From Pierre to Sioux Falls, home sellers across South Dakota dread the 6% real estate agent commission. Traditional listing agents charge a commission of 3% of the sale price.
However, you can save thousands by hiring a discount real estate broker when selling your home in South Dakota.
Our list of the best discount real estate agents in South Dakota will assist you in identifying the best one for your next real estate transaction.
⚡Understanding Discount Brokers
- Who is a Discount Broker? A discount broker provides all real estate services like a traditional broker for a low commission of 0.5% to 2%.
- Understanding the Discount: The discount is on the listing fee. You still have to pay the buyer agent commission.
- Can You Negotiate Brokerage Fee? Yes! You can negotiate brokerage fees with your agent. Before you do, make sure you offer a full buyer’s agent fee.
- Alternatives: You can list on the MLS using Flat Fee MLS companies like Houzeo. It is 100% online and automated to cater to various seller needs.
Rankings: Best Discount Real Estate Brokers in South Dakota
|Rank||Discount Real Estate Broker / Company||Listing Fee||Additional Charges||Max Savings||100% Online||Mobile App|
|2.||Flat Fee Realty||Varies||❌||❌||❌||❌|
|3.||Coldwell Banker||2% |
Reviews: 5 Best Discount Real Estate Brokers in South Dakota
BEST TECH-ENABLED BROKERAGE
Redfin is America’s #1 discount real estate brokerage. This low-commission broker specializes in home buying. It’s technology sets it apart from all other platforms.
- Redfin Full-Service Agent – 1.5% Commission: This is a full-service package. This includes pricing assistance, listing paperwork, negotiation support, etc.
- Redfin Concierge – 2.5% Commission: The “Concierge” plan includes everything from the Full-Service package. Additionally, it includes services like professional cleaning, home staging, and more.
- Redfin Premier Agent – 1.5% Commission: This package is exclusively for luxury properties and includes everything that comes with the Full-Service package.
👉 Our Take: Redfin.com is a good nationwide discount real estate brokerage. We recommend its concierge plan because it covers everything needed for a successful real estate transaction.
» Redfin Reviews: The Reality of 1% Fees, Pros, Cons, & Alternatives!
Here are some advantages of choosing Redfin:
- Advanced Technology: Redfin is primarily known for its advanced tech platform, mobile app, and home value estimation.
- Full-Service Agents at Low Commission – 1.5%: Redfin’s full-service package is priced at 1.5%. It saves you thousands compared to the traditional 3% listing commission.
- Buyer Rebate – 0.5%: Clients who sell and buy with Redfin within one year get a rebate of 0.5% in the second transaction. However, this offer is available with the Full Service Plan.
- Detailed Paperwork: Redfin provides the necessary paperwork assistance with a marketing plan.
- Nationwide Coverage: Redfin covers 80+ markets in the US.
In our research, we found some red flags of Redfin, that could make your experience less satisfactory.
- Lack of Personalized Services: Customers have often complained that Redfin agents are not able to give personalized service, as they serve a high volume of clients.
- Poor Customer Reviews: Customers have complained that agents are often unreachable and unprofessional.
- 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.
- 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.
- Agents are Less Incentivized: Unlike traditional agents who work for commission, Redfin agents get a fixed salary. This can demotivate them from offering you services apart from Redfin’s defined services.
Redfin has an average rating of 3.3 out of 5 from 372 reviews on Consumer Affairs.
» Redfin Reviews: The Reality of 1% Fees, Pros, Cons, & Alternatives!
Redfin connects you with real estate agents in your area by utilizing technology and market data. However, your savings are not guaranteed.
You need to buy a house through Redfin within a year to get back 0.5% of the listing fee. If you do not opt for that, you lose out on the refund.
2. Flat Fee Realty
Flat Fee Realty
Flat Fee Realty offers a single Flat Fee MLS package, the price of which varies by state. The listing agent also retains a small percentage of the buyer broker’s commission.
- Common services included in the flat fee package are a listing term of 6 months with 6 photos. Your listings get syndicated to Zillow, Trulia, and Realtor.com. The package also includes free listing upgrades and state disclosures.
Listing Photos Upgrades: If you want to make changes to your listing photos, you must purchase upgrades separately. You can add up to 25 photos for $50.
👉 Our Take: If an affordable plan is your priority, then Flat Fee Realty is a good option. However, they do charge additional fees for optional upgrades like additional photos. They do not offer any services to home buyers.
Flat Fee Realty is a decent option if you are looking for a low-cost real estate brokerage.
- Market Exposure: Your listing gets syndicated to the local MLS and other real estate websites like Zillow, Trulia, and Realtor.com.
