Most home sellers find paying the typical 6% commission a pain in the neck. You can go for low commission real estate agents, that way you not only get all the services but can also save money.
Key Takeaways
- Who are the Biggest Low Commission Brokers: Redfin and Ideal Agent are the biggest low commission real estate agents. If you want to save even more, choose a flat fee MLS listing service like Houzeo.
- Types of Low Commission Agents: The 3 types of low cost realtors are flat fee brokers, virtual full service agents and flat rate low commission agents. They vary based on their method of action.
- Which is Better – Low Commission Agent vs Flat Fee MLS: Low commission agents and Flat Fee MLS both have their perks but with flat fee companies, at a flat rate, you can opt for only the services you require.
- Bottom Line: Every seller wants to pay less commission. Low cost realtors help save cash and get full service. But with Flat Fee MLS services or cash companies you can save more and make a quick sale.
Rankings: 10 Best Low Commission Real Estate Agents & Companies
| Low Commission Realtor / Company | Fee | Max Savings | 100% Online | 5-star Reviews* | Broad Coverage | Mobile App |
|---|---|---|---|---|---|---|
| 1. Houzeo | $329 Flat Fee | ✅ | ✅ | ✅ | ✅ | ✅ |
| 2. Redfin | 1.5% Commission | ❌ | ❌ | ❌ | ✅ | ✅ |
| 3. Ideal Agent | 2% Commission | ❌ | ❌ | ✅ | ✅ | ❌ |
| 4. HomeLight | 2.5% Commission | ❌ | ❌ | ✅ | ❌ | ❌ |
| 5. SimpleShowing | 1% Commission | ❌ | ❌ | ✅ | ❌ | ✅ |
| 6. Trelora | 1.5% Commission | ❌ | ❌ | ❌ | ❌ | ❌ |
| 7. Homie | $3,500 Flat Fee | ❌ | ❌ | ❌ | ❌ | ✅ |
| 8. Houwzer | 1% Commission | ❌ | ❌ | ✅ | ❌ | ❌ |
| 9. Redefy | $3,500 Flat Fee | ❌ | ❌ | ✅ | ❌ | ❌ |
| 10. Prevu | 1.5% Commission | ❌ | ❌ | ✅ | ❌ | ❌ |
Reviews: 10 Best Low Commission Real Estate Agents & Companies
1. Houzeo.com
#1 Flat Fee MLS Service
Houzeo.com
- Listing Fee: $399
- Available nationwide
4.9/5
(4,523 reviews)
4.9/5
(4,523 reviews)Houzeo offers 4 Flat Fee MLS packages.
- Bronze Package – $329+: This package offers Houzeo listing only for 6 months with maximum photos.
- Silver Package – $399+: This includes everything that home sellers typically look for.
- Gold Package – $379+: It is Houzeo’s signature MLS package and includes all the technology Houzeo is known for Houzeo Showings, Houzeo Offers, and DigiTransact.
- Platinum – $349+: It includes the assistance of a licensed broker to help you with negotiations, disclosures, and closing.
👉 Our Take: We recommend the GOLD plan. You’ll have access to Houzeo tech, making managing showings and offer negotiations easy!
» Houzeo Reviews: Houzeo is 100% online. You can finish listing formalities in less than 60 mins.
Houzeo is America’s #1 Flat Fee MLS service because of 4 reasons:
- Max Exposure: Houzeo MLS packages give you access to the MLS, Zillow, Trulia, Realtor.com, Redfin, and 100s of other websites.
- 5-star Customer Service: Houzeo has a fully staffed customer service desk available 6 days a week. Chats and emails are open 7 days a week. This is rare in today’s world.
- 100% Online: Houzeo is high-tech. For you, this means easy listing, fast changes, online showings, and online offers. Houzeo Mobile App is also very powerful.
- No Listing Commission: In most states, you’ll be paying just a small flat fee to list on MLS. Houzeo covers 47 states + DC! And remember, all fees are disclosed upfront, so there are no Houzeo hidden fees. You get to bypass the listing agent commission!
There are no dealbreakers with Houzeo.
