Are Limited-Service Real Estate Agents Worth It?

If you're selling your house and don't need the support of a full-service agent, working with a limited-service real estate agent could save you money. These agents let you purchase just the services you need — like a MLS listing — without overpaying for tasks you can handle yourself.

However, selling a home is a lot more work than many people realize. You may end up purchasing more assistance from your limited-service agent than you expected, and the costs add up quickly when you're paying for those services a la carte.

After adding up the total cost of working with a limited-service agent, you may actually save more by listing with a discount real estate brokerage. The top low commission companies, like Clever Real Estate, offer full service for a fraction of the price most agents charge.

Clever negotiates low, 1.5% listing fees with top-rated agents from trusted brokerages like Keller Williams and RE/MAX. On a $400,000 home sale, finding your agent through Clever would save you $6,000!

» SAVE: Sell with a top full-service realtor for just 1.5%!

Read on to learn more about what you can expect working with a limited-service agent, how much they cost, and more!

What does a limited-service agent do for a seller?

Limited-service agents offer a few key services and minimal support for sellers. But figuring out exactly which services a limited-service agent will provide can be tricky — there's no formula or standard practices across the industry. Instead, the services offered vary by company, agent, and even state.

At a minimum, they'll list your home in your local multiple listing service (MLS), but they could also offer more options, like:

• Contract reviews
• Negotiation assistance
• Advertising products (like yard signs and key lockboxes)

A traditional real estate agent handles everything from gathering comps to negotiating offers and coordinating the closing process.

But a limited-service agent may only do a fraction of what a full-service agent would do, leaving you to take care of everything else.

Many limited-service agents use an a la carte pricing structure. This gives you a TON of flexibility and control over how much the agent is involved in the transaction and how much you'll ultimately pay to sell your home.

In many states, however, limited-service agents have to contend with state minimum service requirements. These regulations limit how "limited" these agents' services can be by requiring them to perform certain duties for their clients — even if the client doesn't want or need them.

What a limited-service agent doesn't do for a seller

The National Association of REALTORS® (NAR) defines a limited-service real estate agent as an agent who does NOT offer one or more of these essential agent services:

• Arrange listing appointments with other brokers
• Accept and present offers
• Advise the seller on the merits of an offer
• Assist the seller with counter-offers
• Negotiate on the seller's behalf[1]

Limited-service agents could also leave out non-essentials that full-service agents usually help with, like:

• Comparative market analysis
• Professional photography
• Hosting open houses
• Preparing and filing paperwork

Ultimately, sellers have to take on more responsibility for selling their home when they list with a limited-service agent.

» MORE: What's the difference between discount and full-service realtors?

Benefits and risks of working with a limited-service agent

What are the benefits?

You're likely considering a limited-service agent because you want to save money on realtor commissions — and you certainly can!

While the price tag will vary depending on the specific agent and the services they provide, it will likely be a lot less than a full-service listing agent who charges 2.74% — the current national average real estate commission rate for listing agents.[2]

On top of the savings, you may like the flexibility that comes with a la carte pricing. If you're a go-getter who's ready to take on more of the work to sell your home, working with an agent who offers this pricing structure could be just what you need.

You'll be able to choose exactly what you need an agent's help with. It gives you more control over nearly every step of the transaction.

» LEARN: The best ways to save on realtor commission fees

What are the risks?

When you sell with a limited-service agent, you miss out on the experience and expertise that a full-service agent offers. When we surveyed 1,000 recent American home sellers, we found that those who sold their home with an agent earned close to $50,000 more in average profit than those who sold without an agent in 2022 and 2023.

In addition, FSBO sellers have regrets, as over half (53%) of non-traditional sellers say they wish they used an agent.[2]

Real estate transactions are usually complicated and fast-moving. If you make just a few small mistakes, they could cost you even more money than you save by not paying to work with a full-service agent.

1. You have a higher chance of choosing the wrong listing price

A full-service agent will often have an expert-level understanding of the housing market in your area. They can look at comps and understand local trends to recommend the best price.

A limited-service agent may not offer any home pricing guidance or have the local knowledge necessary to recommend the right price. Instead, you'll have to choose your own listing price, which could lead either to you selling your home for less than it’s worth or to it sitting on the market for a long time because it's priced too high. In fact, just over half of the sellers we surveyed (53%) say they had to reduce the asking price for their home.[2]

2. You won't have much support during negotiations

When it's time to negotiate, a limited-service real estate agent usually won't offer much assistance. You may be able to purchase some of the agent's time to look over offers and give you some advice, but you'll likely have to negotiate with the buyer's agent yourself.

This could end up costing you a lot of money by either settling for a lower price, giving up more concessions, or offering the buyer more credits than what's necessary to get the sale to closing.

A full-service real estate agent negotiates deals for their clients all the time and most agents are really good at it. Unless you're a master negotiator, you might have trouble negotiating offers as well as an experienced agent could.

3. You may need more services than you originally planned

If you underestimate how much help you'll need to sell your home, you'll have to buy more support from your limited-service agent. This will drive up your total costs and lead to you paying MUCH more than you expected — especially compared to the level of service you'll receive.

You could even run into a situation where you need support that a limited-service agent doesn't offer. Depending on the terms of your listing agreement, it could be difficult to find that help from another agent without terminating your agreement and starting over from scratch.

