Discount real estate brokers offer a way to sell your home for less than the average commission rate. Most of these brokers charge a listing fee of 1-1.5%, compared to the average listing fee of 2.74%.
If you're looking to save on realtor commissions with a discount real estate brokerage, it's important to know that service, savings, and value can vary.
I've selected our top picks for discount real estate brokers to help you save on commission fees while ensuring high-quality service. My recommendations are based on my experience as a real estate agent and thorough research, including customer insights. This ensures you receive the most reliable and valuable information for your home sale.
⚡ Just looking for agents with discounted rates near you? Get proposals sent straight to your inbox from local agents charging a 1.5% listing fee. Compare agents from the discount brokerages below, plus top realtors from major brands like Compass and Century 21 who have agreed to offer lower rates.
Top 5 discount real estate brokers of 2024
Listing Fee
Customer Rating
Editor's Take
Pros & cons
Overview
Clever Real Estate is the best option for most sellers looking for an agent. The company matches you with multiple experienced, full-service agents so you can find the right fit, and it offers a low 1.5% listing fee no matter which agent you choose.
Listing Fee
Customer Rating
Editor's take
Pros & cons
At a Glance
1 Percent Lists offers a solid combination of savings and full service. If you're located in one of its service areas, read customer reviews and check Zillow transaction data to ensure you don't end up with an inexperienced real estate agent.
Read the full 1 Percent Lists review.
Listing Fee
Customer Rating
Editor's Take
Pros & cons
Overview
Redfin is a reputable discount real estate brokerage that offers significant savings, particularly if you buy and sell with the brokerage. But watch out for high minimum fees, which vary by market and can be high in some areas. Redfin's agents also work with a lot of clients, and they don’t always have time to provide as much hands-on service as you may need.
Read the full Redfin review.
Listing Fee
Customer Rating
Editor's Take
Pros & cons
At a Glance
Ideal Agent is a solid option if you’re looking for a top agent. The company vets its realtors thoroughly, so you’ll likely get a quality agent. But you won't save as much on realtor fees as you could with other companies.
Read the full Ideal Agent review.
Listing Fee
Customer Rating
Editor's Take
Pros & cons
Overview
Prevu is a solid option if you're buying an expensive property. You can receive up to 2% of the home's purchase price as a rebate; the full 2% is only available on properties over $1.25 million. Sellers will pay a 1.5% listing fee (about half the traditional rate). But watch out for minimum fees that vary by market and can be high, limiting your actual savings.
Read the full Prevu review.
How we ranked these discount brokers
Clever Real Estate is the top discount broker because it offers a consistent 1.5% listing fee nationwide and matches sellers with multiple experienced, full-service agents. Sellers receive personalized service and support while saving significantly on commission. Clever's high customer rating also further increases its credibility and customer trust.
Redfin also offers a 1.5% listing fee, providing substantial savings, especially for those buying and selling with the brokerage. However, high minimum fees in some markets and the potential for less hands-on service due to agents handling many clients lowered its ranking slightly.
With its 2% listing fee, Ideal Agent provides top-tier agents but doesn't offer the same savings as Clever or Redfin. 1 Percent Lists and Prevu are strong contenders with unique advantages in specific markets, but their limited availability and variable fees affected their overall rankings.
🔬 About our research process
As a former real estate agent, I evaluated nationwide discount real estate brokerages based on fee structure, overall savings, services offered, customer reviews, and brokerage reputation.
My approach includes interviewing actual customers, analyzing thousands of customer reviews, mystery shopping local offices to verify marketing claims, and uncovering details not listed on company websites. I regularly update our rankings to ensure you get the best and most accurate information about low-cost real estate agents available online.
Clever's mission is to help you make smarter real estate decisions and save money. We aim to provide objective, practical advice for sellers of all experience levels and homes in various locations and price ranges.
Selling a house is one of the biggest financial transactions you'll ever make. We strive to give you the information you need for the best possible outcome, even if it means choosing one of Clever's competitors.
Find discount real estate brokers near you
Sometimes, your best option is a local discount broker who offers lower commission rates in your area.
We've compiled comprehensive guides for all U.S. states (except Mississippi, North Dakota, and Wyoming, which are coming soon.) Use the table below to navigate your state and find the perfect discount broker.
What is a discount real estate broker?
A discount real estate broker is a licensed realtor who charges lower commissions than traditional brokers, passing savings on to buyers and sellers.
The average real estate commission nationwide is 5.32%, typically split between the listing and buyer’s agents and historically paid in full by the seller. (However, following the recent NAR lawsuit settlement, the buyer’s agent fee is no longer set by the seller and has become more negotiable between the parties.)
For example, the average home seller pays $19,146 in realtor fees on the average-priced home sale if they cover both agent's fees. No wonder our recent study found that 89% of sellers would have made different decisions had they known the true cost of selling a home.
Our research has found that in the average real estate transaction, that fee is split, with a 2.74% listing fee going to the seller's agent and 2.58% to the buyer's agent. However, discount brokers like Redfin and Clever Real Estate charge a 1.5% listing fee, significantly lower than the average. For a $500,000 home, this could save you around $6,650.