» Houzeo Reviews: Houzeo is rated “Excellent” with a 4.9 out of 5 star rating by 4,521 home sellers on Google Reviews and Trustpilot!
Houzeo is rated 4.9 out of 5 stars by thousands of home sellers on Google & Trustpilot.
» Houzeo Reviews: Check out how Team Houzeo has addressed all Houzeo complaints from home sellers.
Houzeo.com is America’s #1 ranked Flat Fee service. Houzeo provides an unbeatable combination of max savings, 5-star customer support, and cutting-edge technology.
Houzeo’s Bronze package includes a free listing on Houzeo.com. You pay a refundable fee of $49 for a yard sign, and once you send us a selfie with this yard sign, you get your $49 back. So, it is a FREE listing!
The Silver package is priced at $399+, and the Gold at $429. Sellers can ask for the full-service Platinum package which costs $999+.
2. Redfin
BEST TECH-ENABLED BROKERAGE
Redfin.com
- Listing Fee: 1.5% of sale price
- Available in 80+ U.S. Markets
- 3.3/5
(372 Reviews)
3.3/5
(372 Reviews)Redfin is one of America’s top discount real estate brokerages. 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 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: We recommend Redfin’s concierge service. This service enhances the value of your house with a professionally managed design plan and no upfront fees.
» Selling With Redfin: Is it worth selling with Redfin?
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.
» What is Redfin? Is it truly a smart choice to choose them? Read the comprehensive review to know more!
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 additional services.
» Redfin hidden Fees: Check this out to learn more about their hidden fees.
Redfin has an average rating of 3.3 out of 5 stars on Consumer Affairs.
» Redfin Reviews: The Reality of 1% Fees, Pros, Cons, & Alternatives!
Redfin is a well known brand with a distinguished reputation. They have salaried agents and advanced technology.
Though they offer three packages they take 18 days to list your property. Previous customers have complained about the lack of personalized support which could be a bump in your sale.
3. Ideal Agent
GOOD CUSTOMER SERVICE
Ideal Agent
- Listing Fee: 2% of sale price
- Nationwide coverage
- 4.9/5
(5,727 Reviews)
Ideal Agent is among the top discount brokerages. It is an agent matching service that specializes in home selling.
- Full Service – 2% Commission: The full-service package will get you all the services from start to end. This includes professional photos, negotiation, and closing assistance.
👉 Our Take: Ideal Agent is a good choice for home sellers. Although their overall online reviews are good, they are often inconsistent while matching agents with clients. They have no services for home buyers.
» What is Ideal Agent: Check out our reviews of Ideal Agent to know more about them.
Ideal Agent is an agent matching service that helps sellers find low commission real estate agents.
- Agent Matching: They claim that you will be matched with an agent from the top 1% producers in your locality.
- Pre-Negotiated Commission: Ideal Agent has pre-negotiated the commission with their agents. This allows sellers to focus on the other aspects of the transaction.
- Profit Maximization: Your agent will leverage the best features of your house and help maximize your sale profits.
- Dedicated Concierge: Their agents guide you in every step of the transaction from marketing, to negotiation assistance, and closing.
» How does Ideal Agent work: Here is a detailed explanation about them. Check it out!!
Ideal Agent has some drawbacks we came across in our research.
- Low Savings: Ideal Agent charges more than most low-commission companies, compromising your savings. You will be paying a total commission of 4.5% – 5% even with discounted listing fees.
- Additional Referral Fees: Ideal agent fees includes a 25% referral fee from real estate agents after successful transactions. Since you pay the agent, these fees are essentially going from your pocket.
- Outdated Technology: Their agent matching algorithm is inconsistent. Several customers complain about being assigned sub-par agents.
- No Buyer Support: Ideal Agent isn’t a buyer-focused platform and they offer no significant benefits for home buyers.
Ideal Agent has a rating of 4.9 out of 5 from 5,727 reviews on TrustPilot.
» Ideal Agent Reviews: Check out our reviews of Ideal Agent to make an informed decision.
Ideal Agent is an agent matching service that bridges sellers and buyers with licensed real estate agents in their locality.
They offer a dedicated concierge but have weak technology. Customers who have worked with them prior have complained about hidden charges as well.
