Whether you are selling a single-family house or a luxury condo, you pay around 6% in commissions. That’s a whopping $24,000 on a $400,000 home. But, other than the commissions there are additional costs involved in selling a home.
For example, the cost to sell a house ranges from 8% to 10% of the transaction price. These consist of closing costs and agent commissions. Adding seller concessions and home staging increases this cost to 12% to 15% of the sale price.
A top discount broker can offer all the traditional services at a 3% total commission rate. This includes the listing and buyer agent commissions. On the other hand, FSBO companies like Houzeo help you list your home on the MLS for a flat fee.
Rankings: Best 3% (Or Less) Commission Realtors
We have compiled a list of Realtors with whom you will pay 3% (or less) on your next real estate transaction.
| Company | Listing Fees | Max Savings | 100% Online | 5-Star Reviews |
|---|---|---|---|---|
| Houzeo | $399 Flat Fee | ✅ | ✅ | ✅ |
| SimpleShowing | 1% Commission | ❌ | ❌ | ✅ |
| Ideal Agent | 2% Commission | ❌ | ❌ | ✅ |
| UpNest | Decided by Agent | ❌ | ❌ | ✅ |
| Redfin | 1.5% Commission | ❌ | ❌ | ❌ |
Reviews: Best 3 Percent (Or Less) Commission Realtors
1. Houzeo
BEST DISCOUNT REAL ESTATE SERVICE
Listing Fee: $249Houzeo leads in discount real estate services with 20M+ active real estate listings on its platform. You get to choose from 3 packages:
- Silver Package – $249: Your home is listed on your local MLS with 24 photos for 6 months. It is also visible on Zillow, Trulia, etc. You get unlimited listing changes, open houses, and tools like Houzeo Showings and Houzeo offers.
- Gold Package – $299: You get all the benefits in the Silver package plus maximum photos and licensed broker assistance in this package. You also get seller disclosures and a premium yard sign that makes your listing pop.
- Platinum Package – $349: You get everything in the Gold Package, along with virtual full-service support and a personal concierge. Plus, all the buyer and agent calls are forwarded to you along with a 12-month listing term.
Note: Expect an additional fee of 0.5% to 1.25% at closing.
Here are the key reasons why Houzeo is one of the top discount real estate services:
- Max Savings: Houzeo’s flat fee packages help you skip agent commissions. Plus, with Platinum package, you get professional assistance similar to that of traditional agents.
- 100% Online: You can manage your listing, showings, and negotiations from your phone with the Houzeo Mobile App.
- Instant Social Sharing: You can post your home listing across Facebook, WhatsApp, LinkedIn, and X in an instant.
- 5-Star Customer Service: Houzeo has a 5-star customer support and chat service. You can access them 6 days a week.
- No Hidden Charges: All costs are disclosed upfront on Houzeo’s website, so you don’t have to worry about any hidden fees.
There are no dealbreakers with Houzeo.
Houzeo is rated 4.9 out of 5 stars on Google and Trustpilot.
» Houzeo Reviews: With over 11,100 happy customers, Houzeo is the most trusted discount real estate broker.
👉 Our Take: We recommend Houzeo’s Gold plan for most home sellers. It combines Houzeo’s advanced technology, maximum exposure, 5-star customer service, and virtual broker assistance. Plus, you can save 2% to 5% on commissions at closing.
Houzeo.com is the #1 ranked Flat Fee MLS service. Houzeo provides an unbeatable combination of max savings, 5-star customer support, and advanced technology.
Although it isn’t a 3% commission company, you can still save thousands by listing on the MLS with Houzeo! Houzeo gets you a personalized dashboard, a 100% online platform, and timely customer service—at a flat rate.
2. 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.
SimpleShowing offers its services in Florida, Texas, and Georgia. It charges a 1% commission or a minimum $5,000 listing fee. This includes a home valuation, professional photos, and paperwork assistance.
Buyers hiring agents through SimpleShowing are eligible for a refund of up to 1% of the home price. However, the rebate offering is subjective to the agents employed by buyers.
3. 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?
