Buying or selling a home is one of the biggest financial decisions most people make in their lives. Alongside the emotional weight of moving, there is also the financial stress of paying steep real estate commission fees. Traditionally, sellers have paid around 5% to 6% of the home’s sale price in commission, split between the listing agent and the buyer’s agent.
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| Best Discount Real Estate Brokers to Save on Commission Fees |
For a $400,000 home, that could mean $20,000 to $24,000 in fees money that could otherwise go toward a new home, retirement savings, or paying off debt.
{tocify} $title={Table of Contents}Fortunately, discount real estate brokers have emerged as a solution to this long-standing pain point. These companies and agents offer reduced commission fees while still providing the professional services needed to market, negotiate, and close a home sale. For sellers looking to keep more money in their pocket, choosing the right discount real estate broker can be a game changer.
This essay will explore the best discount real estate brokers, how they operate, and what makes them stand out. It will also cover the pros and cons of using a discount broker and provide guidance on how to choose the right one for your needs.
How Discount Real Estate Brokers Work
Discount real estate brokers typically reduce commission in one of two ways:
- Flat Fee Listings – Instead of charging a percentage, the broker charges a fixed fee, which is often much lower than the traditional 5%–6% commission.
- Reduced Percentage Commissions – Some discount brokers still charge a percentage, but usually at a reduced rate, such as 1%–2% for the listing side.
Many discount brokers also offer tiered service levels, allowing sellers to choose between basic MLS listing services or full-service packages that include marketing, negotiations, and transaction management.
Best Discount Real Estate Brokers
1. Clever Real Estate
Clever Real Estate is a top player in the discount brokerage space. Clever connects sellers with full-service local agents who agree to work for a flat listing fee of $3,000 (or 1% if the home sells for over $350,000). This model makes Clever stand out because sellers get full-service representation for a fraction of the cost.
Pros:
- Access to top local agents from major brokerages like Keller Williams and RE/MAX.
- Full service support including pricing strategy, marketing, and negotiations.
- Flat fee provides predictable savings.
Cons:
- Not every agent in the network may be a perfect fit.
- Still must offer buyer’s agent commission (usually 2.5%–3%).
2. Redfin
Redfin is one of the most recognized discount real estate brands. Redfin charges around 1.5% listing commission, which is significantly lower than the traditional 2.5%–3% charged by most listing agents. In some markets, sellers may qualify for an even lower 1% fee if they also buy with Redfin.
Pros:
- Tech driven platform with virtual tours, 3D walkthroughs, and broad online exposure.
- Experienced Redfin agents backed by a team-based model.
- Transparent pricing and savings estimator available on their website.
Cons:
- Redfin agents handle a higher volume of clients, meaning less individualized attention.
- Not available in every market.
3. Homie
Homie is a disruptive flat-fee real estate company popular in certain states like Utah, Arizona, and Nevada. Homie charges a flat fee of around $3,500 to list a home, regardless of the selling price.
Pros:
- Potential for massive savings on high-value homes.
- Tech-focused with tools for scheduling showings and handling offers.
- Sellers can still offer competitive buyer’s agent commission or choose to reduce it.
Cons:
- Limited availability to select states.
- Less personalized, more self-service approach compared to traditional agents.
4. Houwzer
Houwzer offers a flat $5,000 listing fee regardless of home price. Unlike some discount services, Houwzer provides full-service agents, professional photography, and dedicated support teams.
Pros:
- Flat $5,000 listing fee saves significantly on mid- to high-priced homes.
- Full service package with professional marketing.
- Transparent and straightforward pricing.
Cons:
- Currently limited to certain metro areas on the East Coast.
- Buyer’s agent commission still applies.
5. Trelora
Trelora offers a flat listing fee of around $3,000–$4,000, depending on the market. The company also advocates for lower buyer’s agent commissions, encouraging sellers to negotiate.
Pros:
- Substantial savings with flat fees.
- Support from a team of agents.
- Modern technology platform.
Cons:
- Limited availability.
- Team-based service may not feel as personalized.
6. Assist2Sell
One of the oldest discount brokerages, Assist2Sell has been around since the 1980s. They typically charge reduced commissions rather than flat fees, but savings vary by location.
Pros:
- Longstanding reputation in the industry.
- Personalized service from local franchise offices.
- Savings on commission compared to traditional agents.
Cons:
- Service quality varies by franchise.
- Not available nationwide.
Key Factors to Consider When Choosing a Discount Broker
- Level of Service: Not all discount brokers provide the same level of support. Some are full-service, while others are more hands-off.
- Local Market Knowledge: An agent’s knowledge of your local market can make a big difference in pricing and negotiations.
- Technology Tools: Some discount brokers rely heavily on digital platforms, which may appeal to tech-savvy sellers but overwhelm others.
- Availability: Many discount brokerages only operate in select states or metro areas.
- Buyer’s Agent Commission: Even if you save on the listing side, most sellers still need to offer a competitive buyer’s agent commission to attract buyers.
Pros and Cons of Discount Real Estate Brokers
Pros:
- Significant cost savings on commissions.
- Flexible service options.
- Access to modern technology and tools.
Cons:
- Limited availability depending on location.
- Potential for less personalized service.
- Buyer’s agent commission is usually non-negotiable.
Example of Potential Savings
Let’s take a $500,000 home sale as an example:
- Traditional Agent: 6% commission = $30,000 total ($15,000 listing agent, $15,000 buyer’s agent).
- Clever Real Estate: $3,000 listing fee + $15,000 buyer’s agent commission = $18,000 total.
- Redfin: 1.5% listing fee ($7,500) + $15,000 buyer’s agent commission = $22,500 total.
- Houwzer: $5,000 listing fee + $15,000 buyer’s agent commission = $20,000 total.
Depending on which discount broker is chosen, the seller could save anywhere from $7,500 to $12,000 or more.
Conclusion
Discount real estate brokers are changing the way people buy and sell homes by offering significant savings on commission fees. Companies like Clever Real Estate, Redfin, Homie, Houwzer, Trelora, and Assist2Sell give sellers options beyond the traditional 6% commission model. Each comes with trade-offs in terms of service, availability, and technology, but all share the goal of helping sellers keep more of their equity.
For homeowners looking to maximize their profits, researching and comparing discount brokers is a worthwhile step. By choosing wisely, sellers can enjoy the expertise of a real estate professional without paying the steep price tag of traditional commissions.