4. HomeLight
GOOD AGENT COVERAGE
HomeLight
- Listing fee: Varies
- Good agent coverage
- 4.5/5
(233 Reviews)
4.5/5
(233 Reviews)HomeLight is an agent matching service, free for home sellers. They furnish details of the best real estate agents in your selected neighborhood for both full and limited service plans.
- Free Agent Matching: Depending on the agent, the traditional 5% – 6% commission still applies. But they offer all the services you will require during your sale.
Coverage: 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.
👉 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.
» What is Homelight: Check this out to know more about them.
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.
- Good Agent Coverage: They have a good number of agents as per their coverage area.
- Estimators and Calculators: HomeLight offers home value estimator, best time to sell calculator, agent commissions calculator, and net proceeds calculator.
» How does Homelight Work? Check this out to know more about them and their procedure.
In our research, we came across some major drawbacks of 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.
» How much does HomeLight Cost? Check this out to find out if they are really affordable.
HomeLight has a rating of 4.45 out of 5 stars from 233 reviews on Sitejabber.
» HomeLight Reviews: Check out our reviews of HomeLight to make an informed decision.
HomeLight is a real estate website that puts home sellers, agents, and buyers under the same roof.
They have agents handling multiple clients juggling their time. This could lead to miscommunication and discomfort.
5. SimpleShowing
QUALITY AGENTS
SimpleShowing
- Listing Fee: 1% of sale price
- Restricted coverage
- 4.9/5
(out of 108 reviews)
4.9/5
(out of 108 reviews)SimpleShowing is a hi-tech brokerage that matches sellers with local Realtors.
- Agent matching – 1% Commission: They give all the services of a traditional agent and additional services like a self-tour lockbox for $995, listing on MLS, professional photographer, home valuation, and much more. They also assist with contacts and negotiations.
Coverage: In Florida they cover Miami, Orlando, Tampa and Fort Lauderdale, in Texas they cover Dallas and Fort Worth and in Georgia they cover Atlanta and Savannah.
👉 Our Take: SimpleShowing is not at all a cost-effective low commission real estate brokerage. The additional charges for a premium lockbox increase the seller’s cost instead of decreasing it.
SimpleShowing, like any other low cost real estate broker, matches sellers with a real estate agents.
- Additional Services: There are additional services at a cost that could come in handy for the seller. Such as professional photography and home staging.
- Mobile App: You can schedule showings on their mobile app.
- Buyer Refund: You can hire SimpleShowing as your buyer agent and get half of the buyer agent’s commission as closing cost credit.
In our research, we found some major drawbacks of SimpleShowing.
- Average Customer Support: Past customers have complained about lack of support from the agents.
- Poor Agent Quality: SimpleShowing works on the model of minimum listing agents, this compromises quality.
SimpleShowing has an average rating of 4.9 out of 5 out of 108 reviews on Google.
» SimpleShowing Reviews: Check out the customer reviews of SimpleShowing.
SimpleShowing is a full-service brokerage licensed in GA, FL, and TX.
They provide technology, such as the use of their mobile app, to simplify the traditional home selling process. However, with their limited coverage and agents, they might not cover all your needs.
6. Trelora
GOOD ADD-ON FEATURES
Trelora
- Listing Fee: 1% of sale price
- Restricted coverage
- 4.9/5
(482 reviews)
Trelora is a full-service realty that offers services at discounted rates to home sellers. They strive to modernize home ownership through the use of technology.
For Home Sellers:
Trelora offers two listing packages for sellers:
- Trelora EasySell – $2,500: This package is available only through Trelora’s mobile app where sellers can get virtual full service for a flat fee.
- In-Person Full Service – 1% Commission: This package offers in-person full service for a commission of 1% of the sale price at closing.
For Home Buyers:
- Buyer’s Rebate: With Trelora, home buyers can get a rebate of up to $2,500 by bundling mortgage and title.
Coverage: Trelora offers services only in Arizona, California, Colorado, Georgia, North Carolina, South Carolina, and Washington.
👉 Our Take: We recommend Trelora EasySell for the use of the mobile app which ensures an easier process.
