Discount real estate agents can help a typical Madison resident save as much as $5,465 when selling their home — based on the median home value in the city.
There are different types of discount real estate brokers. Some offer full service for a reduced commission, while others offer only limited services — such as MLS listing services — for a flat fee.
Choosing a discount real estate broker, for home sellers in Madison, is a great option — as you'll likely be able to connect with a top agent while avoiding paying 6% in real estate commission.
How do Discount Real Estate Brokers Work?
Traditional real estate agents in Madison charge a 5-6% commission rate when selling you home. In contrast, discount real estate brokers offer home sellers rates as low as 4%, with some offering to list your home for a flat fee of $3,000 plus a buyer's agent commission of 3%. For the typical Madison resident, the amount saved by working with a discount broker represents 7.80% of the median household income in the city.
|Neighborhood||Standard Commission Cost||Discount Real Estate Agent Cost||Savings|
|Maple Wood Condominum||$7,555||$6,778||$778|
* Figures based on median home values data from Zillow
Those looking to buy a home in Madison can also save by working with discount agents, as they may be eligible to receive a buyer rebate. These rebates can range from 0.5% to 1% of the home's sale price. For eligible sellers, that would translate to about $1,410.89-$2,821.77 for a typical house in Madison.
Why would a real estate agent work for a discount?
Discount real estate agents offer reduced commission to connect with more clients. The rationale is that the increased volume of transactions, made possible by offering low commission rates, makes up for the difference in income by offering a lower commission.
Additionally, some traditional real estate agents opt to join referral networks, such as Clever, where they agree to work for a discounted commission in exchange for being connected with clients. This allows them to generate new business while avoiding the cost and effort of doing so, which accounts for a significant portion of most agents' operating costs.
Discount Real Estate Agents in Madison
We can connect you with top-rated, Madison real estate agents who will list your home and let you save on commission. Clever Partner Agents sell your home for a flat fee of $3,000 for homes under $350,000 and 1% for more expensive homes. In Madison this translates to a savings of $5,465 compared to the typical 6% commission rate, for a typical home.
Why Madison Discount Real Estate Brokers May be Right For You
The money saved by choosing a discount real estate broker in Madison — which could be as much as $5,465 for a typical house — makes it a wise financial choice. The only caveat is that you need to make sure the agent you choose is a good fit.
Finding an agent with intimate knowledge of the Madison real estate market and an excellent reputation, can have a huge effect on the amount of equity you get from your home's sale. Top real estate brokers do this by determining the right listing price, and knowing the best ways to market your home.
Furthermore, every day your home sits on the market costs you money — in Wisconsin, this can add up to $1,817 over a one month span. The right real estate agent will make sure your home sells as quickly as possible to minimize these costs.
Additional resources for Madison home buyers and sellers
Estimated savings are based on home value estimates for Madison from Zillow's home value tool. Discount real estate agent saving estimates represent the cost difference between a listing commission rate of $3,000 plus 3% for the buyers agent, compared to the standard 6% rate. Data on median income by household came from the U.S. Census Bureau.