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5 min read Jan 30, 2024

What Is a 4.5% Real Estate Commission?

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 NameListing FeeMax Savings100% Online5-Star Reviews*
Flat Fee
Ideal Agent2%

Reviews: Best 4.5% (or less) Commission Companies

1. Houzeo

#1 Discount Real Estate Service

Houzeo Logo
  • Listing Fee: $399
  • Available nationwide
  • 5 Stars 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 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


Simple Showing

simpleshowing logo
  • Listing Fee: 1% of Sale Price
  • Restricted coverage
  • 5 Stars 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 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



Prevu logo
  • Listing Fee: 1.5% of Sale Price
  • Restricted coverage
  • 5 Stars 5/5 (528+ Reviews)

Prevu is a reliable discount real estate broker. It offers full service to sellers similar to a traditional broker.

  • Full Service (1.5% Commission): Prevu charges a 1.5% commission on the total home sale value. It includes features like home valuation, professional photographs, closing assistance, etc.

👉 Our Take: Prevu offers services from listing your home to its closing. It charges you a non-negotiated commission of 1.5% of the home sale value. However, for a high-value residence, it could cost you more commission.

» Prevu Reviews: Is it a good idea to choose them? To learn more, read the entire review!

Prevu offers the following advantages:

  • Package Features: It includes various features like home valuation, 3D virtual tours, open houses, professional photographs, listing on MLS, and social ad campaigns.
  • Market Exposure: Prevu syndicates your listings to StreetEasy, Zillow, and more.
  • Closing Costs Calculator: Sellers in NYC can get an estimate of their closing costs by using its closing costs calculator.
  • CoveragePrevu services are available in New York, Massachusetts, Connecticut, California, Pennsylvania, and Washington.

» How Does Prevu WorkLearn about how Prevu functions in your home sale.

Prevu offers the following disadvantages:

  • Inconsistent Agent Quality: Prevu has a limited network of agents. Hence, it lacks personal assistance and service quality.
  • Variable Listing Fee: The listing fee varies as per your location, which could burn a hole in your pocket.
  • Mobile App: It does not provide any mobile application service to its users.

Prevu has a stellar rating of 5 out of 5 on Google.

» Prevu Real Estate Reviews: View their comprehensive evaluation.

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


  • Listing Fee: 1% of Sale Price
  • Available in 80+ U.S. Markets
  • 4.25 stars 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 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


Ideal Agent

Ideal Agent Logo
  • Listing Fee: 2% of Sale Price
  • Nationwide coverage
  • 5 Stars 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 WorkHere 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. 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

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 Price4.5% Realtor Commission6% Realtor CommissionTotal 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

  1. 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.
  2. 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.
  3. 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.
  4. 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.

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