Trelora was founded in 2011, it is a well-regarded low commission real estate brokerage. The firm has a reputation for upfront service and zero hidden costs.
- Good Add-On Features: They offer add-on features like listing consultation, professional photography, and negotiation assistance.
- Good Technology: Their software claims to make the process for home sellers digital and straightforward. However, not much information was found on the specifics of their tech stack.
» What is Trelora? Check this out before choosing them.
Trelora has drawbacks you should know about before you venture with them.
- Multiple Agents Assistance: Trelora agents handle multiple clients to save on operating costs. Different low-cost real estate agents assist you at every sale stage leading to miscommunication.
- Poor Customer Support: Customers who have worked with them previously have complained about poor customer service quality.
Trelora has an average rating of 4.9 out of 5 from 482 reviews on Zillow.
» Trelora Reviews: Check out the customer reviews that can help you know more about Trelora.
Trelora is a low commission brokerage headquartered in Denver, CO.
They offer low commissions and rely heavily on their team to serve a high volume of clients. You might face the issue of less personalized service.
7. Homie
FLAT RATE PACKAGE
Homie
- Listing Fee: $3,500 Flat Fee
- Restricted coverage
- 4.3/5
(795 reviews)
Homie offers one flat rate package for home sellers and a few services to home buyers.
For Home Sellers
- List at $3,500: You get agent representation, local MLS listing, exposure on popular real estate websites, contract negotiation, etc.
For Home Buyers
- Buyer Rebate Program: Use Homie Title, Homie Loans, or Homie Insurance to earn a buyer rebate at the time of closing.
- Homie Cash™: Make an all-cash offer with this feature and increase the chances of getting offers. You can close the deal in 10 days with Homie Cash™. But it comes with a 1% program fee.
👉 Our Take: Homie’s services can benefit both home sellers and buyers. But, they provide more services for home buyers including a cash rebate. So, we recommend Homie to home buyers over sellers.
» Homie Reviews: Does Homie really benefit you in the 2023’s market? Click to find out.
Homie offers flat rate services to home sellers and rebates to buyers.
- Agent Support: Homie provides agent representation services to home sellers. However, they do not provide in-person support and visits. With Homie’s agent’s support, an experienced home seller may find their service useful.
- Homie-to-Homie: Depending on the state, the seller can eliminate the buyer agent commission if they sell to a Homie buyer.
- Buyer Rebate: Home buyers can earn a buyer rebate at the time of closing. To get the rebate buyers need to use their services like Homie Title, Homie Loans, or Homie Insurance.
» What is Homie? Read the comprehensive review to know more!
During our research, we found some drawbacks in the services of Homie, here are some that stood out:
- Sub-par Agent Service: Customers have accused numerous Homie agents of miscommunication, limited knowledge, and lack of experience.
- Inconsistent Service Delivery: Homie has many real estate agents, but fails to offer consistent performance. Their services either are satisfactory or unsatisfactory with no in-between.
- No Advanced Tech: Some clients were disappointed with how slow and outdated their technology was.
- Limited Coverage: Homie does not provide its services to many states except Arizona, Colorado, Idaho, Nevada, and Utah.
Homie has a total of 4.3 out of 5 stars from 795 total reviews on Google.
» Homie Review: Does Homie really benefit you in the 2023’s market? Click to find out.
Homie’s $3,500 package allows sellers to list and sell their homes. Whereas, home buyers can earn a cash rebate, an all-cash offer, and more.
We recommend Homie to experienced sellers and buyers. If you wish to use Homie, ensure to follow up with them thoroughly to get your work done.
8. Houwzer
BEST FOR HIGH VALUE HOMES
Houwzer
- Listing Fee: 1% of sale price
- Restricted coverage
- 4/5
(43 reviews)
4/5
(43 reviews)Houwzer offers three different deals for sellers.
- Flat rate – 1% Commission: Houwzer charges a 1% listing fee. This low-commission Realtor is ideal for homes with a value above $1M.
- Buy & Sell Bundle: If you purchase a property along with selling your house, you will get a transferable refund of $2,500 on the listing fee.
