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
|Rank||Discount Real Estate Broker / Company||Listing Fee||Max Savings||100% Online||5-Star Reviews*||Nationwide Coverage||Mobile App|
|4.||Ideal Agent||2% |
Reviews: 10 Best Discount Real Estate Brokers & Companies
🔥 BEST OVERALL
Houzeo provides the best combination of max savings, max exposure, cutting-edge tech, and 5-star customer service.
- Affordable Flat Fee: Save thousands in real estate commissions with Houzeo’s flat fee MLS packages.
- Cutting Edge Technology: Houzeo’s technology is seller-centric, which simplifies the complex process of listing a house. Houzeo is 100% online, which makes listing a home easy and quick.
- Virtual Full Service: Sellers can avail of the services of a traditional real estate agent if they need help navigating through the selling process.
- Hi-tech Tools: Houzeo’s Closing Cost Calculator is also available to buyers. Additionally, buyers can schedule visits through the Houzeo mobile app.
- Buyer’s Rebate: Houzeo.com also offers buyer’s rebates. This rebate can then be used towards closing costs.
Mobile App: Yes
👉 Our Take: Houzeo.com is our top pick because it delivers an unbeatable combination of savings, tech features, and service of any low-commission real estate company we’ve reviewed.
» Houzeo Reviews: Check out why Houzeo.com is your best bet for maximizing your home equity.
- Near Nationwide Coverage
- No Listing Agent Commission
- 100% online
- Maximum Exposure
- Fast Listing Service
- 5-Star Customer Service to minimize complaints
- No Hidden Fees charged
» Is Houzeo Legit: Learn more about Houzeo.com’s locations and services
Houzeo has an average rating of 4.9 out of 5 rating on Google & Trustpilot.
Houzeo is available nationwide.
Introducing the Houzeo Mobile App!
- View your listing
- Manage your showings online
- Review and compare offers
- Counter an offer
- NEW! Buyers can now search your property and save it in “Favorites”
BEST TECH-ENABLED BROKERAGE
Redfin is America’s #1 discount real estate brokerage. This low-commission broker specializes in home buying. Redfin.com’s technology is what 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 everything.
- 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 option if you are looking for a nationwide discount real estate broker. We recommend its concierge plan because it includes everything.
» 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 and mobile app.
- 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 and an elaborate listing agreement 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 on Consumer Affairs.
» Redfin Reviews: The Reality of 1% Fees, Pros, Cons, & Alternatives!
📌 LOCAL EXPERT
ListingSpark is one of the top discount real estate brokerages with its seller-centric all-in-one platform. With the help of its basic technology and strong support team, it guides sellers from listing to closing.
For Home Sellers
- Packages: ListingSpark has a ‘Pay as you go’ package where you need to pay just $7 on a per-day basis to get listed on the platform and access other features. The other is the ‘Pay at closing’ package where you pay 0.5% of the sales price at closing.
- Agent on Demand: You can hire one of their real estate agents for $975. The agent will help you with negotiations, pricing reviews, and contract compliance.
- Additional Features: ListingSpark offers title insurance and escrow services under Spark Title. Additionally, it also provides professional photography services, a lock box, and a yard sign. ListingSpark also has a strong suite of optional features including agents-hosted open houses and transaction coordinators.
For Home Buyers
- Property Search Feature: Home buyers can search for properties based on price range, and property type, along with many other filters.
- No Other Feature: ListingSpark does not have any other feature for home buyers as it is a seller-centric platform.
Mobile App: No
» ListingSpark Reviews: Is the $7/day fee worth it?
- No big upfront fees
- Documentation for the whole selling process
- Thorough market analysis
- Availability of closing calculator
- Slow listing speed due to manual intervention
- Limited coverage
- A La Carte items are a bit expensive
- Involving a closing expert through the transaction process is expensive
ListingSpark’s average rating is 5 out of 5 on BirdEye.
