9 Best Low Commission Real Estate Companies (2021 Rankings)

9 Best Low Commission Real Estate Companies

Gone are the days when the real estate commissions were “fixed” at 6% and most of the agents had no motivation to work for the customers but for the commissions.

These opulent commissions were charged to home sellers on their home’s gross sale price and often made them lose out thousands of dollars in savings. The “6%-figure” has been a longstanding hindrance in customers getting the best real estate services and maximum savings.

However, since the advent of technology, many low commission real estate companies have popped up which provide the same services as a traditional agent but at a pre-determined flat fee or a discounted fee of 1%-2%.

These Flat Fee and Discounted Fee business models gained prominence after the Department of Justice and Federal Trade Commission backed them and weakened the hold of the National Association of Realtors on American real estate.

All these reasons have catapulted us into a new era of “low commissions real estate services” and many new companies are coming up with innovative services and business models to entice home sellers and home buyers.

But which ones are the best?

Which ones are the true-money-savers and which ones are just marketing gimmicks?

We have listed out the 9 best low commission real estate companies that offer the best quality of services, provide excellent customer service, have reliable ratings and reviews to back their claim, and most importantly offer true savings!

So, let’s jump in.

9 Low Commission Real Estate Companies

Houzeo is the most advanced for sale by owner platform in the United States and connects home sellers and buyers to brokers.

But then how is Houzeo a low commission real estate company?

Well, Houzeo allows home sellers to list their home on the MLS for a flat fee of $199, prices vary according to state, without the need of a listing agent, thus saving you 50% of agent commissions right away. You can customize the packages as per your requirements as many services like contract review, pricing assistance, professional photography etc. are available on a la carte basis.

This way, Houzeo not only allows you to keep complete control over your home sale but also your expenses.

Houzeo has nationwide coverage and a 100% automated process thus eliminating the need for manual efforts and taking advantage of the technology to provide quick, effective, and wholesome services to the customers. The home sellers, after registering, get access to an exclusive seller dashboard where they can receive, review, and compare offers. Adhering to the Offers feature, Houzeo recently launched a Counteroffer feature wherein the home seller can directly make a counteroffer on the offer received. You can also make changes to your listing by yourself.

Houzeo’s average listing live time is 24 to 48 hours from the moment you submit all the details and the paperwork, thus saving you a lot of time and providing the quickest listing services you can get. Houzeo lets you save half the commissions instantly and makes it easy for you to find an unrepresented buyer i.e., the buyer without an agent, to save the other half in commissions by allowing you to share your listing on the social media platforms right from your seller dashboard.

 PROS

  • Auto population of the listing information saves you a lot of time
  • 100% digitization i.e., fill out, sign and submit your paperwork from Houzeo’s dashboard
  • A lot of a la carte services are available to choose from
  • Mobile App that allows you to browse homes on the go and edit your listings

CONS

  • None

😃 WHAT IS MLS?

An MLS, or multiple listing service, is a directory of available properties in a certain area. Each region or market has its own local MLS and websites like Redfin and Zillow populate their listings from these directories.

>> Learn How to List on MLS as a For Sale By Owner <<

Multiple Yard Signs

Home sellers across America have sold their homes themselves using Houzeo and saved $$$

You can do it too!

Clever comes with both the services types i.e., a flat fee model and a discounted model.

For homes valued at less than $350,000, Clever charges you a flat fee of $3000 as a listing fee, however, if your home is valued at more than that then Clever charges you 1% of the home’s sale price.

For the fee, Clever gets you in touch with their top-rated local agents who provide you full real estate services and also negotiates savings on your behalf.

Clever has a nationwide presence and boasts of its strong agents’ network. They have even teamed up with top real estate companies like Berkshire Hathaway and Keller Williams. So, if you want a full-service agent service but only want to pay half the commissions then Clever can be a good choice for you.

However, a Flat Fee MLS service like Houzeo can help you save 50% of commissions right away and enable you to save the rest of the 50% as well by finding an unrepresented buyer with its social media presence.

The process of selling with Clever is quick and easy. You just answer a few basic property-related questions and their Concierge Team will reach out to you shortly. Each of Clever’s team member is a licensed agent, so they can hook you up with a local low commission real estate agent who matches your unique situation

Clever does not bind you in working with them. You are free to interview as many agents as you want and choose the one that you like. In case, you are not happy with the services you can choose to walk away anytime you want.