- Convenience Offer: You will receive a cash offer from them. You get better offers from prospective buyers and pre-qualify for a mortgage on a home purchase.
Coverage: Houzer offers its services only in Florida, New Jersey, Maryland, Pennsylvania, Virginia, and Washington.
👉 Our Take: If you’re looking for a low-commission real estate brokerage that’s easy on the wallet for high-valued properties, Houwzer is a good option for you.
» Houwzer: Is it truly a smart choice to choose them? Read the comprehensive review to know more!
Houwzer is a low-commission real estate brokerage based in Philadelphia, PA. They are a certified B Corporation that is committed to solving social and environmental problems.
- Versatile Add-On Features: They offer good add-on features like virtual tours, high-definition photography, and closing assistance.
- Cash Advantage: Houwzer empowers buyers to make a cash offer on a house using Houwzer’s funds. The buyers should be pre-approved by Houwzer Mortgage to avail of the cash advantage option.
We found some drawbacks of Howzer real estate during our research.
- No Personalized Support: Due to high customer volume Houwzer agents might not give personalized attention to every customer.
- Not for Low-Priced Homes: Houwzer is only ideal for houses that are valued at a million or above.
Houwzer has an average rating of 4 out of 5 stars from 43 reviews on Yelp.
» Houwzer Reviews: Check out the customer reviews before making your decision.
Houwzer was launched in Philadelphia, PA in 2014. As compared to the traditional commission rates the 1% they offer is a good deal.
However, the commission rate is only ideal if your home value is a million or above. If you opt for them anything less than that it will be like shooting yourself in the foot.
9. Redefy
IN-HOUSE SUPPORT
Redefy
- Listing Fee: $3,500 flat fee
- In-person support
- 4.5/5
(37 reviews)
Redefy offers its services for a flat rate or commission based on your home sale price.
- Full Service: Redefy charges a flat rate of $5,500. When a house is sold for more than $1 million, 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: This flat rate option is a good bargain if your home value is below one million.
- In-House Support: You are provided in-house support with accurate pricing and features like home staging.
- Mortgage Calculator: Redefy’s Mortgage Calculator allows you to estimate your overall mortgage, including 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 attending to a large volume of customers. This can hamper the service quality.
Redefy has a rating of 4.5 out of 5 stars from 37 reviews on Yelp.
» Redefy Reviews: Check out the customer reviews for Redefy on Yelp.
Redefy offers its services based on your home value. If your house is rated anything below a million you get a flat rate fee of $3,500.
However, their agent quality lacks personalization and customer support. You are also required to pay a non-refundable deposit of $500.
10. Prevu
RESTRICTED COVERAGE
Prevu
- Listing Fee: 1.5% of sale price
- Restricted coverage
- 5/5
(456 reviews
)
5/5
(456 reviewsPrevu offers a single package with all the start-to-end services you require during your sale.
- Full Service – 1.5% Commission: Prevu charges a lower commission of 1.5% of the sale price for selling a house. It includes various features like home valuation, 3D virtual tours, open houses, professional photographs, listing on MLS, and social ad campaigns.
Prevu Coverage: Prevu is available in New York, Massachusetts, Connecticut, California, Pennsylvania, and Washington.
👉 Our Take: We do not recommend Prevu real estate to most home sellers and buyers. It only helps in substantial savings if you’re buying a house priced above $750,000.
» Prevu Reviews: Is it really a good idea to choose them? To learn more, read the entire review!
Prevu is a full-service low commission brokerage based in New York that aims to change the old-school ways of the real estate market.
- Mortgage & Closing Costs Calculator: You can get an estimate of your mortgage and closing costs by using Prevu’s Calculator. The closing cost feature is only for NYC sellers.
- Buyer Rebate: Buyers who purchase a house with Prevu get two-thirds of the commission that Prevu receives from the seller.
- Smart Buyer Platform: Prevu’s technology allows buyers to search for homes, communicate with their agents online, schedule showings, and make an offer.
» How does Prevu work? Check this out to learn more about their functioning.
Here are some negatives of Prevu you should know about.
- Inconsistent Agent Quality: Prevu has limited and inconsistent agent matching, which compromises the quality.
