The average Realtor commission is 5.46%. 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 this to just 4.5%.
But there’s a way to save your hard-earned money. A 4.5 percent commission Realtor offers you the same services as a traditional broker but at a discounted rate. You can lower this fee with Houzeo’s Platinum package. You can also manage your showings and offers 100% online.
Rankings: Best 4.5% (or less) Commission Companies
| Company Name | Listing Fee | Max Savings | 100% Online | 5-Star Reviews* |
|---|---|---|---|---|
| Houzeo | $499 Flat Fee | ✅ | ✅ | ✅ |
| SimpleShowing | 1% Commission | ❌ | ❌ | ❌ |
| Prevu | 1.5% Commission | ❌ | ❌ | ✅ |
| Redfin | 1.5% Commission | ❌ | ❌ | ❌ |
| Ideal Agent | 2% Commission | ❌ | ❌ | ❌ |
Reviews: Best 4.5% (or less) Commission Companies
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 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 $399. The Silver package is priced at $399 + 0.5% (minimum $999) , and the Gold package is priced at $429 + 0.5% (minimum $999) at closing. The full-service Platinum package is priced at $499 + 1% (minimum $999) at closing.
2. Simple Showing
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 is headquartered in Atlanta. It is a licensed broker in Georgia, Florida, and Texas. Its 1% listing fee gets you a home valuation, professional photos, and paperwork assistance.
SimpleShowing has a 5-star rating on Zillow. Its team of experienced local agents helps you manage your real estate transaction from listing your house to closing.
3. Prevu
Lower Commission
Listing Fee: 1.5% of Sale PricePrevu is a full-service brokerage that is tech-enabled that offers these features for the sellers:
- 2% Listing Fee: Prevu charges a 2% listing fee, which is lower than the traditional 3% fee. This does not include the buyer’s agent commission.
- Full-Service Agents: Prevu agents provides a range of services, including a CMA Report, professional photography, 3D tours, and negotiation support.
- Digital Platform: The company emphasizes its online platform for quickening and streamlining the home-selling process.
For home buyers, Prevu primarily provides these services:
- Smart Buyer™ Rebate: You get a rebate of up to 1% of your home’s purchase price. However, this amount can differ from transaction to transaction.
- Dedicated Agents: Your dedicated Prevu agent guides throughout the process – from viewing properties to closing deals.
- Technology-Driven Search: Prevu’s platform allows you to easily search for properties and simplifies your communication with your agent.
Based on our research, the benefits of Prevu are:
- Significant Savings for Buyers: Your rebate can add up to thousands of dollars. You can use this money to pay closing costs and other expenses.
- Lower Fees for Sellers: The 2% listing fee is a discounted amount against the traditional 3%, helping you save on commission.
- High Customer Satisfaction: Prevu’s customer reviews often praise the significant savings clients make and the expertise of the agents.
Here are some limitations we found with Prevu:
- Variable Rebate: The rebate is “up to” 1% and not a guaranteed amount. It can be subject to minimum commission requirements.
- Seller Savings are Less Dramatic: While the 2% fee is a discounted percentage, it is not as low as other flat-fee or low-commission models on the market.
- Hand-off Approach: Prevu’s model often requires independence and effort from buyers. This may not be ideal for those who need guidance.
Prevu has a stellar rating of 5 out of 5 on Google.
» Prevu Reviews: Is it a good idea to choose Prevu? Read the comprehensive review to learn more.
Prevu offers a discounted, full-service experience for sellers. The agents provide professional marketing and transaction support for a reduced listing fee. For buyers, the company provides expert agent assistance and a significant "Smart Buyer Rebate" of up to 1% of the purchase price.
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 may limit your ability to select an agent of your choice.
4. Redfin
Refund/Rebate Program
1-1.5% Listing FeeFor home sellers, Redfin.com has three main features:
- 1.5% Listing Fee: Redfin charges a 1.5% discounted listing fee. This fee is further reduced to 1% if you also buy a home with a Redfin agent within a year.
- Professional Assistance: The standard package includes services from listing to closing, that is, from pricing assistance to closing coordination.
- Redfin Concierge: For high-value luxury homes, Redfin offers services like home staging, deep cleaning, and select renovations for additional costs.
