Selling a home is not just a challenging process but it also costs you money. And the one cost that trumps all other home selling charges is realtor commission. But there are ways in which you can save on realtor commissions. You can list on a flat fee MLS service or hire a discount real estate agent who can do the job for a lower commission. Moreover, some low commission realtors offer services that are on par with the services of a traditional realtor.
To save money on your home sale, you can onboard one of the low commission realtors offering discounted listing fees. Low commission realtors can sell your home for a commission lower than what traditional agent charges. Less commission to them means more of your money saved but are discount realtors legitimate? Also, would the commission savings impact your sale process? Let’s analyze what some of the best low commission realtors in India do.
How much is an average real estate commission?
In real estate transactions, the commission is usually split evenly between the buying agent and the listing agent. If we talk about the average real estate commission rate in the country, it is about 5%. So, on average, a seller’s agent would charge a commission of 2.5%. However, the rates depend upon the location of a house. In some areas in the country, realtors charge a 6% rate also.
In the competitive real estate market, many discount real estate companies have been functional. They charge you a lower commission rate that can range between 1.5% and 2%. Also, you can negotiate the rates with your real estate agent.
What are low commission real estate agents?
Low commission real estate agents are agents that work for a lower, discounted commission. When you compare traditional real estate agents to low-commission agents, they obviously make less money on a home sale than traditional agents. You would want to save money on your home sale, but your job doesn’t end with choosing a discount real estate agent.
A minimal commission real estate agent can function in many different ways: She may just list your property on the MLS or provide you full real estate services. Many low commission real estate agents and companies define their services by way of offering packages.
While there are low commission realtors who will sell your home for a discounted rate, there are flat fee MLS companies like Houzeo that charge a fixed listing fee to list your home and even offer you a range of services saving you thousands on real estate commission.
Are low commission realtors legitimate?
Low commission realtors and flat fee MLS companies are completely licensed and as reputable as traditional realtors and brokerages. Most big names in the discount real estate and flat fee MLS industry have a presence across the country.
In areas like Las Vegas, there are fewer agents and the demand is high. Many low commission real estate agents function in this area.
It is good for you to know about the commission and other services offered in your area. You must know the charges your home sale would concede depending upon the condition and price range of your home. For example, even if you get an offer of 2.5% instead of the usual 3% in your area, you can save thousands of dollars. Similarly, with flat fee MLS companies and their range of services you can save a huge amount of money.
What kind of low commission realtor would be best for you?
Below are the types of low commission realtors you can choose from:
- Full-service low commission realtors
Full-service discount realtors are the best of all three types. The companies let you balance savings and service. However, note that some companies in this category offer better value than others. Discount realtors like Redfin and Clever offer full service at low commission rates. They provide an experience similar to selling a house with a traditional realtor.
As per your location and sale price, you may find some great flat fee real estate brokers like Houzeo that offer you to list your home by paying a flat fee. You can choose one of their premium packages that offer amazing value at a low price point.
Full-service low commission realtors are the right fit for you when it offers an optimal balance of savings and support and gives you the best overall value.
- Medium-service low commission realtors
If you are fine to do a little DIY work in your home selling process and are okay to let go of the dedicated support of an agent, you might want to look into a medium-service discount company.
Medium-service low commission brokerages are best for you if your property is a desirable one and in a hot market, meaning you have a relatively simple selling situation. In a situation where your home is in good condition, you have a flexible timeline and you do not have pre-foreclosure, you might not require the service of a full-service agent.
Most companies in this category charge flat listing fees that can offer you a great value on a desirable property.
- Limited-service low commission realtors
If you are pondering over listing your house FSBO, you can do so using a limited-service discount company. They may offer you the exact support you need at a low price.
But unless you are a local real estate expert who has much free time to manage a home sale and is good at negotiating, limited-service companies aren’t going to fit you much. A limited-service company is best suited to highly experienced home sellers who are confident to list their home as FSBO and can work with the least support. If not, a full-service or even a medium-service discount real estate company could be the best fit for you.
How to list on MLS?
MLS or Multiple Listing Service is a service with which you can pay a one-time flat fee to a registered discounted broker or agent and get your home listed on a local MLS. A flat fee MLS company is a kind of discount real estate broker that lets you list your home at a flat fee rather than having to shell out a percentage of your home’s sale price. If you are wondering how to list on MLS, you can do so using the services of a flat fee MLS company.
The top flat fee MLS company in the US is Houzeo. It offers you amazing features like advanced tech and amazing customer support that lets you make more savings. Along with saving on commissions, you get to use the high-tech technology of Houzeo using which you can access Houzeo Showings and even make counteroffers. So, if you are thinking of choosing a discount broker, you must give this flat fee service and its packages a look.
The best low commission realtors are the ones that provide the full service of a standard agent but at a fraction of the cost. Low-commission real estate companies are definitely good given you go with the right company. You can get a full-service experience at a much lower rate by working with companies like Houzeo. For more information about them check Houzeo reviews.