ListingSpark covers properties only in Austin, San Antonio, Dallas, Fort Worth, Houston, Waco, Bryan/College Station, Corpus Christi, and Killeen/Temple in Texas.
4. Ideal Agent
👨💼 GOOD CUSTOMER SERVICE
Ideal Agent helps sellers find quality discount real estate brokers. On average, a seller saves approximately $3,000 – $4,000 while listing with Ideal Agent.
Ideal Agent for Home Sellers
- Agent Matching: Home sellers are matched with one real estate agent, who then guides the seller through their journey. Agents are assigned from the top 1% agents who have closed deals in the seller’s locality.
- Profit Maximization: The agent with whom you’re matched will visit your home to identify the features of your house that stand out. By leveraging these features, the agent will help you in maximizing your sale profits.
- Dedicated Concierge: The discount realtor will also get professional photos taken of your home and help you in setting the list price. In addition to marketing your house, the agent will provide negotiation assistance and take care of closing coordination.
Ideal Agent for Homebuyers
- Home Search Feature: Ideal Agent has a home search feature, where home buyers can look for homes by location, home type, and price range.
- No Other Benefits: Since Ideal Agent is a seller-centric platform, it does not offer a lot of services for buyers. Buyers can hire an agent but you need to get in touch with their customer service to set up a call with the concierge. Post the formalities, the agent will then get in touch with you to understand your needs.
👉 Our Take: Ideal Agent is a good choice for home sellers. They set a high bar for recruiting agents, which means sellers get to work with the top-performing agents in their locality. However, with no significant services for buyers, the platform is not recommended if you’re planning to buy a house.
» IdealAgent.com Reviews: Everything You Need To Know
- Qualified agents
- No obligation to choose an agent
- Nationwide coverage
- Add-on services like professional photos and more
- Good customer service
- Marginal savings
- Single-agent match
- Inconsistent agent results
- No customer dashboard
- No buyer savings
Ideal Agent has an average rating of 4.9 out of 5 on TrustPilot.
» Reviews of Ideal Agent: Reviews, Complaints, and Alternatives
Ideal Agent is available throughout the U.S.
🤵 GOOD AGENT COVERAGE
HomeLight has a network of thousands of successful sellers, best real estate agents, and brokers. They help to create tailored guides and resources in the process of selling a house.
HomeLight for Home Sellers
- Free Agent Matching: The agent matching services at HomeLight are free for home sellers. HomeLight furnishes details of the best real estate agents in your selected neighborhood for both full and limited service plans. Depending on the agent, the traditional 5%-6% commission still applies.
- 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.
- Estimators and Calculators: HomeLight offers Home Value Estimator, Best Time to Sell Calculator, Agent Commissions Calculator, and Net Proceeds Calculator to home sellers.
HomeLight for Home Buyers
- Free Agent Matching: HomeLight also offers agent-matching services to home buyers. They connect you with local agents, who are excellent negotiators, and have the know-how to get you the best possible offer.
- Home Search Feature: Buyers can search for homes by city, zip code or address.
- Estimators: Homelight also offers estimators like Home Affordability Calculator, Down Payment Calculator, and Closing Costs Calculator for home buyers.
👉 Our Take: HomeLight offers decent agent-matching services. However, you may be matched with a listing agent who charges 3% commission, meaning zero savings for you. HomeLight doesn’t do much for sellers looking to save on real estate agent commissions.
» HomeLight Reviews: The Truth You Need To Know
- Good technology
- Good agent coverage
- Digital listing packages
- Average listing speed based on agent selection
- No savings on agent commission
- Inconsistent agent quality
On Sitejabber, HomeLight has an overall consumer rating of 4.45 out of 5.
HomeLight has coverage in Atlanta, Austin, Boston, Chicago, Dallas, Denver, Fort Lauderdale, Houston, Los Angeles, Miami, New York, Portland, San Diego, San Francisco, Sarasota, and Seattle, among other major U.S. cities.