 PROS

  • 100% free service and no compulsion to work with their recommended agents
  • Full-service packages for a flat fee of $3000 for homes under $350,000 and 1% for homes above that price

❌ CONS

  • If you want to work with specific real estate brokerage then Clever might have limited options
  • Agents assure full services; however, they may not provide premium upgrades like professional home staging, hosting open houses or drone photography

🎯 Key TakeAWAY

Clever seems like a decent option if you want to work with a full-service agent, however, Houzeo offers a virtual full-service package for just $999 that gives you all the services you need. Not to mention, Houzeo’s technology sets it apart.

If you have been looking for low commission real estate brokers to sell your home with then you must have come across Redfin.

One of the biggest discount brokerages in the US, Redfin lists your home for a 1.5% listing fee. If you sell your home with Redfin and then buy with them within 365 days then they will charge you only 1% as a listing fee.

If you use their Redfin Now service, they can make an all-cash offer on your home and you can close the deal within 10-30 days, however, this service is only for those who want a quick sale and do not want to indulge in the home selling process. Also, this service can take away 10-12% of your sale proceeds and you might end up paying double the traditional agent commissions.

If you go for their Concierge services then you will have to pay 2.5% as a listing fee. No matter which service you choose you will have to pay the buyer agent commission of 2.5%-3%. Also, their agents are salaried employees and handle 3X as many customers as typical realtors, this “less employees-more home sales” operations allow Redfin to churn out their profits.

However, this also could be counterproductive because the employees don’t have the added incentive of commission, no matter how much they sell the home for, and since they handle so many customers at a time, there is a possibility that your home might not get 100% attention from the Redfin agent.

So, Redfin is one of the better low commission real estate brokerage firms but they surely have their pros and cons, and these might affect your savings significantly.

Since Redfin takes on 3X the customers than a traditional agent, they need to do something to lower the workload of their employees, and that’s why they have a team-based approach. This means your complete home sale won’t be with one Redfin agent but with multiple Redfin employees, your agent might take care of negotiation and pricing assistance, and the other team members look after marketing, open houses, and closing logistics. This sounds sensible but in case you are unhappy with something or need some assistance, you will have to get in touch with various Redfin employees rather than one point of contact.

This might cause communication issues, or even delay your home sale. Many of the Redfin reviews have pointed out the same.

PROS

  • Multiple services available to choose from: Redfin Now, Redfin Regular Listing Service, Redfin Concierge Service
  • Premium placement on Redfin’s home search app
  • Redfin’s exclusive seller dashboard allows you to manage your listing from anywhere you want

CONS

  • Compared to traditional brokerages, Redfin has limited agent selection
  • Less personalized support, as one employee handles multiple customers
  • Redfin’s team-based approach increases the risk of mistakes, poor communication, and delays

🎯 Key TakeAWAY

Although, Redfin’s 1.5% listing fee might sound like a money-saving opportunity but your home selling experience with them might be a frustrating one.

>> Redfin Reviews: The reviews you NEED to read before listing <<

Houwzer is a real estate brokerage that follows a flat fee model and charges you a flat fee of $5000, no matter what is the value of your home, whether $200,000 or $2 million. Hence, their services are mainly beneficial for home sellers who’ve higher valued homes. To put that in perspective, on a $1 million home you’d paying $5000 instead of a traditional commission of 3% i.e., $30,000, that’s a saving of $25000.

However, Houwzer does not have a nationwide presence and operates only in a select few regions on the eastern coast. Also, they are truly a low commission real estate company only if your home is higher priced, if you have a home that is let’s say valued at $100,000 then you’d be paying $5,000 instead of a traditional 3% commission of $3,000.

Similar to Redfin, Houwzer employs salaried agents who work as a team to help you sell your home. They also handle 3x more clients than any other traditional brokerages and that’s you can might not get as much personalized support as you’d require.

Unlike some Flat Fee Companies, which do not give you any agent to work with and charge you only to list on the MLS, Houwzer functions as a full-service brokerage and provides complete services to you, right from beginning to the end.

If you go with Houwzer, then the agent assigned to you would not be handling all the tasks, instead the tasks will be distributed among the team members and each one will be handling a separate task. Even if this sounds efficient, you’d be having to deal with multiple points of contact instead of a single point of contact.