Steve Johnston established ldeal Agent in 2016. It is headquartered in Tampa. It offers all the traditional realtor services at a 2% commission on the home sale value.
Past customers have always praised Ideal Agent for pre-negotiated commissions. However, people have faced inconsistent agent service due to its agent matching service.
4. UpNest
Negotiable FEES
Listing Fee: Varies as per the agentUpNest offers agent-matching services. Here’s how it works:
- No Upfront Cost: UpNest connects you with top local real estate agents at no upfront cost. Agents will discuss commission rates, fees, and potential discounts directly with you.
Here’s what UpNest offers:
- Multiple Agent Proposals: Get 3–5 commission quotes from top local agents. Compare options easily without contacting agents yourself.
- Quick Turnaround: Receive agent matches within 24 hours of signing up.
- Transparent Pricing: View all commission rates and potential savings upfront. There are no hidden fees or pressure to commit.
- Nationwide Coverage: It offers service throughout the US. It connects you with the local agent who has current market insights.
Here are some of the downsides of working with UpNest:
- No Guaranteed Savings: UpNest does not offer guaranteed savings. Instead, each agent sets their own listing fee.
- No Control Over Agent Selection: UpNest shows you commission quotes from selected agents. As a result, you might miss out on other qualified agents who are part of their network.
UpNest has a rating of 4.7 out of 5 stars on Google.
» UpNest Reviews: Is UpNest actually saving you money in 2024? Read to find out.
👉 Our Take: With UpNest you get multiple real estate agent options to choose from. However, agents' commission rates and qualifications can vary significantly, and the quality of service may depend on the broker you select.
UpNest is a licensed agent-matching brokerage. It is headquartered in San Francisco, California. Move, Inc. (Realtor.com’s parent company) acquired Upnest in June 2022. It offers services nationwide.
With Upnest your ability to negotiate real estate commissions would be a key factor in the deal. In other words, you may end up paying a higher commission for the agent resulting in lesser savings.
5. Redfin
NATIONWIDE BROKERAGE
1.5% Listing FeeRedfin offers two packages for home sellers based on the type of properties they want to sell.
- Redfin Full-Service Agent – 1.5% Commission: It is a standard full-service package for listing, marketing and closing your sale.
- Redfin Premier Agent – 1.5% Commission: This is a high-end service for luxury properties that includes additional marketing and services for high-end buyers.
Note: If the sellers buy a property with Redfin, they have to pay only 1% of commission as listing fee instead of 1.5%.
Here are some advantages of choosing Redfin:
- Advanced Technology: Redfin is primarily known for its high-tech platform and mobile app.
- Near Nationwide Coverage: Redfin covers 50 states in the US.
- Assistance Through Closing: Redfin agents guide you through paperwork, marketing plans, and negotiations to make your closing easy and faster.
Here are some drawbacks of Redfin based on their customer reviews:
- Pricing Inaccuracy: Many sellers have complained that a lot area, a gated compound, or a city location are not considered during valuation.
- 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.
- Lack of Customer Service: There are a few negative reviews about the lack of personal attention by Redfin agents.
- 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.
- Lack of Personalized Services: Due to agents handling multiple clients at once, customers have often complained that Redfin agents are not able to give personalized service.
Redfin has 3.7 out of 5 stars from 30+ reviews on Google.
» Redfin Reviews: Read more to make an informed decision before selling your home.
👉 Our Take: We recommend Redfin for its advanced technology. However, some flat fee services offer you the same technology and more at much lower costs.
Redfin is one of the popular real estate companies. It covers 80+ markets in the U.S. It offers a 1% discounted commission for buying or selling your home with a Redfin agent. Moreover, buyers are eligible for a 0.5% rebate.
Redfin provides an elaborate listing agreement with a marketing plan for your home. However, this agreement specifies an 18-day timeframe for listing your property on the MLS. Whereas, other modern-day tech companies get your listing live on the MLS within 24 – 48 hours.
How 3 Percent Commission Realtors Work?
Typically, as a home seller, you will pay a 3% commission charge to each of the two agents involved in your home sale.
- Listing Agent: This agent represents your interests and markets your home. They list your home on the local multiple listing service (MLS) and other real estate websites.
