America’s 10 Best Discount Real Estate Brokers and Companies (2023)

Traditional listing agents charge you 3% of the sale price as a real estate commission. However, discount real estate brokers offer the same services at a discounted rate.

Our rankings of the best discount realtors will help you find the right one for the sale of your home.

Rankings: Best Discount Real Estate Brokers & Companies

Reviews: 10 Best Discount Real Estate Brokers & Companies

1. Houzeo.com

2. Redfin

3. ListingSpark

4. Ideal Agent

5. HomeLight

6. UpNest

7. SimpleShowing

8. Redefy

9. Prevu

10. Homie

Here’s a quick recap of the best discount real estate brokers in America:

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. Since you pay the commission, this amount technically goes from 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 the commission you pay will be directed to Clever as a “Referral Fee”.

» Clever Real Estate: Read our full review of Clever Real Estate

Selling With Discount Real Estate Brokers & Companies

As a seller, there are a few important points that you need to consider when you choose a discount broker.

What are Discount Real Estate Brokers & Companies?

Discount realtors are real estate agents that provide specific real estate services at a discount rate.

As the name suggests, they provide a discount on the realtor commission rate instead of charging the seller a standard 3% real estate agent commission. They will work for less (such as 1%-2% commission or a pre-defined flat fee) and provide limited services. The reduced fee can easily save sellers thousands in commissions.

Discount real estate brokers typically offer the same services as full-service brokers. The key difference is in pricing.

💡 SAVE: Some of the best discount real estate brokers or companies include a range of Flat-Fee MLS providers. Though real estate commissions are declining, Flat-Fee MLS providers are still the top choice for sellers for their transparent flat fees.

Do You Offer Buyer Agent Commission to Discount Brokerages?

Yes! Most real estate discount broker companies and brokerages will recommend you pay a full buyer agent fee. It is typically between 2% to 3% in most states. 87% used a real estate agent or broker and paid recommended 2.5% to 3% commission. A discount broker will only provide savings for the listing fee.

It is critical to provide the buyer’s agent with a competitive commission to sell your house quickly while still getting the best price possible.

Important Features of Discount Realtors/Companies

💰 Listing Commission	The listing fee is to be paid by the seller. The lesser, the better the chances to attract sellers to the platform.
💲 Savings	Based on the commission fee or flat fee paid, what are the savings when compared with a traditional realtor’s commission.
📲 Technology	Technology aids in the home selling process by making most services automated and giving the sellers the required comfort.
☎️ Customer Service	Low-fee Realtors/companies should not bargain on top-notch customer service.
📍Coverage	A good discount real estate broker/company should cover as many states as possible.
📱 Mobile App	A good discount real estate broker/company should have a good mobile app to access the platform on the go.

How does a Discount Real Estate Broker Earn?

In comparison to the conventional full commission of 5% – 6%, a discount real estate agent charges a lot less on the listing end. They accomplish this by keeping their services to a bare minimum. A discount broker is ideal for sellers who are familiar with the process.

Some discount brokers may provide a variety of services that will be included in the price, ranging from marketing to negotiation. Other services will be chargeable. Some brokers work with companies and receive multiple sellers at a time. This is how they earn.

You will be charged commissions and fees at closing for any additional actions that are not specified upfront. If you want to play it safe, go with a full-service agency.

If all you need is a discount company to handle the paperwork and offer additional services, choose our top candidate – Houzeo – for incredible savings and cutting-edge technology!

How to Choose a Discount Real Estate Broker, Brokerage, or Company?

Before you choose a discount real estate broker, find one that fits your budget and saves you the most! Here are the four main categories of real estate discount brokerages and companies. Flat fee, flat rate, low commission, and virtually full service.

Here are the highlights of the 4 categories of discount real estate brokers.

1. Flat Fee MLS 

A flat fee MLS listing company or service is a registered agent or discounted broker that lists your home on the MLS for an upfront flat fee. The seller gets into an ala-carte service agreement with the broker who accepts the flat fee.

