What Is a 4.5% Real Estate Commission?

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By Ashley Simon Updated April 11, 2024

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Top 4.5% commission brands | How a 4.5% commission works | How much can I save? | FAQ

A 4.5% real estate commission is when your agent charges 4.5% of the sale price to sell your home. Most realtors charge 5–6%, so selling your home for a 4.5% commission rate could save you thousands of dollars.

For instance, if you sell a $350,000 home at a 4.5% commission rate, you could save more than $5,250 in realtor fees! Below, we'll review the best 4.5% commission real estate brokerages and provide tips about the best ways to choose a discount realtor.

But keep in mind that in today's market, it's not hard to find a company that offers a 4.5% real estate commission. In fact, many of the top brands offer rates of 4.5% (or less) along with full service and support from an agent.

Just looking for agents with discounted commission rates near you? Use our free agent matching tool to find a top agent in your area, and get a pre-negotiated listing fee of just 1.5%. Compare agents from the best discount brokerages, plus major brands like Keller Williams and RE/MAX who offer lower rates through our network.

Will the NAR lawsuit change how real estate commission works?

On March 15, 2024, the National Association of Realtors agreed to pay $418 million in damages to settle a real estate commission lawsuit the industry group lost in November 2023. 

While the full impact of the settlement is yet to be determined, experts believe that the change will eventually lead to lower buyer's agent commissions and give buyers the ability to negotiate those commissions based on the services they need. 

The terms of the settlement are scheduled to take effect in mid-July 2024. But, the settlement hasn't been officially approved yet, and it could be delayed or changed by objections. We'll continue to monitor the status of the settlement and the effects it has on the real estate industry.

» READ MORE:

The best companies that offer a 4.5% commission (or less!)

Brand Listing fee Locations
🥇 Clever Real Estate 1.5% (min. $3,000) Nationwide
🥈 Redfin 1.5% (min. fees vary) Nationwide (select markets)
🥉 SimpleShowing 1% (min. fees vary) FL, GA, TX
4. Ideal Agent 2% (min. $3,000) Nationwide
5. Prevu 1.5% (min. fees vary) CA, CO, CT, MA, NY, PA, TX, WA
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1. Clever Real Estate

Clever Real Estate

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💲 Listing Fee

1.5% (min. $3,000)

💰 Avg. Savings

$5,625

⭐ Avg. Customer Rating

5/5 (2,735 reviews)
✍️ Editor's Take
Pros
Cons
Reviews
Locations

Clever is a quick, easy, and free way to find a top-rated local agent. And, unlike many similar companies, Clever pre-negotiates big discounts on your behalf, so you can save thousands without sacrificing on service. Try Clever for free — save thousands on commission.

  • Clever offers a free, nationwide agent-matching service that partners with full-service local agents from conventional brokerages like Keller Williams, Century 21, and RE/MAX.
  • You get multiple agent matches so you can interview, compare marketing plans, and choose the best fit.
  • Clever pre-negotiates low rates on your behalf — you get full service for a low 1.5% listing fee.
  • If you buy with Clever, you could get cash back after closing.
  • You may not get matched with an agent from your preferred real estate brokerage.
  • Agents may not provide premium services like drone photography and professional home staging.

Clever has a 5.0 out of 5 rating on Trustpilot, based on 2,672 reviews.

Read reviews from real Clever customers.

Clever has pre-negotiated low commission rates with top agents in all 50 states and Washington, DC.

Unlike most companies on this list, Clever Real Estate isn't a discount real estate brokerage. We're a free agent matching service that negotiates 1.5% listing fees with the agents in our network.

Our goal is to make it fast and easy to find the best agent for your sale. You tell us what you're looking for, and we handpick top local realtors who are a good fit. It takes only a few minutes to sign up and start getting matches.

We help you compare your options, set up interviews, and choose who to hire. If you don't like the agents we match you with, you can request more — or simply walk away.

You get a 1.5% listing fee no matter who you choose, so you don't have to worry about the price tag. Instead, you can focus on finding an agent with the experience, track record, and personality you're looking for.

💰 Compare hand-picked agents, get incredible savings

Find top-rated agents from local brokerages and get a pre-negotiated 1.5% listing fee.

Clever's service is 100% free, with zero obligation. Interview as many agents as you like until you find the perfect fit — or walk away at any time.

2. Redfin

Redfin

Full Review

💲 Listing Fee

1.5% (min. fees vary)

💰 Avg. Savings

⭐ Avg. Customer Rating

2.9/5 (331 reviews)
✍️ Editor's Take
Pros
Cons
Reviews
Locations

Redfin offers real savings and is a proven brand. But sellers could compromise on service — especially agent experience and availability.

Read the full Redfin review.