- Buyer Agent: This agent receives a 2.5% to 3% commission for introducing potential buyers to the property.
However, you never pay the agent commissions out of your pockets. The commission amount is adjusted in the total sale value. This happens at the time of closing.
Also, Realtor commissions are completely negotiable. So, in the case of a discount broker, you can negotiate to reduce the commission rate for both agents.
How to Choose a 3% Commission Realtor?
If you are willing to pay a 3% commission, hire the finest. Do not settle for “good – enough”. Here are some parameters to choose the best Realtor.
- Pricing: Many discount brokerages typically impose either a fixed minimum fee or a 3% commission, contingent upon the value of your property. Make sure that the minimum charge does not significantly reduce the home sale proceeds.
- Technology: Choose a 3% company with cutting-edge technology that can provide you with a digital dashboard to manage your transactions. A Realtor who uses technology for marketing, data analysis, and document management can offer a more efficient service.
- Quality of Service: 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 3 Percent Commission Realtors?
A traditional Realtor will charge up to 6% in commissions, which is equally split between the seller agent and buyer agent. However, a 3% Realtor will charge you half of the total commissions.
Although it might seem like a small fraction, a 3% commission can help you save thousands! Here is the table that explains your total savings:
| Selling Price | 3% Realtor Commission | 6% Realtor Commission | Total Savings |
|---|---|---|---|
| $250,000 | $7,500 | $15,000 | $7,500 |
| $500,000 | $15,000 | $30,000 | $15,000 |
| $750,000 | $22,500 | $45,000 | $22,500 |
Why Would an Agent Agree to 3% Commission?
Here are some reasons why agents work at a 3 percent fee:
- It’s a Hot Seller’s Market: Since there are fewer homes for sale on the market, this increases the competition among buyers. Moreover, as market conditions shift, commission rates decrease, pushing the agents to reduce their commissions.
- 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 of dollars even at low commission rates. For example, a 3 percent commission Realtor agent will earn $30,000 for a property sold at $1 million.
Risks of Using a 3% Commission Realtor
- Lack of Personalised Service: In our research, we found customer complaints about the lack of agent availability. Since low-commission agents manage multiple clients simultaneously, this hampers the quality of personalized service.
- Minimum Fees/Hidden Charges: Some real estate companies charge a minimum fee as agent commissions. Additionally, these companies may also have undisclosed hidden fees. So, you might end up paying more than the advertised commission rate.
Alternatives to a 3% Commission Realtor
If saving money is your priority, you can go with the following options:
- Flat Fee MLS: Flat Fee MLS companies charge a standard rate to list your home on multiple listing services (MLS). The fees are usually set between $179 and $399.
- Negotiate With Your Agent: Negotiating with the agent is always on the table. Standard 2.5% – 3% rates are not that different from 3% commission. Thus 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 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. Cash buyers let you skip the hassle of listing on the MLS, inspection, appraisal, etc.
Is a 3% Commission Realtor Worth?
Yes! 3 percent commission Realtors are worth the effort considering you can negotiate for a better offer. Make sure you research and locate a top discount real estate broker. Compare fees, services, and experience to find someone who fits your requirements and budget.
If you wish to save on the 3% commission, sell your home by owner. Houzeo emerges as a top alternative in these types of companies.
With Houzeo, you can get your home on the MLS for a small flat fee. You get access to advanced tech like offers dashboard, showings management, etc. to make your selling journey easy.
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.
Frequently Asked Questions
What is the average agent commission?
The average realtor commission is 5-6%, however it may be closer to 4-5% for expensive properties (costing $1 million or more). Prior to the signing of a contract, the seller and listing agent negotiate the price.
Which is the best discount brokerage below 3% commission?
Various discount brokerage provide services that can help a home seller. Amongst them, Houzeo is a great option for a quick and smooth home sale experience. SimpleShowing and Ideal Agent are other great options for home sellers.
Is 3% a good commission fee?
A 3% real estate agent fee is considered a competitive and cost-effective option. It can provide significant savings compared to the traditional 6% commission. However, the suitability of a 3% fee depends on the type of the Realtor, level of services and local market exposure.