- Variable Listing Fee: The listing fee varies as per your location, which could burn a hole in your pocket.
Prevu has a stellar rating of 5 out of 5 from 456 reviews on Google.
» Prevu Real Estate Reviews: Check out our in-depth reviews on Prevu.
Prevu is a full-service real estate brokerage based in New York. They offer their services for a 1.5% commission.
They take on a large volume of clients to compensate for the low commission. Hence, you will be competing with a crowd of customers for your agent’s attention.
What are Low Commission Real Estate Agents?
Low commission real estate agents provide services similar to a traditional real estate agent, but with a lower commission rate between 1-2%.
Average savings vary based on the type of low commission agent or company you choose. It can be anywhere around 1% to 1.5%.
Types of Low Commission Real Estate Agents
Real estate agents with low commission are divided according to their levels of service offered.
- Flat Fee Real Estate Brokers: They list your home on the MLS for a flat fee. Your listings get syndicated to over a hundred websites including Zillow and Trulia.
- Virtual Full-Service Agents: They offer services similar to traditional real estate agents but 100% online. All services including price negotiation and contract preparation are at no additional cost.
- Flat Rate Low Commission Agents: The agent will sell your home for a flat fee. There is no commission percent in this case.
» Discount Real Estate Brokers: America’s Best Discount Real Estate Brokers in 2023.
How Do I Choose a Low Commission Real Estate Agent?
Finding the right real estate agent is crucial in your selling process. Here are a few pointers to help choose the perfect low commission real estate agent:
- Less Commission: Look for listing agents charging a commission of less than 2%. Compare agents based on commission and services provided.
- Technology: Choose companies with cutting-edge technology, optional online paperwork, and mobile app.
- Cross Verify: Check customer reviews, this step helps understand the kind of service you might receive.
- Finalize the one that understands your real estate goals!
How Do Low Commission Real Estate Companies Save Money?
Low commission real estate companies work by negotiating with no-fee realtors. These realtors handle multiple sellers at the same time, which helps recover the seller’s commission difference.
Other traditional brokerages have agents that work in-house and exclusively for them. Also, such brokerages have a streamlined sale process due to which they can save even after providing low commission services.
How Much Can I Save With a Low Cost Realtor?
For instance, if you are trying to sell your home for $500,000, the savings you get from opting for a low commission agent is as below:
| Traditional Agent (2.5% commission) | Discount (1% commission) | Discount (1.5% commission) | Discount (2% commission) | |
|---|---|---|---|---|
| Seller's Agent | ||||
| Buyer's Agent | ||||
| Total | ||||
| Savings |
✅ Pros of Low Cost Realtors
- Savings: A low cost realtor will help you save some of the commission fees. They streamline the process and make different stages of the sale easier to navigate.
- ⚠️ Are you a Real Estate Investor? A deal between investors and low commission agents is beneficial to both sides. You can pull in more deals and get better profits without worrying about listing on the MLS.
❌ Cons of Low Cost Realtors
- Net Procees Might be Low: A virtual low cost realtor won’t be present at the time of closing. Without help to negotiate, you may not get your asking price.
- Poor Selling Experience: Low commission agents juggle multiple clients at once to make up for the reduced commission rate. They rarely keep in touch after the contract is signed, so the sale may not even happen.
- Dual Agency Issues: Dual agency is where a real estate agent acts as both a seller’s and buyer’s representative. The incentive to double-end the deal increases when the agent is making so little money from the sale in the first place.
Alternatives to Low Commission Real Estate Agents
Here are some options if you do not want to opt for a low cost realtor:
- Flat Fee MLS Companies: These are companies that 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.
- Sell For Sale By Owner: Popularly known as FSBO, you are basically selling your house by yourself. You will save 100% on the listing agent commission. If you have good resources you can complete the entire process by yourself.
- We Buy Houses For Cash Companies: Cash companies buy your property below market value, flip it, and sell it at a profit. If you want a quick sale, then they are the way to go as the sale will go through in under a month.
- iBuyers: They are instant buyers that provide full cash offers and technologically advanced platforms. In essence, you can close within a matter of a few days.