- Full Representation: Flat Fee Realty offers a full representation of your property to enable you to sell your home fast.
- Custom Home Search: You can save your home search preferences on their website. Later you can just view homes matching your description as they become available.
In our research, we have found some red flags associated with Flat Fee Realty.
- Low on Tech: Flat Fee Realty is not 100% online. Some of the processes are carried out manually. Your listing might get delayed.
- Non-customizable Packages: Flat Fee Realty’s listing package provides no scope for customization. The package is a one size fits all plan, limiting the options you would like to opt for.
- No Buyer Support: Flat Fee Realty isn’t a buyer-focused platform and they offer no significant benefits for home buyers.
No credible reviews are found.
Flat Fee Realty covers 46 States across the U.S. including South Dakota. They charge a flat fee of $179 in South Dakota that covers listing fees and property photo uploads.
However, the listing agent retains 0.25 percent of the buyer broker’s commission. Also, there are no variations in the package or add-ons available.
3. Coldwell Banker Realty
LOCAL YET NATIONAL
Coldwell Banker gives the sellers a variety of free tools, like a home value estimator, local market data, and fast cash offer alternatives.
- 2% Commission: The services in this package include creating a marketing and sales strategy, conducting open houses, and handling the home sale process.
👉 Our Take: Coldwell Banker is a good option for sellers who want quality service from a renowned discount real estate broker. However, we suggest reading the customer reviews before proceeding.
Coldwell Banker provides the following advantages:
For Home Sellers:
- Marketing: They can create an effective marketing strategy through accurate market knowledge, advanced pricing tools, and comprehensive housing data.
- Local and Experienced Agents: Agents with local expertise help you learn more about the current state of the housing market. You can then price the house right to attract buyer interest.
For Home Buyers:
- Home Financing: Coldwell Banker can assist with down payments, mortgage prequalification, loan approval, and other aspects of home financing.
In our research, we have found some red flags associated with Coldwell Banker.
- Poor Customer Feedback: Customers have faced issues regarding commission percentage, disclosures, business practices, and misinformation.
- Unreliable Agents: Some customers have complained of neglect and lack of transparency in interactions with the agents. A detailed background check of agents is not done before assigning them to clients.
It has a rating of 3 out of 5 from 403 reviews on Consumer Affairs.
Coldwell Banker has a large network of brokers and sales associates spread across 49 countries. It has a mobile app that makes the online listing process easy.
However, it has average customer feedback.
TRADITIONAL COMMISSION FEES
- Listing fee: 2.5% of the sale price (or as decided by agent)
- Available in all major cities
- 4.7/5 (56 reviews)
UpNest is an innovative real estate marketplace that connects home sellers and buyers with agents in their area.
- Pricing: There’s no direct cost to using UpNest, but the savings are marginal. UpNest agents decide their commission fees. The discount rate varies.
👉 Out Take: We do not recommend Upnest for home sellers or buyers. UpNest’s network is reliable and quick, but savings aren’t guaranteed. You might end up paying more than you had expected.
» Is UpNest Legit? Find out if UpNest is legit!
Here are some advantages of using Upnest. No Obligation Service
- No Obligation Service: Within 24 hours timeline after signing up, UpNest will send you multiple agents you can choose from. If nothing fits, you can simply walk away.
- High-quality Agent Network: UpNest partners with top agents from leading national brokerage firms across the U.S. All agent matches remain unbiased, based on your criteria and preferences.
- User-friendly Dashboard: UpNest’s customer dashboard is intuitive and makes it easy to compare agent matches. It also features options to contact the matched agents or your UpNest Advisor with a single click.
» What is UpNest? Read the comprehensive review to know more!
In our research, we found some red flags associated with UpNest.
- Marginal Savings: The commission rates aren’t pre-defined. The negotiation ultimately relies on you. Past sellers have claimed that the lowest listing fee is 2% which is quite high.
- Inconsistent Customer Service: Customers have revealed that some UpNest representatives are extremely helpful and knowledgeable. However, rest of them 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 from 56 customer reviews on BBB.
» UpNest Reviews: How Much Will it Save You in 2023?
UpNest connects you with agents in your area by utilizing technology and market data. They partner with top agents from leading national brokerage firms across the U.S. However, your savings are not guaranteed.
Your ability to negotiate would be the key factor in the deal. In other words, you may end up paying more commission, or discount rates won’t go low as you expected.
GOOD AGENT COVERAGE
HomeLight has a network of thousands of successful real estate agents and brokers. It is an agent-matching tech-platform.
- Standard Commission: HomeLight is a free agent-matching platform. The agent you get through this platform will charge the standard commission of 2% to 3% for listing.
