Selling a house could be an overwhelming journey for many. A traditional agent can make the process simpler for you, but the convenience comes at a cost. They usually charge a commission of 3%. Add to that the commission charged by the buyer’s agent. All this cumulates to thousands of dollars, eating away your potential profit from the home sale.
Working with low-commission real estate agents is a great way to save money when selling a home. But not all low-commission real estate agents are the same. Hence, it is important to evaluate how these people/companies are offering savings – are they offering genuine discounts or are they cutting corners?
Take a look at our picks for the top real estate agents who provide services at a discounted rate.
1. Clever Real Estate
Clever Real Estate is an affordable full-service discount brokerage. It charges a listing fee of just 1%, which is among the lowest of any full-service real estate company.
It is a free service that matches sellers with top-rated brokers and pre-negotiates savings on their behalf. The company partners with full-service agents across the US including reputed brands such as Berkshire Hathaway and Keller Williams.
All its partner brokers offer the same experience one can expect from a traditional broker – but you will end up saving significantly.
There is no compulsion to work with the agent you have been matched with. Sellers may interview as many brokers as they like until they find the right fit. If not, they may walk away at any time.
However, if you want to work with brokers from a particular brokerage, then your options may get limited. Also, while the agents assure full service, they might not offer premium upgrades such as home staging or drone photography without charging extra. You can check Clever Real Estate reviews to know more about them.
This is also one of the top low commission real estate agents. It charges a commission of 1.5% for listing your house and 1% if you buy with a Redfin broker too.
Like traditional brokerages, Redfin has its own team of brokers. But, its realtors manage 3X as many clients as typical realtors. Selling a higher quantity of homes with fewer brokers allows the company to turn a profit.
For effective management of the workload, the company divides responsibilities between different members of the team. This implies, that no single agent will be responsible for the sale from start to finish.
While this team-based model leads to higher efficiency, it is not risk-free. Negative Redfin reviews consistently point towards communication issues and avoidable mistakes that lead to a frustrating experience.
Houwzer is a real estate firm that charges a flat listing fee of $5,000 in specific areas on the East Coast. Companies such as Houwzer as flat-fee real estate brokers as they levy the same fee on every customer rather than basing their commission on the sale price.
For instance, if your home sells for $1 million, you will save $25,000 on the listing fee versus what you will pay as per the standard 3% commission rate.
Houwzer also uses a team-based model to sell more houses. Its agents also handle around 3X as many clients as the agents at regular brokerages.
You will get virtual home tours and some premium marketing services at no extra cost.
But, similar to Redfin’s complaints, negative reviews about Houwzer also complain that the team-based approach raises the chances of mistakes, especially when the selling situation is complex.
Also, if you are selling a low-priced home, the savings could be marginal.
4. Ideal Agent
Ideal Agent helps sellers connect with a qualified full-service agent in your location and also pre-negotiates a 2% listing fee.
Unlike some other agent matching services, this company is very selective about the agents it partners with. Hence, you can be assured of being matched with only the best of the best in your areas.
Signing up for its service is free and there is no compulsion of hiring the agent you are matched with.
However, sellers only get matched with one agent, unlike other realtors who offer multiple options. Also, while its listing fee is cheaper than the traditional rate of 3%, it is costlier than its peers.
This is another flat-fee real estate service, which charges a flat listing fee of $3,500. It claims to offer “everything” you will get with a traditional broker.
However, while its self-service process is good for experience sellers who are in a rush to sell their homes, it is not the ideal choice for everyone.
The company provides fewer services and that allows them to handle 10X as many clients at once. Such a bare-bones service approach heightens the likelihood of a bad experience.
Final wordPicking a real estate agent is a huge decision. If you are not 100% sure, which method is ideal for you, try considering a low-commission real estate company for selling a home. It is a good “middle of the road” alternative, giving you the best of both worlds.