Will You Save Money With Low Commission Real Estate Companies?
Can you save money on your home sale by using low-commission real estate companies? It depends on the agent’s skill, experience, and commitment.
When selling your home, you want to maximize your profit. For some homeowners, traditional real estate agent commissions can feel steep. That’s why low-commission real estate companies are growing in popularity, offering services at reduced rates.
But will you actually save money with a discount service, or are there hidden trade-offs?
Whether you’re exploring ways to cut costs or simply curious about your options, this guide will help you make a more informed decision.
Find an Agent Worth Their Commission
We’ll connect you with three top local agents proven to deliver amazing results for their clients. You won’t regret a dime spent!
What are low-commission real estate companies?
Low-commission real estate companies help homeowners sell their property while charging reduced commission fees. Unlike traditional listing agents, who typically charge about 3% of the home’s sale price, these companies offer savings by lowering commission rates, often between 1% and 3%.
Based on their model, these companies may provide full-service representation, streamlined services, or limited support. Some match you with local agents who agree to discounted rates, while others operate with in-house teams to reduce costs.
How do low-commission real estate companies work?
Low-commission companies typically function in one of two ways:
1. Referral networks: Some low-commission companies connect you with traditional agents who agree to discounted rates. You work with a local agent, but the commission fee is pre-negotiated and lower than the standard.
2. Flat-fee or salaried models: There are also real estate companies that employ salaried agents or charge a flat fee for services. These models reduce overhead and allow them to pass savings on to you.
Services offered can range from listing your home on the multiple listing service (MLS) to providing full-service support, such as marketing, negotiations, and closing assistance. However, the level of service can vary. Before you sign an agreement with a low-commission real estate company, be certain you fully understand what’s included.