Are limited-service agents and flat-fee MLS companies the same?

Flat-fee MLS companies are a type of limited-service real estate company that only lists your home in your local MLS for a low, flat fee.

According to NAR, listing-only companies won't provide ANY of the following services:

• Arranging listing appointments with other agents
• Accepting and presenting offers
• Giving advice on how strong a particular offer is
• Presenting counter-offers to the buyer
• Negotiating with the buyer or their agent[3]

But many companies that claim the "flat-fee MLS" title also offer add-on services and upgraded listing packages that could include things like offer reviews and negotiation assistance. Based on NAR's definition, these companies would technically qualify as limited-service real estate companies, but not flat-fee MLS services.

Just remember — companies call themselves all sorts of things that may not be technically accurate. When you're choosing a listing agent, you shouldn't worry so much about labels. Instead, focus on the price and the services you'll get in exchange for your money.

» MORE: Find the best flat-fee MLS services near you

State-level minimum service requirements

Several states have laws that require all real estate agents to provide certain services to every client. But the exact minimum service requirements will vary from state to state.

For example, Iowa requires agents to:

• Accept and deliver offers
• Assist the client with preparing, negotiating, and presenting offers and counter-offers
• Answer their clients' questions about contracts and negotiations
• Provide prospective buyers with access to a property[4]

Not every state's requirements are so stringent. Some may only require agents to answer their clients' questions and others either don't have any minimum service requirements or allow clients to opt out of the required services.

If you are in a state with these requirements, though, you can expect to pay more to work with a limited-service agent. Instead of paying for only the services you need, you'll also have to pay for the required services even if you don't want or need them. Depending on the laws in your state, you may find better overall value with a low commission realtor.

Does your state have minimum service requirements?

How much do limited-service listings typically cost?

The cost of a limited-service listing will vary based on the individual company, how they offer their services (a la carte or packages), and how much help you need from your agent.

We've seen some agents offer a simple limited-service MLS listing for less than $100, but your costs could add up quickly when you tack on other services as well.

Other services provide all of the services in a packaged price, which could end up being higher than what you desire.

For example, Houzeo — a national limited-service real estate company — charges around $400 for its most basic offering, providing local MLS listing access for six months and 24 listing photos, unlimited listing changes, open houses, and other features.[5]

How much can you save with a limited-service agent?

You can save quite a bit of money by working with a limited-service real estate agent instead of a traditional full-service realtor.

Sellers typically pay between 2.5–3% of their home's final sale price to their listing agent. Depending on your home's value and the average real estate commission rate in your area, you could end up paying several thousand dollars just to your listing agent.

But you can often lower your listing fees by working with a limited-service agent — as long as you're willing to take on the extra risks.

Here's how much you could save by working with an agent who charges a $2,000 flat fee compared to a traditional listing agent.

Top budget-friendly alternatives to limited-service listings

Working with a limited-service agent or paying a flat-fee MLS company for a limited-service listing is one way to make your home sale more affordable. But, this approach isn't right for everyone.

If saving on realtor commission is your top priority, consider these budget friendly alternatives to find the best fit for you.

Sell with a low commission real estate company

One of the best ways to save on real estate commission is to sell your house with a low commission real estate company.

Unlike limited-service agents, the top discount real estate brokerages offer huge savings without requiring you to do more of the work yourself. These companies have found ways to lower their rates while still providing service that's similar to working with a traditional agent.

Clever, for example, negotiates low commission rates with full-service realtors at traditional brokerages like Coldwell Banker and Century 21. Since Clever connects its partner agents with customers at zero upfront cost, they can spend less on marketing and share the savings with you!

List your home for sale by owner (FSBO)

You can bypass a listing agent altogether by selling your home all on your own. If you're an experienced seller and confident in your ability to find a buyer without listing on the MLS, you can maximize your savings by selling FSBO.

But think carefully before choosing this route. You'll take on even more risk and responsibility since you won't have an agent in your corner to answer questions, advertise your home, or help you manage the closing process.

» READ: How to sell your home FSBO

Sell to a "We buy houses for cash" company

If your property is either distressed or tough to sell, you might consider selling to a "we buy houses for cash" company.

These companies make all-cash offers on nearly any property, regardless of its condition. Since they rely on repairing the property and reselling it for a profit, they'll usually offer well below your home's market value — sometimes as low as 50% of what it could sell for if it were fixed up and listed on the open market.

Still, if you need to sell fast or don't want to deal with getting your home ready to sell, a cash buyer could be a good way to sell your home, as long as you aren't too concerned about the sale price.

» LEARN: Best "We buy houses for cash" companies

Sell to an iBuyer

iBuyers like Opendoor and Zillow Offers use technology to make all-cash offers on homes — often sight-unseen.

These companies could be a convenient way to sell your home. However, many homes don't qualify for an offer. iBuyers have strict criteria for the homes they'll purchase based on the property's location, age, condition, and other factors.

If you do qualify, most iBuyers offer a flexible closing period — usually between seven and 90 days. But the convenience of choosing your closing date and not listing on the open market comes with a price. Most pay less than you'd get on the open market and charge 5–15% service fees, so you'll likely end up with less money compared to a traditional home sale.

» READ: Everything you need to know about iBuyers

Next steps: talk to a licensed expert

FAQs about limited-service realtors

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