6 Options To Save on Realtor Commissions

Discount Real Estate Brokers: 6 Options To Save On Commissions

It’s reasonable why most people tend to work with real estate professionals than trying to sell their property on their own. There’s too much pressure, too much work, and too much risk involved. No doubt that a huge percent of all home buyers and sellers would prefer to hire a licensed real estate agent to get things done.

The typical real estate commission is 6 percent, which is then divided by the buyer’s agents and the seller’s agent. So, basically, they get 3 percent each of your home’s proceeds. However, there’s a reasonable resort that means you can save without sacrificing too much money and negotiate for a discounted fee.

Paying off high commission fees can be a real bummer. Imagine someone taking a big slice of your home’s sale price and realizing how little you can pocket. But, if you want to skip handing cash of standard 6% real estate commission, a discount real estate broker is an alternative you could actually choose. Well, a discount broker can lend you a hand without asking a full real estate commission, all the while enjoying nearly the same quality and service of a full-rated agent. 

Did you know Houzeo’s Gold Plan provides relevant Federal and State Seller Disclosures?

What is a Discount Real Estate Broker?

A discount real estate broker is a real estate agent who offers limited or often full service for a flat fee. Some brokers offer to put your property into the multiple listing services (MLS) for a reduced rate of 2% or 1% commission. This means you have to do the rest of showing your home, marketing it online, answering phones, and more. But if you do want more services done, you have to spend more than what you’re paying. 

How Does a Discount Real Estate Broker Operate?

The majority of people don’t know that all real estate commissions are actually negotiable. However, several numbers of real estate brokerages take advantage of this profitable fact and even build different discount real estate models that promise to offer low commission costs to sellers and also rebate commission to home buyers.

Here are your options to save on commissions with discount real estate brokers:

  1. Low Flat Rate Commission
  2. Low Percentage Commission
  3. Hybrid Real Estate Brokers
  4. Buyer Commission Rebates
  5. No Commission (Flat Fee MLS)
  6. 2 for 1/Reduced Fees in Exchange for Another Transaction

To help you decide which option you would like to utilize, let’s discuss each one of them in more detail below.

Low Flat Rate Commission

A flat-fee real estate agent will help you list and sell your home for a predetermined, fixed-rate instead of taking a hefty percentage of the final sale price. The flat fee often ranges between $3,000-$6,000 and the level of service that is offered depends on the agent or broker being hired and can vary greatly between providers.

If you’re hiring a full-service flat fee agent, you get the exact same level of service and support as any of their full-commission clients such as pricing guidance, professional photos, marketing on the MLS and hundreds of other listing sites, showings, negotiation support, and everything else you need to close on your home – only you pay a fraction of their typical fee.

Bear in mind that you will still be responsible for paying the buyer’s agent fees which is typically the same 2.5%-3%.

Low Percentage Commission

A low commission real estate agent will help sell your home via MLS listing for a predetermined reduced rate. That means you save up to half of the 6% commission most agents usually ask in real estate transaction. .

These low commission brokers are often able to offer the same or similar services as the traditional sellers’ agents. Although they work for low commissions, you can still expect to receive comprehensive, end-to-end real estate services and support such as conducting a comparative market analysis to make sure your house is priced right, negotiating the sale, carrying insurance to cover any mistakes made and listing the house on the MLS and other real estate sites.

Hybrid Real Estate Brokers

instead of the standard broker commission, hybrid real estate brokers ask for a flat fee providing a set of choices or a la carte services for their clients. Most of them offer a discounted listing commission that ranges from 1% to 3%‑‑or for a flat listing fee.

Basically, a hybrid real estate broker model is a combination between a traditional real estate brokerage and a For Sale by Owner (FSBO) method of home selling. In other cases, hybrid real estate brokers operate on a flat fee rather than a percentage fee basis, which means it’s up to the client’s preference on how much they’re willing to spend in exchange for a custom-made service.

Buyer Commission Rebates

Also called a realtor rebate, buyer rebate, or rebate commission, it’s a fee—non-taxable money—agents can rebate from their chunk of commission to the buyer. It’s an attractive deal that opts to motivate buyers to hire them over the list of qualified agents. Since buyers can’t basically be paid a commission, a company chooses to give away part of its profit in order for clients to swarm into their service. However, the possible downside for this all boils down to the part of the agent wherein he/she only gets less chunk of money at the closing deal.

Yet on a larger scale, the agent obtains a positive reputation for the business scene and can potentially get more clients in the long run. So, it’s still a win-win situation for both parties after all.

6 Options To Save on Realtor Commissions

Flat Fee MLS with No Commission

Flat fee MLS service typically provides sellers to list your home on the MLS (Multiple Listing Service). It’s a shared database system with other agents that list for sale properties. And also offer other available licensed agents who are willing to transact with the seller’s agent.

Also called an “entry only” listing, this designation signals to buyers agents that the agent entering the listing into the MLS is not performing any other tasks for the seller, so they know not to contact that agent to arrange a showing, for example.

If you avail of this service, you’ll get an “entry only” listing, which indicates that the agent doesn’t need to help any other duties except listing your property into the local MLS. It’s also important to note that when your property is listed, you’ll also be marketed to different real estate websites like Realtor.com, Zillow, Redfin, and many more. 

Houzeo is America’s #1 For Sale By Owner & Flat Fee MLS Service

3 min Video: How to List Your Home on the MLS by Owner

The 2-for-1 Model/ Reduced Fees in Exchange for Another Transaction

The least common type of discount real estate broker, the 2 for 1 model involves the real estate agent offering to sell your house for free, with the stipulation that you buy a house with them and they collect a commission then.

A seller that is both selling and buying a home can save a lot of money with this model and will most likely avoid paying any commission at all.

Where Can You Find Discount Real Estate Brokers?

You can find discount real estate brokers all over the internet. Below are some discount broker websites where you can look up and scrutinize the services they offer.

Are discount brokers better than traditional agents?

Actually, it all depends on the volume of service you need or the kind of agent you choose to assist. Most flat-fee brokerages offer a limited scope of services with a discounted fee, while traditional real estate agent works with different range of services (from marketing, pricing, home staging to closing) with a standard fee of 6% commission.

If you’re eager to have a full marketing control over your property, then a discount broker can help you fulfill your goal. But if you don’t want to risk or get involved in the most home selling process, a traditional real estate agent is the most preferable choice.

So, should you go with discount real estate brokers over traditional real estate agents?

To help you make up your mind and consider what’s best for you, here are the pros and cons if you dive down to a traditional route or with a discount broker option.


  1. You can save thousands from commissions.
  2. Choose from a variety of services just like hiring a traditional agent.
  3. Your house gets listed on the MLS – the golden tool of real estate agents.


  1. Limited service provided depending on which discount brokerage you work with.
  2. Less personalized attention to compensate for the discounted rate.
  3. Less experienced agents handling your listing.