💵 TRADITIONAL COMMISSION FEES
UpNest is a discount realtor marketplace that allows buyers and sellers to compare and connect with the best local real estate agents in an area.
UpNest for Home Sellers
- No Obligation Service: Within 24 hours of signing up, UpNest offers a list of multiple agents to choose from. Moreover, the agent proposals provide a lot of information to choose a discount real estate broker. Nonetheless, there is no obligation to choose a broker from the list.
- High-quality Agents: UpNest has a very selective recruiting policy for partner agents, which is followed rigorously. Partner agents must meet UpNest’s performance criteria to get recruited.
- Marginal Savings: As per UpNest’s model, agents compete for listings, incentivizing them to offer low commissions. However, since there are no pre-approved commission rates, in the end, the negotiation is up to the seller. Consequently, the seller may end up paying more commission as compared to other low cost real estate agents.
- False Claims: UpNest claims to have facilitated billions of dollars in home sales and saved consumers millions of dollars in commissions, but that is inaccurate.
UpNest for Home Buyers
- Buyer Rebate: While offering a buyer rebate completely depends on the buyer agent, UpNest promises a rebate of $150.
👉 Our Take: UpNest only connects buyers and sellers to local agents who can quote their commissions. This does not guarantee savings. On the other hand, Houzeo.com offers custom-made packages with no hidden costs, increasing savings!
» UpNest Reviews: Everything You Need To Know
- No obligation service
- High-quality agent network
- User-friendly customer dashboard
- No savings on agent commission
- Average listing speed
- No guarantee of agent quality
- Poor customer service
UpNest has an average rating of 4.8 out of 5.0 on Google.
UpNest has nationwide coverage.
⛔ LIMITED SAVINGS
SimpleShowing, like any other low-cost real estate broker, matches sellers with real estate agents.
For Home Sellers
- Agent Matching: The hi-tech brokerage matches sellers with local Realtors and charges a 1% listing fee instead of the traditional 3%. This may be a benefit for the firm but it surely is a compromise on quality.
- Self-Tour Lockbox: For an additional $995, lets verified buyers tour your property without a buyer’s agent. With an unrepresented buyer, you save the buyer agent commission as well.
- Additional Services: With SimpleShowing you get access to various services like listing on MLS, professional photographers, home valuation, and much more.
For Home Buyers
- In-person Support: From recommending suitable properties to carrying out negotiations, SimpleShowing offers all the services that a traditional agent does.
- Buyer Refund: If you hire SimpleShowing as your buyer agent, you will get half of the buyer agent’s commission as closing cost credit. This reduces the amount that you are expected to pay at closing.
Mobile App: Yes
👉 Our Take: SimpleShowing is not at all a cost-effective discount for real estate brokerage. The additional charges for a premium lockbox increase the seller’s cost instead of decreasing it.
» Flat Fee MLS: Sell your house with a Flat Fee MLS company instead!
- Qualified agents
- Low listing fee when compared with competitors
- Mobile App
- Marginal savings
- Limited real estate agents
- Compromise on quality because of less number of agents
- Average customer support
- Restricted coverage
SimpleShowing has an average rating of 4.9 out of 5 on Google.
SimpleShowing offers its services in the regions of Florida, Texas, and Georgia.
Redefy offers its services for a flat rate or commission based on your home sale price.
- Full Service: Redefy charges a flat rate of $3,500. When a house is sold for more than $1 million, the platform gets more expensive. In this case, the listing fee is 1% of the total sale price.
Coverage: Redefy covers Colorado, Florida, Georgia, Illinois, North Carolina, South Carolina, Tennessee, Texas, and Virginia.
👉 Our Take: Redefy works on the multiple agent model. They have a field agent who meets clients and an in-house agent for customer service. Since there is no single point of contact, the quality of service is severely affected.