  • If you buy and sell with Redfin, you'll get a 0.5% listing fee discount.
  • Redfin gives its listings premium placement in its popular home search app.
  • If finding the right agent is a top priority, you'll have limited options Redfin only has a few agents in each of its markets.
  • Redfin agents handle more customers at once than the average realtor, so they may not be able to provide as much personalized service.

Redfin has a 2.9 out of 5 rating (331 reviews) across popular review sites like Google and Yelp.

Read reviews from real Redfin customers here.

Redfin is available in 80+ U.S. markets (see all locations).

Redfin is a national discount brokerage with in-house agents who charge 1.5% commission for full-service listings.

Redfin sellers typically pay 4-4.5% in total commission when they offer a competitive buyer's agent fee. But, when you both sell and buy with Redfin, the company lowers the listing fee to 1%, bringing your total commission rate to 3.5-4%.

Working with Redfin vs. a traditional realtor can save you thousands of dollars, but you should be aware of the trade-offs. To make up for the reduced commissions, Redfin agents handle many more transactions than a traditional realtor each year. This extra volume could limit the agent's ability to provide dedicated support throughout your sale.

3. SimpleShowing

SimpleShowing

Full Review

💲 Listing Fee

1% (min. $3,500)

💰 Avg. Savings

⭐ Avg. Customer Rating

4.9/5 (340 reviews)
✍️ Editor's Take
Pros
Cons
Reviews
Locations

SimpleShowing’s commission savings are solid — but you may compromise on agent selection and hands-on service.

Read the full SimpleShowing review.

  • SimpleShowing is one of the only true 1% commission companies.
  • It also offers one of the largest home buyer rebates of any low-fee brokerage.
  • You have very few options when it comes to selecting your agent.
  • Agents handle more customers than the average realtor, which could impact service quality.

SimpleShowing has a 4.9 out of 5 rating (340 reviews) across popular review sites like Google, Trustpilot, and Zillow.

Read reviews from real SimpleShowing customers here.

SimpleShowing is available in the following areas: FL, GA, TX.

SimpleShowing is a discount brokerage offering 1% listing fees for a total commission of 3.5-4%.

SimpleShowing is a relatively small brokerage operating in select markets in Florida, Georgia, and Texas. It offers genuine savings, but you might have a hard time finding an agent that's a good fit thanks to their limited number of agents. If you do, you may still have to sacrifice some hands-on support throughout the sale. SimpleShowing agents handle 20–25 transactions each year — nearly double the volume of a traditional realtor.

4. Ideal Agent

Ideal Agent

Full Review

💲 Listing Fee

2% (min. $3,000)

💰 Avg. Savings

⭐ Avg. Customer Rating

4.9/5 (6,997 reviews)
✍️ Editor's Take
Pros
Cons
Reviews
Locations

Ideal Agent can match with a great agent from a traditional brokerage. But its 2% listing fee makes Ideal Agent a lot more expensive than other full-service discount brands.

Read the full Ideal Agent review.

  • You'll get a full-service agent from a traditional brokerage.
  • It's free to request an agent match, and you can walk away at any time.
  • Ideal Agent costs more than most other full-service, low commission companies.
  • You'll get matched with only one realtor — most similar services recommend multiple agents so you can compare your options and pick the one you like best.

Ideal Agent has a 4.9 out of 5 rating (6,997 reviews) across popular review sites like Google and Trustpilot.

Read reviews from real Ideal Agent customers here.

Ideal Agent is available to home sellers nationwide.

Ideal Agent is a discount real estate brokerage that offers a 2% listing fee. The company is known for matching home buyers and sellers with high-quality agents, and it's highly rated by customers. 

Ideal Agent has strict criteria for its agent network. It only chooses agents who are in the top 1% of producers in their markets. However, this exclusivity has some drawbacks.

Ideal Agent's network is small compared to other discount brokerages. While some companies, like Clever, send you multiple agents, Ideal Agent matches you with only one. You might have a harder time finding the right fit, especially in small or rural markets.

Also, Ideal Agent's commission rate isn't as competitive as other discount brokers'. If you want the best deal, look for companies with a 1% or 1.5% rate.

» MORE: How to Choose a Realtor to Sell Your Home

5. Prevu

Prevu Real Estate

Full Review

💲 Listing Fee

1.5% (min. fees vary)

💰 Avg. Savings

⭐ Avg. Customer Rating

5.0/5 (594 reviews)
✍️ Editor's Take
Pros
Cons
Reviews
Locations

Prevu offers solid commission savings for buyers and sellers. But at certain price points, other discount brands may offer better value.

Read the full Prevu review.

  • Prevu's 1.5% listing fee saves sellers an average of compared to a standard 3% commission rate.
  • Eligible buyers get a commission rebate worth up to 2% of the home price.
  • High minimum fees may limit your savings if you're selling a lower-priced home.
  • Prevu has a small team, which limits your options if you don't hit it off with the first agent it sends you.