👉 Our Take: HomeLight provides decent agent-matching services. However, the standard listing commission means zero savings for you.
» HomeLight Reviews: The Truth You Need To Know
HomeLight offers a number of advantages to both sellers and buyers:
For Home Sellers:
- Free Agent Matching: The agent matching service from HomeLight is free for home sellers. HomeLight furnishes details of the best real estate agents in your neighborhood. Depending on the agent, the traditional 5% to 6% commission is charged.
- Estimators and Calculators: HomeLight offers Home Value Estimator, Best Time To Sell Calculator, Agent Commissions Calculator, and Net Proceeds Calculator to home sellers.
- HomeLight Simple Sale: HomeLight has a network of pre-approved buyers. If you want to sell your house fast, this option allows you to sell it to a cash buyer within 7 days.
For Home Buyers:
- Home Search Feature: Buyers can search for homes by city, zip code, or address.
- Estimators: HomeLight offers estimators like Home Affordability Calculator, Down Payment Calculator, and Closing Costs Calculator for home buyers.
In our research, we have found some red flags associated with HomeLight.
- Inconsistent Agent Quality: The agents they assign may not work at your convenience. Even the listing speed will be based on the agent selected.
- Off-market Restriction: Registering on HomeLight will get you offers from agents instantly. Although the process is fast, only homes that are off-market are allowed.
HomeLight has an average rating of 4.6 out of 5 from 237 reviews on Sitejabber.
HomeLight offers a range of services for buyers, sellers, and agents all under one roof. It claims to be a straightforward alternative to a DIY search for a real estate agent.
However, you may end up spending a lot more and the quality of agents and services would still be questionable.
What Are Discount Brokers and Companies?
Discount real estate brokers are companies or agents who sell your home for less than the standard 2.5% to 3% commission. Sellers receive basic real estate services at a pre-negotiated fee of 0.5% to 2% or even a flat fee.
The reduced fee can easily save sellers thousands in commissions.
You may be now wondering if their services are comparable to those of a traditional Realtor at this point. Discount real estate brokers typically offer the same services as full-service brokers. The key difference is in pricing.
🤔 Do you offer buyer agent commission to discount brokerages?
YES! Most real estate discount brokers and brokerages will recommend you pay a full buyer agent fee. It is typically between 2% and 3% in most states.
It is vital to pay a competitive commission to the buyer’s agent. This will ensure you sell your home quickly while still receiving the best price possible.
Types of Discount Brokers
Find a discount real estate broker that fits your budget and saves you the most money! The four major types of real estate discount brokerages and companies are as follows:
1. Flat Fee MLS Companies: Flat Fee MLS companies get you on the MLS for a small flat fee saving you thousands in commissions. Best Flat Fee MLS listing companies like Houzeo can get you on the MLS within 48 hours, or even faster!
2. Flat Rate Full-Service Companies: These companies charge a fixed fee instead of the regular 3% commission. This amount can be anywhere between $3,000 and $5,000. A flat rate Realtor is perfect for homes priced on the higher end.
3. Low Commission Estate Agents: Low commission discount brokers offer full-service packages. These are usually priced at 1% or 2%. They cover everything from listing, negotiations, and pricing.
4. Virtual Full Service: A virtual full-service discount broker handles everything online. Companies like Houzeo, also provide full-service options that are 100% online. All services including price negotiation and marketing support are at no additional cost.
Pros and Cons of a Discount Realtor
The primary benefit of working with a discount broker is that they have lower overhead costs. However, a discount broker may not have as much time to communicate. They juggle many clients and may not be available for your queries.
- Reduced Fees: You’ll pay less for listing costs. While standard brokers typically charge at least 3%, discount brokers may charge as little as 0.5% to 1%.
- Full Access to Basic Real Estate Services: You receive the same basic services as you would with a traditional agent. They provide assistance with pricing, marketing, and negotiations.
- Streamlined Process: A low-cost Realtor facilitates the selling process. They are motivated to work efficiently and eliminate all unnecessary steps from the sales process.
- Not Enough Savings: Some discount brokerages may charge hidden fees or sell their services a la carte. This might add to your expenses.
- Not for First-Time Sellers: Most discount real estate brokerages are digital, so you almost never have to talk to anyone in-person. A first-time seller or buyer who needs some hand-holding may not be able to benefit much.
- Lack of Personal Attention: Discount Realtors handle multiple clients at once to make up for the reduced commission rate. They may not be able to provide personalized services.
- High Cancellation Fee: A discount realty company can charge a minimum withdrawal fee within a specified period of time. Remember to carefully review the terms and conditions of the contract before signing.
