Low commission real estate agents charge 1% to 2% of your home’s sale price, compared to the traditional 2.5% to 3%. On a $400,000 home sale, this saves you $4,000 to $8,000. These agents provide similar services but operate under different business models, using technology and higher transaction volumes to maintain profitability while offering reduced fees.
Selling your home can eat into your profits fast. Agent commissions traditionally take 5% to 6% of your sale price. That’s $20,000 to $24,000 on a $400,000 home.
But you have options. Low commission real estate agents offer the same core services for 1% to 2% of your sale price. The question is: do they deliver the same results?
This guide shows you exactly what low commission agents offer, how much you’ll save, and what to watch out for before signing any agreement.
What Are Low Commission Real Estate Agents?
Low commission agents charge less than traditional agents for listing services. Where conventional agents typically charge 2.5% to 3%, these agents ask for 1% to 2% of your home’s sale price.
They’re fully licensed professionals. They meet the same requirements as traditional agents. The difference is in how they run their business, not their qualifications.
These agents often use technology to reduce overhead costs. They might handle more transactions per year. Some work for brokerages with streamlined operations that cut expenses without cutting corners.
How Real Estate Commission Rates Work Today
The real estate commission structure changed in 2024. A landmark NAR settlement decoupled buyer and seller agent fees.
Before this change, sellers typically paid both their agent and the buyer’s agent. The total ranged from 5% to 6%, split between both parties.
Now, buyers negotiate directly with their agents. Sellers typically pay only their listing agent, which ranges from 2% to 3% of the sale price.
According to HomeLight’s 2025 Top Agent Insights, 73% of agents still recommend that sellers offer buyer agent commission as a competitive strategy. This approach helps attract more buyers to your listing.
Current national average commission rates sit between 5.4% and 5.6% when both sides are covered.
How Much You’ll Save With Low Commission Agents
The savings add up quickly. Here’s what you’ll pay at different commission rates on a $400,000 home:
Traditional agent (3%): $12,000 Low commission agent (2%): $8,000 Low commission agent (1.5%): $6,000 Low commission agent (1%): $4,000
Your actual savings depend on your home’s sale price and the specific rate you negotiate.
A $600,000 home sold with a 1% agent saves you $12,000 compared to a 3% traditional rate. For a $200,000 home, the same rate difference saves $4,000.
Remember to factor in the buyer’s agent commission. If you choose not to offer this, you might receive fewer showings.
Benefits of Working With Low Commission Agents
You Keep More Money at Closing
Less commission means more cash in your pocket. On a median-priced home of $442,000, saving just 1% puts an extra $4,420 toward your next down payment.
You Still Get Professional Representation
Low commission doesn’t mean low quality. Many discount agents provide full service, including professional photography, MLS listing, marketing, and negotiation support.
These agents meet the same licensing requirements. They follow the same ethical standards set by the National Association of Realtors.
You Access Modern Technology
Many low-commission brokerages invest heavily in tech platforms. You get real-time updates, digital document signing, and online offer management.
Some provide mobile apps that let you track showings, view feedback, and communicate with your agent from anywhere.
Drawbacks of Low Commission Real Estate Agents
Service Level May Vary
Some agents reduce their fee by limiting services. They might skip open houses, provide fewer professional photos, or offer limited marketing reach.
Ask exactly what services are included before signing. Get it in writing.
High Volume Can Mean Less Attention
Low commission agents often compensate for reduced fees by handling more clients. A Las Vegas agent told HomeLight that agents operating on thin margins need more transactions to stay profitable.
This model works when market conditions favor sellers. But if your home needs extra attention, you might not get it.
Dual Agency Risks
Some low commission agents represent both buyer and seller to keep the full commission. Eight states have banned this practice because it creates conflicts of interest.
In states where it’s legal, dual agency means your agent can’t fully advocate for your interests. They must remain neutral, which weakens negotiation power.
Fewer Buyer Agents May Show Your Home
Offering a low buyer’s agent commission can backfire. When you offer 2% while neighboring homes offer 2.5% or 3%, some agents might skip your listing.
Real estate professionals in competitive markets report that commissions below 2.5% significantly reduce showing requests.
How to Find Reputable Low Commission Agents
Check Their License and Experience
Verify your agent’s license through your state’s real estate commission website. Look for at least two years of active selling experience.
Review their recent sales. How many homes have they sold in your neighborhood? What was their average sale price compared to the list price?
