtor?
A 2% realtor lists your home for 2% of the final listing price of your home. This is generally exclusive of the buyer's agent charges which are 2.5%-3%, so your total will be around 4.5%-5%, give you almost 1.5% in savings.
What is the average realtor commission?
Traditional realtors usually charge 2.5%-3% of the final listing price of your home for both the buyer and the seller's side. This means you will end up paying up to 6% in total real estate commissions.
Is 2% a good commission?
A 2% real estate commission is a good option for home sellers keen on saving big, although some 2% commission realtors might not provide full package services as a traditional realtor.
Who pays Realtor fees?
It is standard practice for the SELLER to pay the Realtor fees of both the listing agent and the buyer's agent.
Is a 2% real estate commission fair?
Several realtors in the market offer full services at discounted rates instead of the conventional fees, so it is fair to charge 2% real estate commission.
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