Redefy is a full service real estate brokerage that aims to make the real estate process cost-effective and transparent for home sellers and buyers.
- Decent Listing Fee for Low-Value Homes: If your home value is below one million the flat rate option is a good bargain.
- In-House Support: You are provided in-house support with accurate pricing and other features like home staging.
- Mortgage Calculator: Redefy’s Mortgage Calculator allows you to estimate your overall mortgage, inclusive of insurance and taxes.
In our research, we found some drawbacks of Redefy.
- No Refund Deposit: You have to pay a non-refundable deposit of $500.
- Inconsistent Agent Quality: Redefy has limited agents who cater to a large volume of customers which poses a risk to service quality.
Redefy has a rating of 4.5 out of 5 from 37 reviews on Yelp.
» Redefy Reviews: Check out the customer reviews for Redefy on Yelp.
🚫 RESTRICTED COVERAGE
Prevu is a full-service discount brokerage based in New York that aims to change the old-school ways of the real estate market.
For Home Sellers:
- Listing Fee: Prevu charges a lower commission of 1.5% of the sale price for selling a house.
- Package Features: Prevu’s 1.5% full-service package includes various features like home valuation, 3D virtual tours, open houses, professional photographs, listing on MLS, and social ad campaigns.
- Closing Costs Calculator: Sellers in NYC can get an estimate of their closing costs by using Prevu’s Closing Costs Calculator.
For Home Buyers:
- Smart Buyer Platform: Prevu’s technology allows buyers to search for homes, communicate with their agents online, schedule showings, and make an offer.
- Smart Buyer Commission Rebate: Buyers who purchase a house with Prevu get two-thirds of the commission that Prevu receives from the seller.
- Mortgage Calculator & Closing Costs Calculator: Prevu’s Mortgage Calculator allows buyers to get an estimate of their monthly mortgage payments. The Closing Costs Calculator is only available for buyers in NYC.
Mobile App: No
👉Our Take: Prevu’s listing price is lower than traditional realtor commission, but it is still higher than discount real estate companies.
- Qualified agents
- Buyer rebates
- The listing fee can be variable as per the location, which means limited savings
- Inconsistent and limited agent matching
- Compromise on quality because of less number of agents
- Restricted coverage
Prevu has an average rating of 5 out of 5 on Google.
Prevu is available in New York, Massachusetts, Connecticut, California, Pennsylvania, and Washington.
❌ NO IN-PERSON AGENT SUPPORT
Homie is a discount real estate broker that offers flat listing fees for sellers and commission rebates for buyers.
Homie for Home Sellers
- Flat Rate: Flat fee listing of $3,500. This may be significant for low-value homes.
- Agent Support: Homie agents are salaried employees, making them available to offer all the support the seller may need. However, they do not provide in-person support and visits. This means that the seller may not receive the personalized advice they may be looking for.
- Homie-to-Homie: Depending on the state, the seller can eliminate the buyer agent commission if they sell to a Homie buyer.
Homie for Home Buyers
- Buyer Rebate: Homie offers a rebate of 1%-1.5%, which the buyer can direct towards the closing costs. However, this is only applicable for homes purchased from non-Homie buyers where the seller pays the buyer agent fee.
- Homie Cash™: This feature allows buyers to make an all-cash offer, increasing their chances of offer acceptance. It also puts the buyer in a better position against iBuyer companies. However, the Homie Cash™ has a loan program fee of 1%.
👉 Our Take: With a limited number of agents, Homie may not be able to provide due attention to all its clients. Moreover, there may be a lack of personal touch as they do not conduct site visits.
» Homie Reviews: Reviews, Alternatives, and Everything You Need to Know
- Decent listing fee
- Good agents
- Rebate for buyers
- Compromise on quality due to lesser number of agents
- Remote agent support
- Limited coverage
- Low quality customer support
- Poor technology
Homie is rated an average of 4.3 out of 5 on Google.