- Traditional Real Estate Agents: They provide A to Z assistance, from listing to closing, for a commission rate. These agents offer a comprehensive range of services but their average commission is usually 3% or above.
Final Note
Among low commission agents/companies, pick a Realtor that provides maximum services at a minimal price. The traditional real estate commissions are declining. Hence real estate agents with low commission are the way to go.
However you should consider selling your house with a Flat Fee MLS company like Houzeo. They provide maximum exposure and you can save on commissions altogether.
» Houzeo Reviews: 7 things you must know before listing your house with Houzeo.
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.
» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why it is one of the best FSBO sites in America.
Frequently Asked Questions
1. How to find low commission real estate agents near me?
Not all the low commission real estate agents and companies have the same coverage. So pick those with nationwide coverage or extensive local coverage to get the best commission deal.
2. Should you really go with low commission realtors?
You can certainly go with low commission Realtors as they offer services at a rate lower than traditional real estate agents. Some of the low commission real estate agents or companies like Houzeo and Ideal Agent provide ample services at reduced rates thereby making them a top choice for sellers.
3. Which real estate company charges the least commission?
There are multiple low commission real estate agents and companies out there that provide good services. Low commission real estate companies like Houzeo, Redfin, and Ideal Agent top the charts. Low cost Realtors like Houwzer can be a good bet for high valued homes. Also, a good low commission real estate brokerage may not be available in all the states thus making it difficult to go with a single Realtor.
4. Are real estate fees or commission negotiable?
Real estate commissions are negotiable and legal. With increasing competition and better alternatives, real estate agents are willing to lower their commission and provide concessions to the home seller. The Department of Justice promotes active competition between the real estate agents by giving consumer rebates and compromised commissions.
5. What is the lowest commission a realtor will take?
Low commission realtors charge listing fees of 1-2% or an upfront flat fee. A typical realtor commission oscillates between 5-6% of the final sale price.
6. What is the Average Real Estate Commission?
The average real estate agent commission is 2.5% to 3% of the sale price. You have to pay the commission to both the listing agent and buyer agent. So, the standard commission rate across the country is between 5% and 6%.
7. Are Low Commission Real Estate Agents Reputable?
Yes, low commission real estate agents are reputable. These low-fee agents are traditional realtors who offer their services at a lower cost.
As real estate agents, they have to complete licensing and training requirements. It does not matter if they are traditional or cheap realtors, adherence to the NAR Code of Ethics is an absolute must.
Find the Best Low Commission Realtors Near Me
Resources for FSBO Sellers
| # | Resources | Description |
| 1. | Best Time to Sell a House | Knowing when to sell to get maximum profits is essentially the first step. Pick the right market to get more offers. |
| 2. | MLS Listing | MLS is the local database used for listing a property on sale. It can be accessed and used only by licensed real estate agents. Your property has to be listed on the MLS to be viewed by buyer agents. |
| 3. | Seller’s Disclosure | It is a statement in standard checklist form that contains defects and features of your property. The disclosure rules are complicated and sometimes vary from state to state. |
| 4. | FSBO Contract | It is the contract which contains the terms of the sale and binds the buyer and the seller in agreement once signed. It is usually carried out with the help of a real estate agent, but it perfectly legal to write one yourself. |
| 5. | Paperwork for Selling Without a Realtor | Selling a house is a process that requires a lot of confirmations and paperwork. When you venture into this without a realtor it is necessary to know all the documents you are going to require. |
| 6. | Closing Costs | They are the set of expenses that the seller and buyer pay to finalize the real estate transaction and transfer the house ownership. It is separate closing costs for sellers and for buyers. |
Also Read
- Title Insurance Rates: Title insurance helps safeguards the interest of the homeowner. Find out the cost of Title Insurance.
- Home Inspector: Discover everything you need to know about home inspectors.
- Real Estate Housing Market: The housing market refers to properties bought and sold directly to buyers or through real estate brokers.
- Seller Closing Cost Calculator: Closing costs can sometimes be confusing, this calculator will help to find an accurate rate of closing costs for sellers.
- Top Real Estate Websites: Check out the top real estate websites in the US.
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