Discount Real Estate Brokers to Avoid
Some agent-matching websites advertise themselves as “free”. But in reality, they keep a portion of the commission received by the discount real estate brokers. Because you pay the commission, this amount comes out of your pocket.
For example, List With Clever promotes itself as an informational real estate website that matches sellers with discount realtors. Even though Clever claims to be “free”, 25% to 40% of your commission will be directed to Clever as a “Referral Fee”.
» Clever Real Estate: Check out what you lose when you sell or buy with Clever!
💸 Save Thousands in REALTOR Commission
Sell your house with Houzeo.com for a small flat fee – as low as $349!
START YOUR MLS LISTING NOW
How to Choose a Discount Realtor or Company?
It is essential to select the right real estate agent for your home-selling journey. The following are a couple of pointers to assist you with picking the ideal discount broker or company.
1. Savings: Discount real estate brokers in South Dakota have a variety of pricing structures. So, choose one that maximizes savings while still providing all of the services you require.
2. Technology: Choose companies that use cutting-edge technology, offer online paperwork, and have a mobile app.
3. Customer Reviews: Check for online customer reviews. This helps you to get an idea of the kind of services you are going to receive.
How Much Can I Save With a Discount Realtor?
As a seller, you can save anywhere between $1,632 and $ 6,680.
Typically, home sellers pay 6% of total realtor commissions. The total commission is divided between the listing agent (3%) and the buyer’s agent (3%). Discount real estate brokers pre-negotiate a reduced listing agent commission of 1% to 2%.
Therefore, you save a commission of 4% to 5% on your home sale.
As a home buyer, you get a buyer’s rebate – a type of cashback received after the sale. A typical buyer rebate is 1% to 2% of the home’s purchase price.
For example, Homie offers a buyer rebate of 1% to 1.5%. A $400,000 house will save you a whopping $6,000!
However, in order to qualify for this buyer rebate, buyers must fulfill specific requirements. The most important is the minimum price range.
🤔 What is a home buyer rebate?
A Realtor rebate is a type of cashback you receive as a buyer. Some brokerages and agents offer these rebates as an incentive to attract more buyers. Buyer rebates are allowed in 40 states.
Who Should Use a Discount Broker?
Discount Brokers are ideal for sellers and buyers who want to focus on savings.
- Sellers on a Tight Budget: Homeowners who wish to save money might list with a low-fee Realtor. This can help them save big.
- Real Estate Investors: Real estate investors who frequently trade can benefit from low-commission discount brokers.
- House Flippers: Home flipping is a strategy where an investor purchases a property to renovate it and sell it for a profit. Home flippers can save thousands on agent commissions by selling via discount brokers.
Alternatives to Discount Real Estate Brokers in South Dakota
Here are some options if you do not want to opt for a discount Realtor in South Dakota.
- Flat Fee MLS Companies: Flat Fee MLS South Dakota companies list your property on your local MLS for a flat fee of a few hundred dollars. You can save on commissions and also take advantage of their technology for a faster sale.
- List With a Full-Service Realtor: If you need hand-holding, we recommend you hire a full-service in-person South Dakota Realtor. You’ll get all the professional help you need, but you will end up paying a full 5% to 6% commission.
- Sell to an iBuyer: Many iBuyers, like Opendoor and Offerpad, purchase hundreds of homes in Pierre and other South Dakota markets. iBuyers can be a great option if you’re wondering how to sell your house fast in South Dakota.
- Sell to Cash Home Buyers: Individual cash home buyers and companies that buy houses for cash in South Dakota 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.
- Sell For Sale By Owner: For Sale By Owner websites will help you list and sell a house by owner in South Dakota and save thousands in listing agent commission. Many FSBO websites will also get you listed on the MLS and help you with FSBO paperwork.
» Best FSBO Sites in South Dakota: We’ve researched and reviewed all the best For Sale By Owner sites in South Dakota. See our rankings!
Are Discount Brokers Worth It?
YES! There are various advantages to using a discount real estate broker. Using a cheap brokerage can save you a lot of money. The commission savings can be significant.
There are several discounted real estate brokers on the market today, each with its own set of advantages. Examine factors such as listing fees, listing time, services provided, customer service, and coverage before you choose one.
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.
» List My House on MLS in South Dakota: The fastest way to get on the MLS!
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.
What is Houzeo?
An overview of what the platform is all about
» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.
Frequently Asked Questions
How much commission does a Realtor charge in South Dakota?
A Realtor in South Dakota generally charges around 6%.
Are real estate commissions negotiable in South Dakota?
Yes! Real estate commissions in South Dakota are negotiable.