Say you are in the market to sell a $500,000 property, a traditional agent will cost you anywhere between 2%-3%. That is $15,000!

With a flat fee model, you will pay an average of $349 which includes listing and marketing. Choosing to add other services like pricing and buyer negotiations will still help in saving money.

» Houzeo.com is our top Flat Fee MLS pick.

Discount Real Estate Companies That Offer Flat Fee MLS Listing Near Me

Before opting for a discount real estate brokerage, you would want to know its coverage.

All the low-commission real estate agent providers do not have the same coverage. Some have nationwide coverage, while some are restricted to a few states.

We’ve compiled a list of the best flat fee MLS Listing Services in each state. Click on your state/city to check them out!

💸 SAVE: With Flat fee MLS, you will save thousands in listing fee. You also get an option of selecting the service you want and customise the packages as per your needs.

2. Flat Rate

A flat rate is perfect for homes priced on the higher end.

Let’s say your house is valued at $540,000 and you pick a flat rate pricing model of a $3,500 listing fee. If you go the traditional agent route, your listing fee alone will be a minimum of $13,500. 

Bear in mind that apart from the buyer agent commission, you will still be responsible for concessions, escrow fees, and warranties. 

» Houwzer is our top Flat Rate pick.

✍️ Note: Low-value homes aren’t well served by flat rates. They also have a minimum coverage of agents. Choose this option only if you require a wide range of services at a fixed price.

3. Low Commission Estate Agents

Low commission realtors or agents are discount brokers who work on lower commission rates than the traditional 3%.

Most low-commission real estate companies have a predetermined fee with agents. These agents are independent or hired in-house and usually work with multiple sellers at a time.

Low-commission discount brokers offer full-service packages. These are usually priced at 1% or 2%. They cover everything from listing, negotiations, and pricing.

With the rise of the flat fee model and commission-based models, real estate commissions are declining. This makes these low-commission discount brokers more relevant to sellers nationwide.

4. Virtual Full Service 

A virtual full-service discount broker does everything – listing to closing – online.

Virtual full service offers several advantages. This includes lesser fees, discounted commissions, better management, and marketing support.

Many MLS listing companies like Houzeo, also provide full-service options that are 100% online.

» Houzeo.com and Beycome is our top virtual full-service pick.

🎯 Remember: A virtual full service company will not provide any in-person agent support, meaning, you will have to take over most of the groundwork. It may not be the best option for a first time seller.

How Do I Locate Discount Realtors Near Me?

Click and find out about discount real estate companies and brokers near you.

Buyer Rebate

A realtor rebate is a refund the buyer gets at closing from their Realtor. It is a tactic to get more business.

A typical buyer rebate is 1%-2% of the home’s purchase price. In most cases, it ranges between a third and two-thirds of their commission. Buyer rebates are allowed in 40 states.

Most of the time, discount realtor fees don’t change anything for the seller. Because they still have to offer a competitive buyer agent commission.

Four More Ways To Get Discounted Realtor Fees

So, can you negotiate a realtor’s commission? Yes, a typical Realtor’s commissions are negotiable! The average real estate commissions are declining of late to just under 5 percent of a home’s sale price, according to Real Trends.

Unless it is a flat-rate discount company, you can definitely negotiate for minimum changes. The amount you lower will wholly depend on factors such as your property area, condition, the brokerage, among others.

Hence, low-cost real estate companies like Houzeo save you thousands of dollars and work at lower rates. Read ahead to find out how to lower your commission:

Average Area Commission

If you are ready to sell, know your leverage before negotiating. For example, Florida’s average real estate commission is 5.40% which is lower than the national average. Lowering your overall commission might not be possible. Once you know your reference point, negotiations can get a lot more reasonable.

Buying and Selling With the same Discount Real Estate Brand

Using the same discount brokerage or brand to buy and sell has its own advantages. It makes you more likely to repeat customers, giving you more chances to get refunds and cheaper commissions. For example, Landfall Properties, an MLS listing company, offers a rebate that can only be applied to your next purchase with the same company.

