Table of content
- Are commissions necessary in real estate?
- Can I pay lower than the stipulated commission rates?
- What is the stipulated average real estate commission?
- Top 7 real estate companies with the lowest commission
- Rounding up
Lowest real estate commission fees. When selling in real estate, having a low commission agent is a great way to save money. There are several low-cost agencies providing a similar type of top-notch service to what a traditional realtor would.
If you have been looking for one of these realtor agencies, then you are in luck!
This article will look at the lowest real estate commission fee companies with the best real estate commissions, in no particular order. After countless hours of research, we found that these companies strike the right balance between value and savings for customers.
Before we get to the list, let’s provide some clarity and shed some light on a few commonly asked commissions questions.
Of course not. Commissions are optional because realtors are optional. However, most would agree that buying or selling a home isn’t such an easy feat. Asides from the payment process, there is also a lot of paperwork that goes into the process. This is why it is advisable to go through real estate agents, who charge a fee for their involvement in closing the deal.
Yes, you can.
In most cases, the rates lie between 2.5 and 3%. However, some realtors charge less than the usual average. In most cases, these rates are negotiable.
In real estate, the commission is split evenly between the listing agent and the buying agent, according to the 2020 housing market report by RealTrends. The average real estate commission rate in the US is 4.94%. This puts the average at about 2.4. However, these numbers vary depending on each location. Many parts of the US work with a 6% realtor percentage evenly split between both parties.
Now that we have some understanding let’s jump in!
Clever Real Estate
Clever is a 100% free service that matches you to top-rated local agents around the country. Whether you are selling or buying a home, clever has got you covered. That’s not all, clever also pre-negotiates on your behalf.
Clever partners with full-service brands and brokerages nationwide, helping people save more than $750 million in commissions.
Clever offers full-service support for a flat rate of $3,000 or 1% for property worth more than $350,000.
Clever also offers you a free home valuation with no strings attached. They have an experienced support team made up of fully licensed real estate experts. The team leverages tech to provide quick results.
With a straightforward user interface, Clever eases the process of finding local agents. To get started, you need to answer a few questions online about your property. Subsequently, a team member will reach out and connect you to a realtor based on your preferences.
A significant part of what Clever does is that it allows you to interview as many agents as possible. You are not obliged to work with their recommendations. You can call the Clever 7 days a week and have someone answer.
However, If you are looking to only work with agents from a specific real estate brokerage, then Clever may be limiting.
Launched in 2014, Houwzer is described (on the company website) as a “modern, socially responsible real estate and mortgage broker for savvy homeowners”.
They have a team that strongly relies on technology to meet customer needs. With Houwzer, you can get all the support that you need to sell your home at a flat fee of $5000.
For the team, Houwzer agents are focused on finding the best homes for you, instead of selfishly focusing on their commissions. The company’s big vision is to become the best real estate company in the world. They also hope to support communities by enriching the lives of agents and clients. Houwzer gives back to its community through its non-profit; RiseUp fund.
In2016, the company was recognized for using the power of business to solve social and environmental issues. Subsequently, they became a certified B corporation. This is a testimony of the company’s impact on its employees, supplies, community, and the environment.
Houwzer has saved its clients more than $17 million in listing commissions, helping home sellers save an average of $15,000.
The company also takes pride in how it cares for its agents. Each Houwzer agent earns a competitive base salary and performance bonuses. Furthermore, they have access to certain health and social benefits. This, they say, is a great incentive that has helped Houwzer agents stay dedicated.
On the company website, they offer a free consultation for anyone that is interested in selling, buying, mortgage, or refinancing.
Redfin is another low commission real estate agency promising to “help clients sell for more than the home next door”. In 2019 alone, Real trends reported that Redfin managed more than $30billion worth of real estate transactions.
Redfin agents leverage powerful technology to get clients into their right homes for the best price. When you buy or sell with redfin, you only pay a 1% listing fee.
This is a great deal to get access to the thousands of homes available on the company’s website; where it flaunts the title of the #1 nationwide brokerage website.
Another reason to choose redfin is that you get access to local agents that understand how to get you the best offer based on market knowledge. Your local agent is your guide and ensures a smooth process from pricing to closing.
Sellers that use this brand have the opportunity to reach 4x as many people. This is a result of the company’s focus on digital marketing campaigns (mostly email marketing and social media).