Read Real Customer Reviews
Check Google, Yelp, and real estate platforms for verified reviews. Look for patterns in feedback about responsiveness, communication, and results.
Pay attention to how agents handle negative reviews. Professional responses to criticism show maturity.
Review the Listing Agreement Carefully
Read every clause before signing. Verify the commission rate, duration of the agreement, cancellation terms, and included services.
Ask about additional fees for photography, staging, or marketing. Some agents advertise low rates but charge separately for services that traditional agents include.
Request References
Ask for contact information for three recent clients. Call them. Ask about their experience, the final sale price compared to the asking price, and how long the home sat on the market.
Top Low Commission Real Estate Companies
Several companies specialize in reduced-rate services:
Redfin charges 1% to 1.5% listing fees in most markets. They offer professional photography and 3D tours as standard services.
Clever Real Estate connects you with full-service agents charging 1.5% (minimum $3,000). They maintain a network of experienced local agents.
Houzeo provides flat-fee MLS listings starting at $399. You handle showings but get maximum MLS exposure.
Ideal Agent matches you with agents charging 2% listing fees. They vet agents based on experience and sales volume.
Trelora operates in select markets with 1% listing fees (minimum $3,000). They provide full service in their coverage areas.
Alternatives Worth Considering
Traditional Full-Service Agents
Experienced agents charging standard rates might deliver higher sale prices through better negotiation and marketing. HomeLight data shows top 5% agents sell homes for an average of 10% more than average agents.
On a $400,000 home, that’s $40,000 extra. Even after paying a 3% commission ($12,000), you still net $28,000 more than with a discount agent who gets you the list price.
For Sale By Owner (FSBO)
FSBO lets you skip listing agent fees entirely. But NAR data shows FSBO homes sold for a median of $380,000 in 2024, compared to $435,000 for agent-assisted sales.
You’ll handle all marketing, showings, negotiations, and paperwork yourself. This route works best for experienced sellers in hot markets.
iBuyers and Cash Buyers
Companies like Opendoor make instant offers, often closing in days. You’ll pay service fees of 5% to 8% and typically accept below-market prices.
This option suits sellers who need speed over maximum value or have properties needing significant repairs.
Getting the Best Results From Low Commission Agents
Start with clear expectations. List every service you need in writing before signing.
Ask about their marketing plan. How many photos will they take? Where will they advertise? What’s their showing availability?
Stay involved in the process. Monitor listing performance. If showings are slow after two weeks, discuss price adjustments or marketing changes.
Respond quickly to all communication. Low commission agents handle multiple clients, so your responsiveness keeps momentum.
Final Thoughts
Low Commission Real Estate Agents can save you thousands without sacrificing service quality. The key is thorough vetting before you commit.
Match the agent’s business model to your needs. If you’re selling a well-maintained home in a competitive market, a low commission agent can deliver results. If your property needs extra marketing or you’re in a slow market, paying for experience might be worth the cost.
Calculate your actual savings. Factor in both the reduced listing fee and any impact on the final sale price. Sometimes the cheapest option costs you more in the long run.
Choose based on the complete picture: commission rate, services included, agent experience, and market conditions. Your home sale deserves a strategy that maximizes your net proceeds.
FAQs
What is considered a low commission rate for real estate agents?
Any listing fee below 2% is generally considered low commission. Traditional agents charge 2.5% to 3%, so rates of 1% to 2% represent significant savings. Some flat-fee services charge as little as $399 to $999 total instead of a percentage.
Do low commission agents provide the same services as traditional agents?
It varies by agent and brokerage. Some provide full service at reduced rates by using technology and handling higher transaction volumes. Others offer limited services, requiring you to handle tasks like showings or open houses yourself. Always confirm included services before signing.
Will offering low buyer’s agent commission hurt my sale?
Possibly. In competitive markets, buyer’s agents might prioritize homes offering higher commissions. According to industry professionals, commissions below 2.5% can reduce showing requests. Consider your local market conditions when deciding what to offer.
How do low commission agents make money?
They typically handle more transactions per year than traditional agents. By using technology to streamline operations and reduce overhead, they maintain profitability on thinner per-deal margins. Some work for brokerages that operate on a high-volume, low-margin business model.
Are Low Commission Real Estate Agent legitimate?
Yes, if they’re properly licensed. All real estate agents must meet state licensing requirements, complete continuing education, and follow ethical standards. The commission rate doesn’t determine legitimacy. Always verify licenses through your state’s real estate commission before hiring any agent.