⚡ Get the best agents at a better rate. Use our free agent matching tool to find a great agent and take advantage of our 1.5% listing fee. Compare top local realtors from major brands like Keller Williams and RE/MAX — with no added fees or strings attached.
🏛️ NAR settlement and realtor commissions
After losing a lawsuit over their practices in 2024, the National Association of Realtors agreed to change how real estate professionals do business.
As of August 2024, buyer's agents are required to sign an "agency agreement" before providing services to a buyer. This agreement has to specify what services the agent will provide, and how much they will get paid.
Real estate agents are no longer allowed to split commissions with one another. In the past, it was common for a listing agent to collect a 6% fee from the seller, and then split this fee with a buyer's agent who brought a buyer. Going forward, buyer's agents will have to negotiate their fee directly with the buyer they represent.
Learn more about how the lawsuit will impact buyers and sellers.
This settlement is relevant to discount brokers, who already offer transparent, lower commission rates, ensuring sellers can save money while still receiving full service.
Potential savings using a discount broker
Given that the typical homeowner spends over $50,000 to sell their home—primarily on realtor commissions—using a discount broker can lead to substantial savings.
Our research shows that using a discount broker is also more profitable than selling without a realtor. Sellers who used an agent sold their homes for about $34,000 more than those who didn't, far outweighing the commission savings of going without a realtor.[1]
The amount you can save with a discount realtor depends on three main factors:
- Your home's estimated sale price
- Your discount realtor's listing fee (factoring in any minimum fees)
- Average real estate commission rates in your area
We'll cover the first two points — home price and listing fee — then discuss how savings can vary based on where you live.
This first table breaks down how much you'll save at different price points based on the listing fee charged by your discount realtor. Most discount real estate brands charge 1–2% (for context, the average listing fee nationwide is united_states). That can initially seem like a small discount, but it breaks down into a significant dollar amount, especially at higher price points.
How much you save based on listing fee paid:
Home price | 2% listing fee | 1.5% listing fee | 1% listing fee |
---|---|---|---|
$250,000 | $1,800 | $3,050 | $4,300 |
$500,000 | $3,600 | $6,100 | $8,600 |
$750,000 | $5,400 | $9,150 | $12,900 |
$1,000,000 | $7,200 | $12,200 | $17,200 |
Now, it's important to break it down by location. Average commission rates vary depending on where you're located.
For example, the average listing fee in New York is 3.00%. If you sell your $500,000 home with a realtor who charges a reduced fee of 1.5%, you'd save about $7,500 in realtor fees.
A seller in Utah with the same-priced house would save $4,000 (based on South Dakota's average listing fee of 2.30%).
How to choose a discount broker
When choosing a discount real estate agent, consider what services are important to you and ensure the agent offers the right services to fit your needs.
For example, 23% of recent sellers said they wanted an agent who could help price their home competitively and effectively market it to buyers.[2]
Other useful services a discount agent may offer include:
- Helping you sell within a specific timeframe
- Advising improvements to make your home more sellable
- Assisting with paperwork, inspections, and negotiations
- Providing photography and video.
If you are still deciding about an agent after an initial interview, talk to a few more candidates. Pay attention to each agent's past sales and customer reviews.
Pros and cons
Pros
- Lower commission
- Potential for higher profits
- Full service available
Cons
- Variable service quality
- Limited availability
- Potential added fees
Discount real estate brokers save sellers money by charging lower commission fees (1-1.5%) than traditional brokers without sacrificing sale price or service. Many discount brokers offer comprehensive services like marketing and negotiation support, making them a cost-effective choice for sellers.
However, service quality can vary among discount brokers and individual agents. Availability may be limited to certain regions, and high minimum fees in some areas can reduce overall savings. Additionally, sellers may still need to offer competitive buyer’s agent fees, which can impact total cost savings.
Discount real estate broker alternatives
If you're on the fence about selling with a discount real estate broker, you may be better off trying one of these alternative sales types.
Alternative option | Description |
---|---|
Sell without a realtor or with a flat fee MLS company. | Save big on realtor fees. Good for people with real estate experience who don't mind a big time commitment. |
Sell to a cash home buyer. | Sell in as little as a week. Good for homes in poor condition. |
Sell to an iBuyer. | Sell in as little as a week. Good for homes in move-in ready condition. |
Negotiate realtor fees yourself. | Pay a lower listing fee with an agent of your choice. May be an option if you're selling an expensive home in a hot market. |
The bottom line
Discount real estate brokers offer significant savings by charging lower commission fees, typically 1-1.5%, compared to traditional brokers. This can result in substantial cost reductions for sellers – without sacrificing service quality.
However, service levels can vary among brokers, and availability may be limited to certain regions. When choosing a discount broker, it's crucial to consider both the potential savings and the level of service.
Clever Real Estate is the top discount broker, offering a 1.5% listing fee nationwide while matching sellers with multiple experienced, full-service agents. This approach ensures that sellers receive personalized service and substantial commission savings.
If you're weighing your options for buying or selling a house, Clever can help!
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