Redfin also provides support in terms of pricing, negotiation, photography, virtual tours, and 3D walkthroughs, to name a few.
The company is present in the US and Canada.
REX Real Estate
REX was created in 2015 to leverage AI and big data to make residential real estate processes easier. The company does this with data modeling and machine learning to accurately and speedily match buyers and sellers of real estate.
REX offers expertise in buying, selling, mortgages, and insurance, making it a one-stop-shop. Also, the company does not post homes on Multiple listing services. Instead, REX focuses on digital ads to market directly to potential homeowners online. This strategy is aimed at reaching buyers without agents which is how they also provide one of the lowest real estate commission fee solutions.
REX promises speed and the possibility of finding a home and having your offer accepted on the same day. The brand also offers a unique commission refund for users who want to purchase homes not listed with REX.
REX real estate provides more in-person support than many other low-commission brokerages. They also offer complimentary Handyman services (in partnership with Porch) to help you move in quickly.
As part of its social mission, REX builds for the homeless. With a pledge to contribute one home for every 50 homes sold, the company assists the needy.
Although REX real estate does a great job of setting itself apart with unique service offerings, the downside is the level of risk involved in running its business model. By focusing only on buyers without realtors, REX may miss out on a significant number of buyers.
Therefore, it is vital to understand the risks involved before going with this broker.
Redefy is one of the best low commissions brokerages in the country. The agency works with a flat fee of $3500 for homes below $1 million, While homes above the million-dollar mark go for 1% listing providing one of the lowest real estate commission fee services.
With more than 570 houses sold and $5.33million saved in 2019, Redefy can do a lot for you. Redefy’s flat fee covers the cost of in-home consultation, photography, yard signs, lockboxes, scheduling, and marketing.
Anyone that contacts Redefy can get a free home valuation. Furthermore, you can calculate how much you are saving on the go with the Redefy website. Whether you are selling or buying with Redefy, you can trust their professional brokers.
A significant downside is the non-refundable $500 upfront payment that is required. However, Depending on your price point, you can have substantial savings with Redefy. You can also gain guidance on contracts, negotiations, inspections, and so on.
Redefy is an excellent option if your home is in a hot market that boasts a high value. However, customer experiences may differ because the brand operates on a franchise model, and each office operates independently.
Homie is a low commission real estate broker with a flat listing fee of $3000 or less. The company was founded to simplify the process of real estate through technology.
Homie offers a flat listing fee that can serve as a significant advantage for a higher-priced property.
Since Launching in Utah in 2015, the real estate company has been a part of real estate deals totaling more than $3billion.
Homie offers loan plans that make it easy for you to apply online in 3 easy steps. The company promises a reward of $500 for anyone that can find interest rates better than theirs. Furthermore, you can access Homie loans whether or not you are buying with Homie real estate.
Unlike some of their competitors that walk into buildings to evaluate before pricing, Homie agents work with your description, market data, and public records to create an estimate. This may lead to cases of overlooking unique features that can improve your home’s value. Subsequently, this leads to mispricing and may cause you to incur losses.
Although Utah remains its primary market, Homie has moved into additional states such as; Arizona, Colorado, Idaho, and Nevada.
Like other low commission brokerages, Homie agents often have to juggle more customers than traditional brokerages (up to 10x more).
Looking for realtors who offer you 1% listing cost when you sell and a $5000 closing cost when you buy?
Well, SimpleShowing probably offers you the closest thing to a traditional realtor. The brand offers full services representation and makes your sale easier and faster for less than half the typical 3% giving you one of the lowest real estate commission fee offerings.
The company has a customer-centric model that focuses on helping people find homes online. With a search button that has been integrated into your local listing service, SimpleShowing always has all the listings currently on the market. This means more access for you to view all kinds of property right when they are listed.
Also, with an easy-to-use app, simple showing provides a number of great features for you. SimpleShowing is also a tech-powered brokerage that hopes to reduce the customer’s work in the process and buying and selling real estate.
Apart from realtor percentages, there are several other factors to look out for before choosing a real estate agency. No realtor company is perfect in all cases; it all depends on the variables involved. You should always consider your unique situation before deciding on a real estate agency.
The key is to take time doing your research and stay patient throughout the selection process so that you can be sure to end up with agency best suited for you!