Pick the Right Type of Discount Broker

For example, picking a flat-rate discount broker may not be the best option if your house is priced on the lower end. You will wind up losing more, instead, for maximum savings, you can pick a flat-fee MLS company. 

Buyer Agent Commission

87% of the buyers work with an agent. For maximum savings, offer a competitive buyer agent commission. Once you cut out the risk factor of selling the house, your listing agent will be more comfortable with lowering their fee. 

How Much Can a Buyer Save With a Discount Real Estate Broker?

A buyer’s rebate is a form of cashback a buyer receives after the sale.

Flat Fee MLS websites like Go to FSBO and low commission companies like Homie offer a small percentage of the purchase price.

Depending on the price of the house, they may offer a significant amount of savings for the buyer. For example, Homie offers a commission home sale rebate of 1%-1.5% which on a house worth $400,000 in savings worth a whopping $6,000!

There are obviously some parameters these discount brokers and companies have for the buyer to qualify such as minimum purchase prices. And other external factors like lender approval and buyer rebates are not being allowed in the states of Oregon, Tennessee, Kansas, Louisiana, Alaska, Mississippi, Missouri, and Oklahoma.

» Homie Real Estate: Reviews, Alternatives, and Everything You Need to Know

Factors to Consider While Choosing Discount Real Estate Brokers and Companies

It may appear like discount real estate brokers and agents are too good to be true. The secret, though, is to find the right one. When looking for a safe discount broker, the following are the essential factors to avoid:

Minimum Fees 

This one is only for discount companies that don’t set a flat rate but rather a minimum fee, which causes a big drop in housing prices at the bottom. Think about the case below.

Homie Real Estate is a viable option for selling a home without a realtor. Homie charges a flat price of $3500. If your property is worth $100,000, a full-service traditional agent will cost you $2500. With a $1000 loss on your end, discount brokers are irrelevant.

High Upfront Commission

It is not a discount broker if they charge typical realtor fees. Avoid discount real estate agents that charge high upfront non-refundable listing fees. Always check your commission rate with an experienced local realtor before you pick your discount real estate brokerage firms.

Marketing Gimmicks

Avoid companies that offer free listings or other marketing tactics such as rebates. There are usually hidden fees that aren’t stated upfront, such as closing costs. Fizber, for example, promotes its free listing heavily, although it does not contain an MLS listing. This destroys the objective of selling in the first place.

Limited Services

Discount brokers often have a set list of services they offer for a pre-defined price. In case you pick a limited-service discount broker, ensure that they do not overcharge for a la carte services.

Even though these “limited-service” brands advertise cheap rates and say they offer rates similar to our full-service picks, they come with risky service trade-offs. This limits how much money you can save in the long run.

Real Estate Disruptors

Opendoor bills itself as one of the “disruptors” in the real estate industry, using technology to redefine the industry. In reality, they’re just limited-service brokerages with more fashionable branding and bigger marketing budgets.

» Opendoor Reviews: NOT the Best Way to Sell Your House in 2022

Disadvantages of Using a Real Estate Broker with Lowest Fees

Questions to Ask Your Prospective Agent

Agent’s Track Record: Many discount brokerages and referral services let you interview prospective agents. Because they may have a high volume of clients, look beyond the number of homes they’ve sold. Ask if they’ve had clients with similar homes or special circumstances.

Limited Service:  Agents should disclose any tradeoffs for lower commissions. You may host the open house or negotiate the sale like a traditional agent. If any services are a la carte or if you’re referred to an outside vendor, you may incur additional costs.

Market Knowledge: Prospective top real estate agents can explain the selling process and local market conditions. You should get a sense of comparable local home sales and what to expect from potential buyers, such as what they want and how fast other homes sell.

Discount Real Estate Broker Alternatives

Traditional Agent 

A traditional agent assists you in buying, selling, renting, and all other aspects of real estate. A listing agent and a buyer agent are two types of traditional agents. Agents operate for brokerages and companies or under the supervision of a qualified broker or a great agent.

