What Is a 4.5% Real Estate Commission?

Trevor Wallis

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Trevor Wallis

June 24th, 2022
Updated June 24th, 2022

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

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 even lower rates than 4.5% along with full service and support from an agent.

With Clever Real Estate, for example, you'll get a listing fee of just 1%, so your total realtor commission will be just 3.5-4%. And because Clever's Partner Agents offer full service and come from top brands — like Keller Williams and RE/MAX — you won't make any sacrifices in terms of quality. Get matched with an agent today and save thousands!

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

Brand
Listing fee
Locations
1% or $3,000
Nationwide
🥈 Redfin
1.5% (min. fees vary)
Nationwide (select markets)
1% (min. fees vary) (min. fees vary)
FL, GA, TX
4. Door
1.5% (minimum $5,000)
TX
1.5% (min. fees vary)
CA, CT, MA, NY, PA

1. Clever Real Estate

Clever Real Estate

Clever Real Estate

Learn More

💲 Listing Fee

$3,000 or 1%

💰 Avg. Savings

$7,375

⭐ Avg. Customer Rating

4.9/5 (1,995 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 flat $3,000 listing fee, or just 1% if the home sells for more than $350,000.
  • If you buy with Clever, you could get a check worth up to 0.5% of the home price.
  • 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 4.9 out of 5 rating on Trustpilot, based on 1,844 reviews.


Read reviews from real Clever customers here.

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

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Clever Real Estate is the best option for most home sellers because it provides the biggest savings along with best-in-class services. Sellers who work with Clever are paired with local real estate agents from well-known brokerages like Berkshire Hathaway, Coldwell Banker, and Keller Williams.

Clever pre-negotiates 1% listing fees (or $3,000 for homes under $350,000) with these top local agents. When you sell with Clever, you'll get full service and support from a highly-rated agent — and you'll pay 3.5-4% in total commission.

You may be wondering how Clever is able to offer these lower rates. The reason is that Clever helps realtors reduce the amount of time and money they typically spend finding new clients. Client acquisition is a big expense for most realtors, so the fact that Clever takes on the work of finding clients represents big savings for agents. Those agents can then pass on those savings to you without sacrificing service.

You can try Clever for free without any obligation. Interview as many local agents as you want and choose the one that best fits your needs — or walk away any time.

💰 Compare hand-picked agents, get incredible savings

Find top-rated agents from local brokerages, and get pre-negotiated listing fees of just $3,000 or 1%.

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

💲 Listing Fee

1.5% (min. fees vary)

💰 Avg. Savings

$5,550

⭐ Avg. Customer Rating

3.7/5 (301 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 3.7 out of 5 rating (301 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).

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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 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.

» MORE: Is Redfin right for you? Here's what you need to know.

3. SimpleShowing

SimpleShowing

SimpleShowing

Full Review

💲 Listing Fee

1% (min. $3,500)

💰 Avg. Savings

$6,375

⭐ Avg. Customer Rating

4.9/5 (335 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 (335 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.

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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.

» MORE: Everything you need to know about SimpleShowing

4. Door

Door Real Estate

Door Real Estate

Full Review

💲 Listing Fee

1.5% (min. $5,000)

💰 Avg. Savings

$4,825

⭐ Avg. Customer Rating

4.8/5 (438 reviews)

✍️ Editor's Take
Pros
Cons
Reviews
Locations

Door Real Estate's fees are too high to justify the hands-off support. Other discount options offer better service for the same price or less.


Read the full Door Real Estate review.

  • Door's 1.5% listing fee is cheaper than selling with a traditional agent
  • Sellers save an average of $4,825 compared to a standard 3% commission rate
  • Door agents provide no in-person support
  • Sellers can find better service (and bigger savings) with other low commission companies

Door has a 4.8 out of 5 rating (438 reviews) across popular review sites like Google and Zillow.


Read reviews from real Door customers here.

Door is currently only available in Texas.

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Door is a discount real estate brokerage offering 1.5% listing fees to home sellers in Texas, allowing you to sell your home for 4-4.5% total commission when you offer a full buyer's agent commission.

While Door's savings are legit, it handles your entire transaction remotely. Not getting any face-time with your listing agent is a big downside that should make you think twice about working with Door, especially when other discount brokers offer lower rates and better service.

» MORE: Does Door really save sellers money?

5. Prevu

Prevu Real Estate

Prevu Real Estate

Full Review

💲 Listing Fee

1.5% (min. fees vary)

💰 Avg. Savings

$2,450

⭐ Avg. Customer Rating

5.0/5 (449 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 $2,450 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 (449 reviews) across popular review sites like Google and Yelp.


Read reviews from real Yelp customers here.

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

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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.

» MORE: Who should sell with Prevu (and who shouldn't)

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

Reducing your total commission to 4.5% could save you thousands of dollars 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.

Home price
4.5% commission savings*
$200,000
$3,000
$350,000
$5,250
$500,000
$7,500
$750,000
$11,250
*Compared to a standard 6% commission rate

» 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.

The savings from a 4.5% real estate commission often come by working with a listing agent who accepts a 1.5% listing fee. Offering this reduced commission helps the agent attract more sellers in a competitive market.

There are more agents vying for your business than ever before. All this competition among listing agents shakes up longstanding pricing norms (like the 3% listing fee) and puts more money in your pocket when you sell your home.

💰 Sell with Clever for LESS than 4.5%

Selling for 4.5% is great, but Clever has pre-negotiated even better rates with realtors from top brokerages like Berkshire Hathaway and Keller Williams.

  • When you find your agent through Clever, you get the same full-service experience for a fraction of the typical cost: a flat $3,000 listing fee — or just 1% for homes over $350,000.
  • Clever sellers save an average of $9,000 and get offers 2.8x faster than the national average.

Try our free, no-obligation service to find top local agents — and never pay full commission again!

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% 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.

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

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 tradeoffs.

👉 Jump to: 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.

» 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 a la carte add-ons that can drive up the cost to nearly the same as a full-service realtor.

» MORE: What you need to know about flat-fee MLS listings

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.

» 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.

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

Keep learning

FAQs about 4.5% real estate commission

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!

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.

Real estate commissions are always technically negotiable, 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.

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!

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