Prevu has a 5.0 out of 5 rating (594 reviews) across popular review sites like Google and Yelp.

Read reviews from real Yelp customers here.

Prevu is available in the following areas: CA, CO, CT, MA, NY, PA, TX, WA.

Prevu offers home sellers full-service support for a 1.5% listing fee. But the company has high minimum fees that could leave you paying a much higher effective commission rate if your home is less expensive.

However, if you do qualify for a 1.5% rate, you'll only pay 4-4.5% total commission when you offer a competitive buyer's agent commission. For sellers with high-value properties in one of its markets, Prevu offers great savings. But everyone else can find more value from other discount brokerages.

What's the average real estate commission?

Average real estate commission rates vary by market, but in most places, you pay 5–6% of your home's final sale price. Half of that commission goes to your listing agent, half to the buyer's agent. However, situational factors may lead to a higher or lower real estate commission.

"My team usually asks for compensation in the range between 5% and 6% of the sales price," says realtor Cynthia Cummins, who has three decades of experience in real estate. "Yet, it's important to note that commissions are always negotiable and there's no set fee."

Cummins notes that a lot of factors can influence her actual commission rate. "I almost always offer a lower rate for repeat and past clients," she says, "whereas I'll ask for a larger commission when a listing promises to be particularly complicated ([like] … hard-to-sell properties [and] tenant-occupied properties)."

"Every home listing is different," says Ken Sisson, an associate real estate broker with Coldwell Banker in Los Angeles. "I may choose to lower my commissions if I feel a property is going to be easier to sell. Conversely, I probably wouldn’t lower my commissions on a home I feel is going to require more resources and expense to get it sold."

How much can I save with a 4.5% commission rate?

Reducing your total commission to 4.5% could save you thousands of dollars on realtor fees compared to the typical 6% realtor fee. For example, on a $400,000 home, you'd save as much as $6,000 in realtor fees.

Here's a breakdown of how much you can expect to save based on your home price.

» MORE: How to find the best low commission realtors

How does a 4.5% real estate commission work?

A 4.5% real estate commission typically comes from working with an agent or brokerage that charges a 1.5% listing fee, compared to the traditional 2.5–3% commission that most agents charge.

In most real estate transactions, the commission is taken out of the home seller’s proceeds and split between the two real estate agents involved in the sale:

  • The listing agent, who advertises the property for the seller
  • And the buyer's agent, who brings their client to purchase the property

In a conventional transaction with a 6% fee, each agent collects 3% of the home's sale price.

Agents offer a reduced commission to help them attract more sellers in a competitive market. When shopping for a real estate agent, make sure you choose one who won't cut corners on service in exchange for a lower rate.

👋 Get a better agent AND bigger savings

Why pay more in commission fees for less service? Clever offers you bigger savings without sacrificing the service you expect from a traditional realtor.

With Clever:

 ✅ You'll only pay 1.5% to list your home

 ✅ You'll work with a full-service realtor from a top broker

 ✅ It's free, with zero obligation — you can walk away at any time

Saving on realtor fees doesn't have to mean sacrificing service. Find a top local agent today!

Why does the buyer's agent fee stay the same?

As a seller, you'll still need to pay a competitive buyer's agent commission (around 2.5–3%, depending on your market). If you offer a low (or no) buyer's agent commission, agents will be less likely to bring qualified buyers to your property.

This fee is an incentive for buyer's agents to "sell" your home to their clients.

If you take away that incentive, your property will likely drop on most agents' priority lists. Instead, they'll point their clients to nearby homes that offer a competitive agent fee.

» MORE: Do sellers pay buyer's agent commission?

Other ways to get a 4.5% real estate commission

Aside from selling with a low commission real estate agent, there are a few other ways to lower your total real estate commission to 4.5%, such as looking into a 2% commission realtor. You can also try to negotiate a lower fee with your agent, or you can hire a limited-service real estate agent.

Negotiate a lower commission with your listing agent

It's possible to talk a traditional realtor into a lower commission, but getting them to cut their fee in half will be tough.

Agents pay for a lot of expenses out of their own pockets when they list a home — plus, they split their commission with their broker. If they lower their listing fee from 3% to 1.5%, they could actually lose money on the sale.

That's a risk many aren't willing to take. Still, you could have a shot at negotiating a lower commission if you check one or more of these boxes:

  • You're selling an expensive home
  • Your area has high buyer demand
  • There's a lot of competition among agents in your area
  • You agree to buy and sell with the same agent or brokerage

» MORE: How to negotiate a realtor commission

Hire a limited-service real estate agent

Some listing agents charge a 1-2% commission but offer fewer services and less support to their clients.

Many limited-service agents use an a la carte pricing structure. Instead of paying for an all-or-nothing listing package, a la carte pricing lets you pick and pay for only the services you want the agent to handle — you'll take care of everything else.