The average overall typical realtor fee/commission for selling a home is 5%. This is deducted from the seller’s proceeds and shared between the listing and buyer agents. The commission rate changes on a regular basis and is determined by the location of your property.

The listing agent assists the seller in the sale and marketing of their home. The buyer’s agent, on the other hand, brings in clients who buy the house. They each get 2.5 percent after closing for a total of 5%.

For Sale By Owner

As the term indicates, for sale by owner property basically means selling a house without a realtor or a real estate broker. It’s the most cost-effective approach to avoid commissions and selling a house quickly. FSBO is ideal for sellers with some experience with the selling process and marketing. The best way to sell your house on your own is to list on the Multiple Listing Service and on various For Sale By Owner websites. Their large database allows them to market your home to agents all throughout the country, allowing them to sell your home faster and with the most exposure possible.

Real estate bargain brokers fall midway between a for-sale-by-owner and a full-service agency. With MLS listing packages starting at $349 and cutting-edge technology that allows you to manage your property, review offers, counter, and manage showings online and via their mobile app, Houzeo delivers the best of both worlds.

» For Sale By Owner Contract: A detailed guide for drawing up an FSBO Contract

iBuyers

An instant buyer, often known as an iBuyer, is a corporation that buys houses for sale with an all cash offer. Unlike the usual way, the major goal is to sell it swiftly and efficiently. They employ cutting-edge technology and provide you with complete closing flexibility.

They make reasonable offers, although with a large service cost. Most iBuyers charge additional closing fees, which can easily push your commissions up to 12%! For example, Redfin Now charges up to 13% in service fees, 3% in maintenance fees, and 1% in closing costs, which can potentially total up to a staggering 17 percent!

iBuyers have their own set of rules, with costs that aren’t necessarily in line with market norms. It is always better to pick a discount real estate broker instead and save thousands of dollars!

» iBuyer Reviews: Check out the best way to sell your home for cash in 2022!

Sell to Cash Companies like “We Buy Houses”

Cash companies buy your property below market value, flip it, and sell it at a profit. If you’re planning for a quick sale, then cash companies are the way to go. You’ll be able to sell your property in under a month.

These companies usually buy properties in poor condition or those that are about to go into foreclosure. However, for selling your house as is to these companies, you will be charged a service fee.  

We Buy Houses For Cash Companies: America’s 13 Best Companies That Buy Houses for Cash in 2022

Conclusion: Best Discount Real Estate Brokers & Agents

There are a number of discounted real estate brokers real estate discount brokers present in the market today that provide unique features. For a seller, it is recommended to check on pointers like listing fees, listing time, services offered, customer service, coverage, and technology to select a particular broker.

While there is close competition between the umpteen discount realty companies, Houzeo comes out to be a clear winner. With Houzeo, you get almost everything you require to sell your property. Not only sellers, but Houzeo also helps buyers with a lot of add-on features.

Moreover, Houzeo is 100% online and automated to cater to various seller needs. Additionally, the platform is one of the leading Flat-Fee MLS providers that has changed the way FSBO works in the real estate industry.

Eager to Know How Houzeo Works?

Check out the following video to understand: What is Houzeo? How does it work? And, why it is the best FSBO & Flat Fee MLS platform out there?

» More: Read these exclusive Houzeo reviews to decipher why the platform is the best in the business.

FAQs on Selling a House with Cheap Discount Realtors

Also Read

• Real Estate Companies: Check out the 10 Best Real Estate Companies in 2022
• Closing Costs: What are closing costs? See what are the typical closing costs and find out whether closing costs are negotiable.
  • Closing Costs for Sellers: What are the closing costs as a seller? Check whether seller closing costs are tax deductible.
  • Closing Costs for Buyers: What are the closing costs as a buyer? Check whether buyer closing costs are tax deductible.
• Sellers Disclosure: Check out the disclosure requirements for each state

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