Should You Choose a Discount Broker in 2024?

July 5, 2024
Natalie Thorburn

When selling your house, your primary motive is to maximize profit, and discount real estate agents can do just that. Instead of the typical 6% commission, they charge anywhere between 0.5% to 2.5%, saving you thousands of dollars.

The current median home price is $438,601. A traditional 6% real estate commission will cost you $26,316. But with a discount broker at a 2% commission rate, it’ll be just $8,772.

We have reviewed the 5 best discount brokers in the country. Let’s take a look at them.

Top 5 Discount Real Estate Brokers in America

1. Houzeo.com

With Houzeo’s flat fee packages, your home can be on the MLS for as little as $399. The key features that make Houzeo one of the top discount real estate brokers are:

  • Commission Savings: You will pay just a small flat fee to list on MLS and, on average, save up to $10,000.
  • No Hidden Fees: All costs are disclosed upfront.
  • Nationwide Coverage: Houzeo operates in 47 states and DC.
  • Max Exposure: Houzeo packages give you access to the MLS and other top real estate companies, such as Zillow, Trulia, and Redfin.
  • Advanced Technology: E-signature and online forms make listing your home quick and easy.
  • 5-star Customer Service: Dedicated customer support promptly addresses every concern you may have.

2. ListingSpark

ListingSpark is headquartered in Austin and serves 16 cities in Texas. It does not charge a commission on the home value. Instead, it levies a one-time fee of $2,199 or $3,999, depending on your chosen plan.

Certain advantages of ListingSpark are:

  • Quick Listing: Listing on the ListingSpark website takes 20 minutes. Once you've filled in the details, it will go live within 24 hours.
  • Add-on Features: They offer professional photographs, a lock box, a yard sign, a showing manager, and escrow services.
  • Customer Support: Positive customer reviews talk about ListingSpark’s reliable staff and 24×7 availability.

3. Ideal Agent

Ideal Agent is headquartered in Tampa. It offers all the traditional Realtor services for a 2% commission.

Certain advantages are:

  • Pre-Negotiated Commission: Ideal Agent pre-negotiates the commission with their agents. This helps you focus on the important aspects of the deal, such as showings, home staging, home inspection, etc.
  • Dedicated Concierge: Their agents help you with negotiations and closing.

4. Simple Showing

SimpleShowing is a licensed brokerage in Georgia, Florida, and Texas. They offer house listing services at 1%.

The offer includes the following advantages:

  • Professional Photography: Professional photography and videography of the home are done at no additional charge.
  • Local Agent: The agents know the neighborhood well. They can assist you right from pricing your home till closing.

5. Homelight

HomeLight has a huge broker database. Their agent handles multiple clients at a time, which may compromise the level of service you receive.

HomeLight’s advantages:

  • Quick Service: You quickly get connected with agents within two minutes of filling out a form.
  • Representative Network: You can compare the agents and their services from a database of 28,000 agents.

Pros and Cons of Discount Agents and Real Estate Brokers

Here are the pros and cons of using discount real estate agents and brokers:

Advantages:

  • Savings on Commissions: A typical real estate agent’s commission is 6%, but discount agents charge a lower commission between 2% and 4%. This can save you thousands of dollars.
  • Availability of Traditional Services: You can still use basic services like assistance with home pricing, marketing, and negotiations. You can also get your home listed on the MLS (Multiple Listing Service) and receive more buyer offers.
  • Streamlined Process: Low-cost Realtors provide services similar to those of traditional agents. They help you list your property on the MLS, market it, and assist with paperwork.
  • Faster Home Sale: Some discount brokerages guarantee an offer on your home within a certain number of days. This can be a great option for selling your house quickly.

Disadvantages:

  • Upfront Payment: Sometimes, you have to pay the commission upfront. So, even if your home doesn’t sell, you’re still paying the fees for their services.
  • No Help in Buyer Search: You must look for the buyer yourself. Discount agents do not market or promote the home much to buyers as it’s time-consuming.
  • Not for First-Time Sellers: Most discount real estate brokerages are virtual. A first-time seller or buyer may need some hands-on guidance.

Are Discount Brokers Worth It?

Yes! They can save you at least $8,000 to $16,000 in commissions. Discount real estate agents are a good option for sellers who are experienced in real estate. If you can handle some processes independently, you can opt for discount Realtors.

 

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