Experienced sellers who are comfortable managing portions of their own sale could save a lot of money by taking this route, sometimes paying even less than 1% commission to their listing agent.

But keep in mind that you'll have to invest a lot more time and energy into the sale than you would if you hired a full-service realtor.

» MORE: What is a limited service real estate agent?

👉 Jump back to the best 4.5% commission companies

Alternatives to paying a 4.5% real estate commission

You don't have to use a real estate agent to sell your home. There are several options that offer more control, convenience, or speed compared to a traditional realtor — but each option comes with its own trade-offs.

Best savings | Most flexible | Most convenient | Fastest way to sell

Best commission savings: For sale by owner (FSBO)

You can handle the entire process yourself (and avoid any listing fees) by selling your home for FSBO.

You might choose FSBO if:

  • You want to avoid paying a listing fee entirely
  • You're confident you can handle the entire sales process yourself
FSBO isn't for you if:

  • You aren't comfortable negotiating contracts or handling closing on your own
  • You aren't sure what your home's listing price should be
  • You don't have the time to manage everything on your own
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» MORE: How to sell your house for sale by owner

Most flexible option: Flat fee MLS companies

Flat fee MLS companies list your home on the multiple listing service (MLS) — an agent-only local listings database — for a low fee.

You might choose a flat fee MLS company if:

  • You're committed to selling FSBO but want your home to be as visible as possible to buyer's agents
  • You want to avoid the negative stigma of FSBO while still handling the sale yourself
Flat fee MLS companies aren't for you if:

  • You need more guidance and assistance from a listing agent than a simple MLS listing
  • You plan on purchasing a lot of à-la-carte add-ons that can drive up the cost to nearly the same as a full-service realtor
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» MORE: The best flat fee MLS listing services

Most convenient choice: iBuyers

iBuyers, like Opendoor and Zillow Offers, use technology to make all-cash offers on homes within specific markets.

You might choose an iBuyer if:

  • You don't want the hassle of listing your home on the open market
  • You're fine paying hefty service fees (usually 5–15%) to get an all-cash offer within 24–48 hours
iBuyers aren't for you if:

  • You live in a rural area or a city where iBuyers don't operate
  • Your home is older and doesn't meet an iBuyer's strict criteria for properties it would purchase
  • Your biggest priority is saving money on realtor fees
Show more

» MORE: What is an iBuyer?

Fastest way to sell: 'We buy houses for cash' companies

"We buy houses for cash" companies make all-cash offers on nearly any home, no matter its condition.

You might choose a "we buy houses for cash" company if:

  • You need to sell your property quickly, no matter the price
  • Your property is either distressed or difficult to sell
  • You don't have the resources or desire to get your home ready for the open market
"We buy houses for cash" companies aren't for you if:

  • You hope to get market value for your property
  • Your home is in good enough condition to sell on the open market
  • You have the time and opportunity to sell using another option
Show more

» MORE: Everything you need to know about "we buy houses for cash" companies

FAQ about 4.5% real estate commission

How much can you save with a 4.5% commission realtor?

You can save thousands of dollars on real estate commissions by working with a 4.5% commission realtor. The exact amount will depend on the price of your home.

Traditional real estate commissions are generally around 5–6% of the final sale price of your home — so you'll save around 0.5–1.5% by working with a 4.5% commission realtor.

This can translate to big savings, especially if you're selling an expensive home. For example, on a $500,000 home, you'd save around $7,500 with a 4.5% commission realtor. Find the best 4.5% commission brokerages near you!

What are the best 4.5% commission real estate brokers?

Our top picks among 4.5% commission real estate brokerages are Clever Real Estate and Redfin. Both are nationwide companies that provide the best combination of low rates, hands-on service, agent selection, and overall value for sellers. Other regional brokerages, such as SimpleShowing or Reali, may be a good choice for sellers in those specific areas, but they offer a more limited selection of agents.

Can you negotiate real estate commission? 

You can always technically negotiate real estate commissions, but it can be difficult to talk a traditional realtor into reducing their fee. If you're selling an expensive home in a high-demand area, or if you're willing to buy and sell with the same brokerage, you may be able to convince your realtor to lower their fee. For most sellers, though, the best way to save on realtor fees is by working with a low commission brokerage.

What percentage do most realtors charge?

Most realtors charge 2.5–3% in real estate commissions. Sellers are responsible for paying a commission to two agents: the listing agent and the buyer's agent. In most traditional transactions, this will bring your total commission to 5–6%. But there are many discount brokerages that offer lower commission rates to sellers. Learn how to save on realtor fees without sacrificing hands-on service!

Keep learning

Authors & Editorial History

Our experts continually research, evaluate, and monitor real estate companies and industry trends. We update our articles when new information becomes available.

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