What Is a 4.5% Real Estate Commission?

Houzeo is a top technology-driven real estate platform. It offers 4 different packages:

• Bronze Package ($399 + $350 at Close): List your house for 6 months. You can upload 24 house photos.
• Silver Package ($399+0.5% at Close): List your home for 6 months and post maximum photos. Unlimited open houses and listing modifications are included in this package.
• Gold Package ($429+0.5% at Close): This package offers all the benefits of the Silver package, as well as licensed broker assistance, contract review, and more.
• Platinum Package ($449+1% at Close): This package offers virtual full-service support with a licensed broker. You can list for 12 months. Brokers assist you in negotiations, disclosures, and closing.

👉 Our Take: We recommend Houzeo to all home sellers. The company has an excellent customer rating of 4.9 out of 5 stars. It has extensive coverage across 47 states + DC, a feat achieved by only a handful of other services.

» Houzeo Reviews: Houzeo is 100% online. You can finish listing formalities within 60 minutes.

These are the key features that make Houzeo one of the top discount real estate brokers:

• Significant Commission Savings: You will pay just a small flat fee to list on the MLS. On average, home sellers who used Houzeo saved $12,511.
• No Hidden Fees: All costs are disclosed upfront so you don’t have to worry about hidden charges.
• Near Nationwide Coverage: Houzeo operates in 47 states and DC, with ongoing plans for expansion.
• Max Exposure: Houzeo packages give you access to renowned MLS companies.
• Advanced Technology: Eliminate the hassle of extensive paperwork. E-signature and online forms make house listing quick and easy.
• 5-star Customer Service: Dedicated customer support addresses your every concern easily.
• Mobile App: Houzeo’s mobile app lets you manage showing requests from verified buyers and buyer agents. You can either accept, reject, or reschedule showings at your convenience.
• Home Value Estimator: Houzeo’s Home Worth Estimator is online and quick to know the FMV of your home. It provides free home value estimate within 30 seconds.

There are no dealbreakers with Houzeo.

» Houzeo Reviews: Houzeo is rated “Excellent” by 10,000+ happy customers on Google Reviews and Trustpilot!

Houzeo Reviews: With over 10,000+ happy customers, Houzeo is the most trusted discount real estate broker.

SimpleShowing is a licensed full-service brokerage in Florida, Georgia, and Texas. They offer the following packages:

For Homesellers:

• 1% Listing Fee: This package includes full-service support, with licensed agents handling all aspects of the sale. They also provide marketing, home showings, and negotiations to finalize the sale.

For Homebuyers:

• $5,000+ Towards Closing Costs: This package includes full-service support. Licensed agents will handle all aspects of the sale, including marketing, home showings, and negotiations to finalize the sale.

👉 Our Take:  SimpleShowing is a good option if you are selling a high-end home. However, its $5,000 minimum listing commission makes it more expensive for lower-priced homes than other brokers.

Here’s what stands out about SimpleShowing:

• Market Exposure: Homes are listed on the MLS and various national websites, including Realtor.com, Zillow, Trulia, etc.
• No Upfront Costs: The listing fee is only paid at closing, deducted from the sale profit.
• Professional Guidance: Offers pre-listing consultation, ongoing support, and contract assistance throughout the selling process.
• In-House Photography: They have an in-house professional photographer to get the best photos and videos of the home for the MLS.

SimpleShowing has the following downsides:

• Minimum fees: Homes under $500,000 don’t benefit from the 1% listing fee because of a minimum commission fee requirement of $5,000.
• Limited Agents: They are a small team so you do not get to choose or change the agent in case of disputes.
• Limited Coverage: They have agents only in 8 cities: Miami, Dallas, Atlanta, Orlando, Tampa, Savannah, Fort Lauderdale, and Fort Worth.

SimpleShowing has 4.9 out of 5 stars on Google from over 110 reviews.

Prevu is a reliable discount real estate agent service. It offers full service to sellers, like a traditional broker.

• 1.5% Commission: Prevu charges a fixed 1.5% commission on the total home sale value. It includes features like home valuation, professional photographs, closing assistance, etc.

👉 Our Take: Prevu offers services from listing your home to its closing. It charges you a non-negotiable commission of 1.5% of the home sale value. However, it could cost you more in commission for a high-value house.

Based on our research, the benefits of Prevu are:

• Advanced Marketing: It includes home valuation, 3D virtual tours, open houses, professional photographs, listing on MLS, and social ad campaigns.
• Market Exposure: Your listing will be displayed on sites like Realtor.com, Zillow, Trulia, etc.
• Closing Costs Calculator: You can get an estimate of their closing costs.

Here are some limitations we found with Prevu:

• Limited Coverage: Prevu serves 13 states and Washington D.C. focusing on metro areas and suburbs.
• Not Ideal for High-Value Homes: Prevu’s model might not be ideal for luxury homes. For example, selling a house worth $500,000 would still mean paying $7,500 in commission.
• Variable Listing Fee: The listing fee with Prevu can vary based on your location, which may result in higher costs depending on the market.
• Mobile App: The company does not provide any mobile application service to its users.

Prevu has a stellar rating of 5 out of 5 on Google.

» Prevu Reviews: Is it a good idea to choose them? Read the comprehensive review to learn more.

Redfin does not disclose its pricing on its website. Sellers will have to pay common closing costs.

• It offers 0.5% buyer’s rebate. To avail this, you’ll have to buy and sell with them.

👉 Our Take: Redfin offers 1 rebate option but with a strict clause. While, other real estate companies are willing to offer a higher rebate.

» Redfin Reviews: The reality of the buyer’s rebate.

Here are some advantages of choosing Redfin:

• Advanced Technology: With 3D walkthroughs and 40+ filters to narrow down your search, the Redfin app makes it easy to find the right home from anywhere.
• Paired With Local Agents: Local agents know their market better. This can help you secure a good deal.
• Home Tour: You can see updated listings every 5 minutes on their website. You can also schedule a home tour for the same day.
• Nationwide Coverage: Redfin covers 80+ markets in the US.

Here are some limitations we found with Redfin.

• Strict Rebate Criteria: Clients who sell and buy with Redfin within one year get a rebate of 0.5%.
• No Freedom in Agent Selection: You get an agent assigned automatically without having a 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.
• Poor Customer Reviews: Customers have complained that agents are often unreachable and unprofessional.

Redfin has an average rating of  4.3 out of 5 stars from 60+ reviews on Google.

» Redfin Reviews: The Reality of the 1% Fees, Pros, Cons, and Alternatives!

Ideal Agent is an agent matching company. It offers a single listing package for sellers:

• 2% Commission: Ideal Agent charges a 2% commission to the listing agent, which is lower than traditional rates (typically 2.5 – 3%). On an average home price of $400,000, you will be charged $8,000.

👉 Our Take: The 2% listing fee is competitive, however, the buyer’s agent still gets a 2.5 – 3% commission, bringing the total commission to around 4.5 – 5%. The savings are notable but not as significant as flat-fee brokers.

Ideal Agent stands out with several attractive offerings:

• Top Agents: The platform only works with experienced agents from major brokerages like Keller Williams Realty and RE/MAX.
• National Network: Coverage extends across the U.S., making it a versatile option for sellers nationwide.

It’s important to be aware of these potential drawbacks:

• Limited Savings: Despite the reduced listing commission, the total commission cost isn’t drastically different from standard agents.
• Agent Pool: In less populated areas there may be fewer agents to choose from, limiting flexibility.

Ideal Agent has a rating of 5 out of 5 on Trustpilot.

» Ideal Agent Reviews: Does Ideal Agent benefit you in the 2024 market?