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
#1 Discount Real Estate Service
Houzeo.com
- Listing Fee: $399
- Available nationwide
4.9/5
(8,400+ Reviews)
4.9/5
(8,400+ Reviews)Houzeo is a top technology-driven real estate platform. It offers 4 different packages:
- Bronze Package ($399): List your house for 6 months. You can upload 24 house photos.
- Silver Package ($399+0.5% at Close): List your home for six months and post maximum photos. Unlimited open houses and listing modifications are included in this package.
- Gold Package ($429+0.5% at Close): This gives you all the benefits of the Silver package. It also provides licensed broker assistance, contract review, etc.
- Platinum ($449+1% at Close): This package offers virtual full-service support with a licensed broker. You can list for 12-month. Brokers assist you in negotiations, disclosures, and closing.
👉 Our Take: We recommend Houzeo to all home sellers. The company has an excellent customer rating of 4.9 out of 5 stars. It has extensive coverage across 47 states + DC, a feat achieved by only a handful of other services.
» Houzeo Reviews: Houzeo is 100% online. You can finish listing formalities within 60 minutes.
These are the key features that make Houzeo one of the top discount real estate brokers:
- Significant Commission Savings: You will pay just a small flat fee to list on MLS. On average, home sellers who used Houzeo saved $11,490.
- No Hidden Fees: All costs are disclosed upfront so you don’t have to worry about hidden charges.
- Near Nationwide Coverage: Houzeo operates in 47 states and DC, with ongoing plans for expansion.
- Max Exposure: Houzeo packages give you access to renowned MLS companies.
- Advanced Technology: Eliminate the hassle of extensive paperwork. E-signature and online forms make house listing quick and easy.
- 5-star Customer Service: Dedicated customer support addresses your every concern easy.
- Mobile App: Houzeo’s mobile app lets you manage showing requests from verified buyers and buyer agents. You can either accept, reject, or reschedule showings at your convenience.
There are no dealbreakers with Houzeo.
» Houzeo Reviews: Houzeo is rated “Excellent” by 8,400+ happy customers on Google Reviews and Trustpilot!
Houzeo Reviews: With over 8,400+ happy customers, Houzeo is the most trusted discount real estate broker.
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
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. 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
GOOD CUSTOMER SERVICE
Ideal Agent
- Listing Fee: 2% of Sale Price
- Nationwide coverage
- 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.
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
UpNest
- Listing Fee: 4.3% of the Sale Price (or as decided by the agent)
- Available in all major cities
- 4.7/5
(295+ Reviews)
4.7/5
(295+ Reviews)UpNest is a marketplace that connects home sellers and buyers with local agents.
- Pricing: UpNest does not charge you any upfront fee. It allows their agents to discuss the pricing with you like commission, fees, discounts, etc.
👉 Our Take: UpNest introduces you to 2 to 3 agents once you register on their platform. You may face trouble in evaluating these agents concerning their experience and knowledge.
» Is UpNest Legit? Find out if UpNest can be the best option for your house sale.
UpNest offers certain advantages:
- No Fees: UpNest does not charge you an upfront commission. Instead, you are introduced to an agent to discuss the services and commissions.
- User-Friendly Dashboard: It has a user-friendly dashboard which makes it easy to compare agent profiles.
- No Obligation Service: UpNest connects you with multiple agents as soon as you sign up with them. If you are not satisfied, then you can simply walk away.
- Nationwide Coverage: Prevu offers service throughout the US. It connects you with the local agent who has current market insights.
» What is UpNest? Read the comprehensive study for UpNest to learn more details!
UpNest has certain disadvantages:
- Lower Savings: The commission depends on your negotiation with the agent. A higher commission fixed would make you pay more.
- Uncertain Customer Service: Some customers share feedback of agents being extremely helpful and knowledgeable. However, less experienced agents struggle to answer simple questions.
» How Does Upnest Work? Agent-matching at UpNest is pretty straightforward. Check it out!
UpNest has a rating of 4.7 out of 5 stars on Google.
» UpNest Reviews: How Much Will it Save You in 2023?
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
Best-In-Class Agents
Redfin.com
- Listing Fee: 1% of Sale Price
- Available in 80+ U.S. Markets
- 3.4/5
(135+ Reviews)
3.4/5
(135+ Reviews)Redfin is the largest discount real estate company. Its premier agents, with years of experience, help you buy and sell high-end homes.
- Listing Price: Redfin charges a 1% listing fee if you want to sell a house and buy your next one with them. It charges a 1.5% listing fee if you decide to just sell your house with Redfin.
👉Our Take: Redfin is a technology-based platform. You can expect transparency and an accurately managed database. However, you may not get complete attention due to their high customer volume.
» Is Redfin Legit? Check the legitimacy of Redfin’s discount broker services
Redfin offers:
- Competitive Pricing: You pay a listing fee of 1% if you decide to sell and buy with Redfin.
- Updated Technology: Redfin provides a mobile app, 3D walkthrough, relevant filters, etc. This makes the real estate transaction seamless.
- National Presence: Redfin covers 80+ markets in the US.
» Redfin Pros and Cons: Read about the advantages and drawbacks of Redfin services.
The disadvantages of using Redfin are:
- Pricing Inaccuracy: Many sellers have complained about certain factors like, lot area, a gated compound, or a city location not getting considered during valuation.
- Long Time for Listing: As per Redfin’s agreement, it takes almost 15-18 days to verify the seller’s property and list their house.
- Lack of Customer Service: There has been negative feedback about lack of personal attention by Redfin salaried agents.
Redfin has an average rating of 3.4 out of 5 stars on Yelp and average 3.7 out of 5 stars on Google.
» Redfin Reviews: The reality of 1% fees, pros, cons, and alternatives!
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.
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