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Low Commission Real Estate Agents

Low commission agents charge a bigger commission than traditional agents. For instance, if the industry standard in your area is 6%, in the case of low commission agents, the charge will be 3%. Many home sellers want to save money on a property sale, but hiring a low commission agent does not ensure a low commission throughout the transaction.

In the United States, the commission system is set up so that a listing agent's 6% commission is split 50/50 with the buyer's agent.

What is a real estate agent who works on a low commission?

A low commission real estate agent works for a lesser commission than most other agents in the area. While delivering the same quality of service to their clients, low commission real estate agents charge less than their competitors. The volume and effectiveness of a low commission real estate agent's business model are key. These agents are also more likely to focus on specific categories of clients. 

The optimal commission for a real estate agent is 3% of the sale price. However, it typically ranges from 2.5 to 3%. This value is true for both the seller and buyer's agent. Some of the Low commission best real estate websites are Houzeo, HomeLight, Redefy, and Redfin.

How to check a valuable low commission real estate agent?

Home sellers might investigate the reputation of a low-commission real estate agent. So check the following details:

  • Check out what previous customers have to say about the agents on the internet.
  • When hiring a low-commission salesperson, it's important to remember that Realtors assesses the agent's competency and professionalism.
  • Request proof of the agent's home sales in the last year.
  • Check your state's professional licensing agency and the Better Business Bureau for unresolved complaints. 
  • Learn about the person's experience as a real estate agent.
  • Check out how engaged the agent is compared to other agents in the real estate market.
  • A useful tool is the Showcase IDX app, which helps consumers find out exactly what they're looking for in a new home. Just check out the visit Showcase IDX's coverage page.

Pros of Low commission real estate agent

Standard Process

One of the advantages of working with a low commission real estate broker is the streamlined procedure. Selling a house the traditional way can take weeks and a lot of effort. As they focus on selling homes fast and efficiently as part of various packages, low commission real estate brokers are more productive and cost-effective.

Advanced Technology

Low commission real estate agents feature technologically advanced platforms that allow you to schedule showings online and take advantage of virtual home tours and other premium marketing services at no extra charge.

Better Negotiation

You have full control over the description of your listing, how you handle showings, holding open houses. You can communicate with the buyer's agent and even negotiate directly with them. In many cases, you might be a stronger negotiator than a real estate agent because it is your home.

Cons of Low commission real estate agent

Low Price

You'll also likely get a lower price for your home than if you hired a top agent. Making strategic renovations, pricing it appropriately, and working with a well-connected real estate agent can all help a home sell for more money. They can also assist you during the sale negotiation process. When the buyer requests repairs following the inspection, they can assist.

Dual-Agency Problems 

When a real estate agent represents both the seller and the buyer, this is known as a dual agency. When a commission agent makes so little money from the sale in the first place, the desire to double-end the deal grows.

Inadequate Home Selling Experience 

Ineffective Low-commission agents frequently make their income by selling many homes. This process means they have less time to devote to each sale in many circumstances. They might not be able to assist you with anything other than listing and showing the property.

What are the factors when Hiring a Low Commission Real Estate Agent?

Consider the services you desire from a real estate agent while deciding. These considerations should guide your decision on whether or not to hire an agent.

Dual Agency's Risk

It is a dual agency when an agent works on the listing and selling sides of a transaction. There are several conditions. The selling side receives significantly higher remuneration than the listing side. Despite all of an agent's ethical obligations, it's easy for some agents to be swayed by financial signs. 

Selling Experience

Many low-commission real estate agencies have skinny listings accessible. Perhaps the low-fee agent will list your home on the MLS (multiple listing service) and give you access to the papers. On the other hand, the agent might not be able to help with organizing showings, obtaining feedback, negotiating an offer, or dealing with snags like a buyer's home inspection or appraisal miss. Consider whether the agent will be able to do all of the tasks.


Possibility of Low Fee Underselling Realtors might not be able to advertise your house to a huge number of buyers. The most prevalent reason for a home being undersold is underselling. "Underselling" refers to a failure to perceive the property's true value. It is best to expose your home to as many potential purchasers as possible to avoid underselling it.

Do Research

Before hiring a professional service provider, you should do your homework. Keep the following characteristics when looking for agents who offer low-cost real estate commissions.

  • List of Services
  • Marketing Strategy
  • Customer Reviews 

No realtor company is flawless; it depends on the elements involved in all circumstances. You should always consider your situation before deciding on a real estate agent.

The key is to spend time conducting research and remaining patient throughout the choosing process to ensure that you have the finest agency.


Low commission real estate agents are a fantastic alternative because their services are less expensive than those provided by traditional real estate brokers. Houzeo and other low-cost real estate firms like it offer a wide range of services at affordable prices, making them popular with sellers.

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