Redfin.com offers these features for home buyers:
- Technology-Driven Search: Redfin offers powerful search tools, including map-based searches, saved searches, and instant updates on new listings.
- Redfin Agents: Some Redfin agents may offer a different incentive structure than traditional commission-based agents, making negotiation possible.
- Refund/Rebate Program: In some markets, buyers receive a portion of the buyer’s agent commission back as a refund at closing.
Here are some advantages of choosing Redfin:
- Cost Savings: You pay significantly lower than the traditional 3% listing/seller agent commission. Plus, you could qualify for a rebate.
- Professional Marketing: Professional photography and 3D walkthroughs are a part of Redfin’s standard package. This enhances a home’s online presence.
- Advanced Technology: With 40+ filters to narrow down your search, the Redfin app makes it easy to find the right home.
- Local Agent Assistance: Local agents know their market better and can help you secure a good deal.
Here are some limitations we found with Redfin:
- Minimum Fees are Applicable: The 1.5% commission is a minimum percentage and varies by market.
- No Freedom in Agent Selection: You get an agent assigned automatically without having a choice in the matter.
- Service Variation: Redfin agents often handle a high volume of clients. This may limit personalized attention and reduce the range of services you receive.
- 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 delivers a tech-forward real estate experience. You get services like home pricing guidance, professional photography, and digital marketing. Redfin also serves as a home-buying tool as it lets users schedule showings and connect with local agents. However, you don't get to select your agent yourself.
Redfin was headquartered in Seattle in 2002 by Mr. David Eraker. It covers 80+ markets in the US. They have an operating business license in New York as Redfin Real Estate.
It provides an elaborate listing agreement with a marketing plan for your home. However, some customers have expressed concerns about the agent’s professionalism.
5. 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. The company connects sellers and buyers with partner agents in its network.
These agents pre-negotiate their commission with Ideal Agent. You will have to pay a 2% commission, from which the broker pays 25% to the company as a referral fee.
How to Choose a 4.5% Commission Realtor?
Here are some of the factors to consider while choosing a 4.5% commission Realtor:
- Pricing: Most discount brokerages charge a minimum fee or a 4.5% 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 Does a 4.5% Real Estate Commission Work?
Companies that provide a 4.5% real estate commission offer listing fee reductions.
In a traditional real estate transaction, you will generally pay up to 6% real estate agent commission. This commission is shared in half between your listing agent and the buyer’s agent.
Remember, the discount is on the listing fee. Therefore, instead of 3%, your listing agent will list your home for a pre-negotiated fee of 1.5%. The reduced fee can easily save you thousands in commissions.
How Much Can You Save With a 4.5% Commission Realtor?
Working with a 4.5% commission realtor can save you a significant amount of money compared to the traditional 6% commission rate. Here’s a breakdown of the savings:
| Selling Price | 4.5% Realtor Commission | 6% Realtor Commission | Total Savings |
|---|---|---|---|
| $200,000 | $9,000 | $12,000 | $3,000 |
| $500,000 | $22,500 | $30,000 | $7,500 |
| $750,000 | $33,750 | $45,000 | $11,250 |
Alternatives to Paying a 4.5% Real Estate Commission
- 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 fee is usually set between $179 – $399.
- 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.
- Traditional Realtors: If you need maximum hand-holding, we recommend hiring a full-service in-person Realtor or broker. You’ll get all the professional help you need but won’t save much on real estate agent commission, likely paying a full 5% to 6%.
Final Word
A 4.5 percent real estate commission will help you save thousands. Make sure you speak to agents offering such discounts before choosing one. Compare fees, services, and experience to find someone who fits your requirements and budget.
With Houzeo, you can get your home on the MLS for a small flat fee. You get access to cutting-edge tools like offers dashboard, showings management, and many more to make your selling journey easy.
Frequently Asked Questions
What commission do most Realtors charge?
The average real estate commission is 6% of a home's sell price. This is split between the buyer's agent and the seller's agent.
How do I find low cost discount realtors near me to help sell my home?
You could do a Google search, go with an agent from one of the national discount brokers like Redfin, or find the best real estate discount broker via Houzeo. Houzeo is a technology platform where top local discount and Flat Fee MLS brokers offer their services.
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.