Homie covers only Arizona, Colorado, Idaho, Nevada, and Utah.
Here’s a quick recap of the best discount real estate brokers in America:
America’s Best Discount Real Estate Brokers (2023)
We’ve reviewed the best discount real estate brokers in 2023
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.
|Flat Fee MLS||Flat Rate||Low Commission||Virtual Full Service|
|Buyer Agent Commission|
|In-person Agent Support|
|Offer, Pricing, Seller Negotiations|
|Showing Time and Open Houses|
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!
|Northeast||Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont|
|Midwest||Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin|
|South||Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, Washington, D.C., West Virginia|
|West||Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming|
- 💸 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.
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:
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.
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.
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
|A-la-Carte Services||You will find many low-cost real estate brokerages who will provide you with cheap or free services, but you won’t get the same services as a traditional agent. |
You might have to choose a more expensive package to receive full service from a realtor or a real estate agent.
|Cancellation Fees||In the agreement with the discount realty company, they can charge a minimum withdrawal fee within a specified period of time specified. |
It is imperative to carefully review the terms and conditions of the contract before signing.
|Not For First-Time Sellers||Technology has changed the way the real estate market has always worked. |
Most discount real estate brokerages are digital, so you almost never have to talk to anyone in-person.
The first-time sellers might not be able to understand how complicated the whole buying-selling process is.
|Salaried Brokers||Many brokers at a discount real estate brokerage may be paid a salary. This takes away the agent’s incentive, so they may not be as motivated to go the extra mile to find buyers. |
Example: Redfin has real estate brokers working for salaries.
|Personal Attention||Most discount brokers offer lower commission rates because they have more clients than a traditional Realtor. This may limit the personal attention and support you get. Many companies do not have a one-to-one approach. |
They have a team to handle the transactions at different stages. So the entire buying-selling experience may vary.
|Home Staging||A traditional Realtor may help you prep your house for sale. Some discount brokers may not include home staging in their package.|
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
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
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?
What is Houzeo?
An overview of what the platform is all about
» 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
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.
What Are The Different Types of Discount Brokers for Home Sellers?
Generally, there are 4 types of discount brokers:
1. Low Commission: Brokers who charge 1 to 1.5% commission to list and sell your home.
2. Flat Fee Discount Broker: Brokers who charge a flat fee, with paid services.
3. Virtual Full- service: A Virtual full-service discount broker does everything - listing to closing - online.
4. Flat Rate Brokers: These are different than Flat Fee Brokers, wherein they provide full service for a flat rate.
How Much Do Discount Real Estate Brokers Charge to Sell a Home?
Discount brokers can charge either a flat fee or a smaller commission – between 1% and 2%. Houzeo has negotiated great rates with top discount brokers, and charges less for a Flat Fee MLS listing, which gives you all the marketing prowess of the MLS!
Will Discount Brokers Advertise Open Houses for Me?
Almost all discount brokers will advertise your open house on the MLS for you. Houzeo makes it very easy to request an open house. Watch thisvideo to see how to manage showings.
How Can I Find Discount Real Estate Brokers Near Me?
You can search for discount realtors near you using two ways - 1) Search on the web for a particular state, and 2) Check with local agents, friends, or families who have exposure to the real estate domain.
» Note: The discount real estate listing companies may differ from state to state and thus you will be required to remain aware and updated.
Can You Negotiate Brokerage Fees?
Yes! You can always negotiate brokerage fees with your agent. Before you do, make sure you offer a full buyer's agent fee. Next ensure your commission fee is in line with your area. This will work best for those easy to sell houses.
What Do Online Real Estate Discount Brokers Do?
Online Real Estate Discount Brokers could be an Agent, Brokerage, or Company who offer real estate services for a low flat rate or an upfront commission.
What Percentage Do Real Estate Brokers Charge?
The average commission for a real estate agent is somewhere between 5% and 6% which are negotiable.
- 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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