The average Realtor commission is 5.46%. With a traditional real estate agent, you have to pay a fee as high as 6%. This fee is split equally between the seller agent and the buyer agent. A discount broker can reduce this to just 4.5%.
But thereâs a way to save your hard-earned money. A 4.5 percent commission Realtor offers you the same services as a traditional broker but at a discounted rate.
You can lower this fee with Houzeoâs Platinum package. You can also manage your showings and offers 100% online.
Rankings: Best 4.5% (or less) Commission Companies
| Company Name | Listing Fee | Max Savings | 100% Online | 5-Star Reviews* |
|---|---|---|---|---|
| Houzeo | $499 Flat Fee | â | â | â |
| SimpleShowing | 1% Commission | â | â | â |
| Prevu | 1.5% Commission | â | â | â |
| Redfin | 1.5% Commission | â | â | â |
| Ideal Agent | 2% Commission | â | â | â |
Reviews: Best 4.5% (or less) Commission Companies
1. Houzeo
#1 Discount Real Estate Service
Listing Fee: $399+$350 at closing4.9/5
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.
đ 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 donât 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: Houzeoâs 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:Â With over 10,000+ happy customers, Houzeo is the most trusted discount real estate broker.
Houzeo is a Flat Fee MLS listing service that lets you sell your home without any agent commission. It offers the best combination of maximum savings, advanced technology, 5-star customer support, and listing exposure.
Houzeoâs Bronze package is priced at $399. The Silver package is priced at $399 + 0.5% (minimum $999) , and the Gold package is priced at $429 + 0.5% (minimum $999) at closing. The full-service Platinum package is priced at $499 + 1% (minimum $999) at closing.
2. Simple Showing
1% COMMISSION
Commission: 1% of Sale Price4.9/5
SimpleShowing is a licensed full-service brokerage in Florida, Georgia, and Texas. They offer the following packages:
For Homesellers:
- 1% Listing Fee:Â 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:Â 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.
đ 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.
Hereâs 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 donât 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.
SimpleShowing is headquartered in Atlanta. It is a licensed broker in Georgia, Florida, and Texas. Its 1% listing fee gets you a home valuation, professional photos, and paperwork assistance.
SimpleShowing has a 5-star rating on Zillow. Its team of experienced local agents helps you manage your real estate transaction from listing your house to closing.
3. Prevu
Lower Commission
Listing Fee: 1.5% of Sale Price5/5
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.
đ 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:Â Prevu serves 13 states and Washington D.C. focusing on metro areas and suburbs.
- Not Ideal for High-Value Homes: Prevuâs 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.
Prevu Real Estate is a licensed brokerage located in New York. It has highly qualified agents and over 500 positive reviews on Google.
However, Prevu has a small team of agents who deal with many clients. This may limit your ability to select an agent of your choice.
4. Redfin
BEST TECH-ENABLED BROKERAGE
Listing Fee: 1% of Sale Price4.2/5
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.
đ Our Take:Â 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:Â 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!
Redfin was headquartered in Seattle in 2002 by Mr. David Eraker. It covers 80+ markets in the US. They have an operating business license in New York as Redfin Real Estate.
It provides an elaborate listing agreement with a marketing plan for your home. However, some customers have expressed concerns about the agentâs professionalism.
5. Ideal Agent
Agent Matching Service
Listing Fee: 2% of Sale Price5/5
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.
đ Our Take: The 2% listing fee is competitive, however, the buyerâs 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.
Itâs important to be aware of these potential drawbacks:
- Limited Savings: Despite the reduced listing commission, the total commission cost isnât 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?
Ideal Agent is an agent-matching service headquartered in Florida. The company connects sellers and buyers with partner agents in its network.
These agents pre-negotiate their commission with Ideal Agent. You will have to pay a 2% commission, from which the broker pays 25% to the company as a referral fee.
How to Choose a 4.5% Commission Realtor?
Here are some of the factors to consider while choosing a 4.5% commission Realtor:
- Pricing: Most discount brokerages charge a minimum fee or a 4.5% commission, depending on your homeâs value. Ensure that this minimum fee doesnât take away the lionâs share of the profits from your home sale.
- Technology: Opt for a company that uses cutting-edge technology. It should have a user-friendly website and an advanced tech stack. A Realtor who leverages technology for marketing, data analysis, and document management can offer a more efficient service.
- Quality of Services: Interview multiple brokers from different companies to understand who offers the best services. Check agent reviews on platforms like Zillow and Realtor.com.
How Does a 4.5% Real Estate Commission Work?
Companies that provide a 4.5% real estate commission offer listing fee reductions.
In a traditional real estate transaction, you will generally pay up to 6% real estate agent commission. This commission is shared in half between your listing agent and the buyer’s agent.
Remember, the discount is on the listing fee. Therefore, instead of 3%, your listing agent will list your home for a pre-negotiated fee of 1.5%. The reduced fee can easily save you thousands in commissions.
How Much Can You Save With a 4.5% Commission Realtor?
Working with a 4.5% commission realtor can save you a significant amount of money compared to the traditional 6% commission rate. Here’s a breakdown of the savings:
| Selling Price | 4.5% Realtor Commission | 6% Realtor Commission | Total Savings |
|---|---|---|---|
| $200,000 | $9,000 | $12,000 | $3,000 |
| $500,000 | $22,500 | $30,000 | $7,500 |
| $750,000 | $33,750 | $45,000 | $11,250 |
Alternatives to Paying a 4.5% Real Estate Commission
- Flat Fee MLS: Flat Fee MLS companies charge a standard rate to list your home on multiple listing services (MLS), an online database of homes in your region. The fee is usually set between $179 – $399.
- Sell to an iBuyer: Many iBuyers, like Opendoor and Offerpad, purchase hundreds of homes across U.S. markets. iBuyers can be a great option if youâre wondering how to sell your house fast.
- Sell to Cash Home Buyers: Individual cash home buyers and companies that buy houses for cash in the U.S. make all-cash offers, usually within 24 to 48 hours. Cash buyers let you skip the hassle of listing on the MLS, inspection, appraisal, etc.
- Traditional Realtors: If you need maximum hand-holding, we recommend hiring a full-service in-person Realtor or broker. Youâll get all the professional help you need but wonât save much on real estate agent commission, likely paying a full 5% to 6%.
Final Word
A 4.5 percent real estate commission will help you save thousands. Make sure you speak to agents offering such discounts before choosing one. Compare fees, services, and experience to find someone who fits your requirements and budget.
With Houzeo, you can get your home on the MLS for a small flat fee. You get access to cutting-edge tools like offers dashboard, showings management, and many more to make your selling journey easy.
Frequently Asked Questions
What commission do most Realtors charge?
The average real estate commission is 6% of a home's sell price. This is split between the buyer's agent and the seller's agent.
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.
Who pays Realtor fees?
It is standard practice for the seller to pay the Realtor fees of both the listing agent and the buyer agent.