PROS

  • If your home is valued at a high price, then you’d be saving a huge amount
  • Premium marketing services and virtual home tours at no extra cost

CONS

  • Many Houwzer reviews have pointed out that their team-based approach leads to a lot of miscommunication and mistakes
  • They have a limited number of registered agents, so you won’t have many choices if you want to change your realtor
  • If your home is valued at less than $170,000 then you’d be paying Houwzer more than you’d to a traditional agent

🎯 Key TakeAWAY

If your home is valued at a higher price then Houwzer would be a great option for you, however, if your home is lower priced or in the range of $500,000 then you can find better deals with other low commission real estate companies. 

Also, if your home value is below $170,000 then you’d be paying more to Houwzer than to a traditional agent.

SimpleShowing is one of those low commission real estate companies that offer good savings but their services come with some risks.

One of the biggest drawbacks of their services is lack of personalization since they handle 5x more customers than any traditional agent and in return have a low inventory of licensed agents. This askew balance of agents and customers leads to overwork and a lack of personalization.

However, this is a common scenario in many low commission real estate companies, sometimes referred to as Flat Fee Companies or Discount Brokerages, as many customers are lured in with bait to save thousands of dollars.

Because of the sheer overwork, the agents assigned to you will be handling multiple sellers at a time and thus would affect your home selling process, as you will have to compete for your agent’s attention and time.

Although a good business model could affect the services provided to the home sellers and lead to more customer complaints and compliments. Due to overwork, the agents could misplace paperwork, miss deadlines, update you late, and many other issues. This would eventually cost you more money than save.

PROS

  • One of the only low commission full-service brokerages in the US which offers full services at a discounted rate of 1%
  • Good choice for home sellers with mid-priced homes

CONS

  • A limited number of agents to choose from
  • Agents handle multiple home sellers at a time, leading to costly mistakes like misplacing paperwork and delay in deadlines

🎯 Key TakeAWAY

Although SimpleShowing is one of the few brokerages offering full services at a discounted fee of 1%, it is only available in a few states and thus their services are not available to all the home sellers. 

So, if you are selling in these states then they are worth a try!

Ideal Agent is one of those low commission real estate companies that matches you with a full-service realtor in your locality and also, they negotiate commission for you, but charge 2% as listing commission.

The company is matches you with top realtors from your area and their listing fee of 2% might sound affordable and money-saving, but it is still costly than the other options compared in this article.

Why?

Imagine if your home is valued at $600,000 and Ideal Agent matches you with a full-service agent that helps you sell your home for a commission of 2%, that’s $12,000. On the other hand, let’s say if you choose Houzeo’s Virtual Full-Service Package of $999 then you’d be getting all the services from an agent for a flat fee of $999, So, you are saving $11,000 in this case.

Price transparency and affordable packages are what makes Houzeo one of the best low commission real estate companies out there.

 PROS

  • Matches you with top-quality agents from your locality
  • Full-service support
  • Signing up is free and its not mandatory to hire their recommended agents

CONS

  • As per your state, you might find much cheaper options than Ideal Agent
  • Real estate companies with similar business models offer multiple agent recommendations and allow you to choose the one that you want, Ideal Agent offers only one agent match.

🎯 Key TakeAWAY

Ideal Agent might do an excellent job at matching you with a top agent from your area, however, there are other low commission real estate companies who offer the same service for a much lower fee, and Houzeo could offer you all the same services for a flat fee of $999.

Homie markets itself as a “we provide everything” real estate company, they promise to provide you all the services that a traditional agent provides but their service-model is more suitable for an experienced home seller, and thus is not suitable for everyone.

Many of the Homie reviews have claimed that their employees handle 10x more clients than a traditional agent and they compromise on the quality of full services they provide to the home sellers, most of the times they only provide fewer services than promised. Thus, many home sellers have complained about their bad experiences with Homie.

When you work with a traditional agent, the agent is there with you to help you sell your home, this allows a smooth flow of communication and a lot of personal support, however, when selling with Homie, your agent will be 100% remote, thus it might lead to delay in communication and less personal support. Also, your agent will be handling multiple other clients, this might lead to delay in paperwork and even delay in important updates.

They assure you full services but might not provide services like agents visiting your home for a personal chat or hosting open houses, etc.

