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2 Percent Real Estate Commission Explained

The average Realtor's commission is 6%, but there are still full-service agents who work on 2% commission. At the end of the day, they can't match flat-fee agents in terms of price or value. Here's what you need to know.

The average Realtor's commission is 6%, but there are still full-service agents who work on 2% commission. At the end of the day, they can't match flat-fee agents in terms of price or value. Here's what you need to know.

The current average for real estate agent commission in the United States is 6%. However, in a competitive market, you’ll often find agents and agencies that are willing to accept less than that.

Here’s what you need to know about working with 2% commission agents.

Popular 2% Commission Agents

Here are a couple of the current most popular 2% commission agents and firms for you to investigate:

Redfin

Redfin is a full service real estate agency. That means that their agents complete all the tasks you might expect from a Realtor, like advertising, showings, open houses, counsel, etc. The company advertises these services for only a 1% or 1.5% listing fee; however, you must read the fine print.

They state that minimum commissions still apply, that the buyer’s agent commission isn’t included, and that the 1% listing fee isn’t included in all markets in the USA. They also state that the average savings for listing with them instead of a competitor is only $3,000.

Homelight

While Homelight isn’t a 2% real estate agency, it can help you find an agent who works on 2% commission, if that’s what you would like to pay. Essentially, Homelight is a giant search engine. It allows potential buyers and sellers to type in the different qualities they are looking for in a potential real estate agent.

One of these qualities can be low commission, perhaps at 2%. You can also consider number of homes recently sold, average sales price, location, and more. The online tool then scans its database and offers searchers a so-called “perfect match.”

Flat-Fee Agents Are a Better (and Cheaper) Alternative

Of course, the prospect of a 2% commission might sound pretty good — but not so fast! There are actually better options out there that provide the same level of service for less.

Clever connects you with top-rated, full-service, real estate agents who have agreed to work for a flat fee of $3,000, or 1% if your home sells for more than $350,000.

That means you get access to the same array and quality of services, but for a fraction of what you'd have to pay for a comparable agent found through a service like Homelight or Redfin.

Let’s Do the Math

On a $340,000 home sale you would pay $6,800 with a 2% commission agent, but only $3,000 with Clever. That’s a different of $3,800 – think what you could do with all of that extra cash.

On a $400,000 home sale, a 2% agent would take $8,000. Clever? $4,000.

The bottom line is that if you list your home with anyone other than a completely licensed, very experienced, full-service, friendly Clever Partner Agent, you’re essentially just throwing money away on a subpar experience.

Just save yourself the trouble get in touch with Clever today.

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Andrew Schmeerbauch

Andrew Schmeerbauch is the Director of Marketing at Clever Real Estate, the free online service that connects you top agents to save on commission. His focus is educating home buyers and sellers on navigating the complex world of real estate with confidence and ease. Andrew has worked on projects for the United Nations and USC and has a particular passion for investing and finance. Andrew's writing has been featured in Mashvisor, L&T, Ideal REI, and Rentometer.

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