If you have worked with real estate brokers, you would be aware you need to pay them a commission for using their services. They charge a commission of around 6%, which the seller needs to pay. This can be a significant sum of money and is paid for the services rendered by the agent.
Were you aware that there were discount real estate brokers who offer a lesser commission? Yes, discount real estate brokers are companies that offer substantial discounts on their commission. When you work with such a broker, you can expect to get savings on the commission money.
If you would like to work with a discount real estate broker, then you search online for discount real estate brokers near me. Since there are many companies, choosing one of them would be tough. To help you, we have compiled a list of the top discount real estate brokers in the US.
Who are discount real estate brokers?
Discount real estate brokers are companies that offer their services with a reduced rate of commission. A real estate agent would charge a 3% commission. A discount real estate agent would charge a lesser commission, which could be 1% or 2%. Some even charge a fixed flat fee. This is beneficial for homeowners who get to save on commission.
So, how do discount real estate brokers manage to reduce their commission? There are different ways they do this:
- They offer all the services at a discount and focus on volume. By offering a lesser commission, they can attract more customers driving up volume and revenue. This helps them earn more even though they offer discounts.
- Some agents offer only basic services at a discounted rate. For additional services, they charge additional fees or increase the rate of commission.
- Others offer a fixed fee or flat rate. For this fee, they list the property on the MLS and may offer other minimal services. All other services are offered extra, for which customers need to pay.
When choosing a discount broker, make sure you choose one that offers the highest discount. Apart from the discount, they must offer basic services like MLS listing. Check the reputation of the broker (based on customer ratings) before deciding.
The Best Discount Real Estate Brokers
1. Houzeo
Houzeo is one of the best FSBO sites that allow owners to sell their homes on their own without an agent. They work on a fixed fee or flat fee. They charge $349 as a flat fee and would list the home on the MLS. They are also listed on other popular websites like Zillow and Realtor.com. There is absolutely no seller commission to be paid. This translates to huge savings, which is why Houzeo is so popular.
They are a reputed company known for their customer service. Their customer ratings and Houzeo reviews are an impressive 4.9/5. The company makes effective use of technology to help customers manage their listings. They also have a mobile app for users. Houzeo offers a range of services for customers who can choose whichever they want. They have zero hidden fees, which is one of the key features of the company.
2. Redfin
Redfin is a well-known discount brokerage with a national presence. They offer savings of 20% to 30% on the commission. This helps sellers save money. Their website makes effective use of technology to help sellers list their property. They are a full-service brokerage that offers a host of services for clients. They have good agents who offer personalized services.
The savings they offer on the commission is not sizable. Also, their listing is quite slow and reviews state that they take up to 18 days to list the home on the MLS. There are also issues with their customer service, as reported by customers. They have a review rating of 3.9/5 which is not good enough for a company of their size.
3. Ideal Agent
With a rating of 4.9/5, Ideal Agent is one of the well-known discount brokerages in the market. They help you find the best agent who can offer quality services to you. They use their own system to find a perfect agent match based on your needs. The agents offer a commission of 1% for listing. Their agents are among the top in the market.
The savings they offer is marginal and not very helpful. They offer a single-agent match, which does not give you the freedom to choose among various agents. They don’t have a customer dashboard on their website. Various add-on services are available but priced extra. Read more about Real Estate Marketing.
4. Listing Spark
This is yet another well-known discount real estate brokerage. They have a unique package where they offer a package for $7 per day. There is no other commission to be paid. The quicker the deal is closed, the more the savings. If you are ready to pay an additional 0.5%, then you can get additional services under the premium plan.
They have a great customer rating of 5/5. The problem is their manual processes lead to delays. Their coverage is limited. Also, their per-day package will prove to be expensive if you are not able to close the deal quickly. The price for individual services is also costly.
5. UpNest
This is another well-known discount brokerage that helps you get the best agent. They have a great customer rating of 4.9/5. Their working model focused on matching an agent who meets your requirements. You need to pay a commission to the agent, but a discount is offered. This is pre-decided by UpNest. The problem is that this discount is not very sizable. UpNest claims to have helped customers save billions in commission.
Their claims are not very true, since the savings on commission is marginal. They take a referral fee from agents, which is why agents do not offer big discounts. While they match an agent for you, there is no guarantee that the agent offers good services. Their listing speed is also not very fast and there are issues related to customer service.