PROS

  • They have a Flat Fee business model which allows you to save big on costly homes
  • The listing process is quick and can push your home into the market within 3 days

CONS

  • ZERO personalization
  • Bad home selling experience is a consistent complaint from their home sellers

🎯 Key TakeAWAY

Homie’s Flat Fee service model allows you to save big on costly homes, however, you will have a frustrating home selling experience with them as they do not provide any personalized support. 

So, if you want to do everything on your own and save money, then Houzeo would be a great option for you in comparison to Homie.

Redefy follows a flat-fee model and a percentage-based model and charges you according to your home’s value. If your home value is below $1 million then they charge you a flat fee of $3,500, if your home is above $1 million then they charge 1% of the gross home price.

Redefy follows a similar operating model like Redfin as it also operates as a team and their in-house agents distribute the tasks among themselves and help your sale your home. This way, they are able to sell more homes with fewer agents.

Redefy is one of those low commission real estate companies that offer all the services of a traditional agent, however, their team-based model might lead to a overwhelming selling experience, also, they offer only limited agent matches.

Also, there has been complains that they trim their services. They promise you full services but refrain from doing some of the services like home visits, or hosting open houses.

Another unusual practice that you will notice when selling with Redefy is they charge you a non-refundable fee of $500, if your home sells, they credit it towards your listing fee, however, if your home is not sold then you don’t get any refunds.

PROS

  • You get personalized agent support up to an extent
  • Discounted listing fee saves sellers an average of $8,500

CONS

  • You’ll have to pay an upfront, non-refundable $500 fee
  • Team-based model increases risk of errors, delays, and miscommunication

🎯 Key TakeAWAY

A flat fee of $3,500 is an attractive option for home sellers whose homes are valued at a higher price, however, you will be getting trimmed services and less personalization. 

If your home is valued at more than $1 million, then there are many other options that offer better services and maximum savings.

Trelora is a flat-fee real estate brokerage with listing fees that range from $3,000-4,000, depending on your location.

As with most similar companies, Trelora doesn’t give you a single, dedicated agent to guide you through the process. You’ll work with a team of agents instead, with multiple people managing different aspects of your sale. However, Trelora agents juggle up to 20x as many customers as the average realtor.

A team-based approach often creates challenges for sellers, but the risks are particularly noticeable with Trelora.

As noted, each of its agents juggles up to 20x as many customers as the average realtor. That’s the largest ratio of any company on this list (by far!), and — based on common Trelora complaints — it makes mistakes and oversights more likely.

PROS

  • Offers commission savings that really shine at higher price points
  • You get full in-person support, including open houses

CONS

  • Team-based approach limits Trelora’s ability to provide personalized support
  • Trelora juggles more customers per agent than any other company on this list

🎯 Key TakeAWAY

Trelora’s flat listing fee could translate into huge commission savings on expensive homes, but the discounted rates come with serious risks. If you’re confident your home will “sell itself,” the savings may be worth it. 

If not, compare your options to find another low commission company with fewer service risks.

Selling with Low Commission Real Estate Companies

What are the average real estate agent commissions?

According to Real Trends’ housing market report 2020, the average real estate commissions stayed below 5% for the second consecutive year. In 2020, the commissions have fallen to 4.94% from 4.98% in 2019.

Assuming that the commissions are evenly split amongst the two agents, each agent will be pocketing 2.47% of commissions.

However, the 6% commissions model is slowly declining as more flat fee realtors and discount brokers are showing up in the real estate industry. Consumers have more choice now to choose from and save their profits.

How much can I save with a low-cost realtor?

Realtor commissions can burn a big hole in your pockets, however, if you go with a flat fee realtor like Houzeo, you can save thousands of dollars right away.

On a $500,000 home sale, paying standard rates for real estate commission could cost you $30,000. Hiring a low commission agent would save you as much as $10,000!

How much Houzeo can save you?

Package
and Price

Traditional Agents
(6% commissions)

Savings with
Houzeo’s Packages

Bronze – $199+

$17,935

$17,736

Silver – $299+

$17,935

$17,636

Gold – $399

$17,935

$17,536

Platinum – $999

$17,935

$16,936

Commissions and savings are calculated on the median US home price of $298,933, according to Zillow’s Home Value Index

Discount Brokers Flat Fee MLS