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 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.
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.