The current average real estate commission in the US is 5.46%. Traditional agents typically charge 6%, split between the buyer and seller. This means that on a $500,000 home, you would pay $30,000 in commission fees.
However, there are ways to save on real estate commissions. One option is to work with a 1% Realtor, who charges a 1% commission instead of the traditional 3%. Another option is a Flat Fee MLS listing service like Houzeo, which offers discounted real estate services with a nationwide reach.
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How to Choose a 1% Commission Realtor
When choosing a 1% commission realtor, there are a few key factors to consider:
- Pricing: Most discount brokerages charge a minimum fee or a 1% commission, depending on the value of your home. Make sure that this minimum fee is not so high that it takes away most of your profits from the sale of your home.
- Technology: Choose a brokerage that uses cutting-edge technology. This includes having a user-friendly website and advanced technology for marketing, data analysis, and document management. A realtor who leverages technology can provide a more efficient and effective service.
- Quality of Services: Interview multiple realtors from different companies to understand who offers the best services. Be sure to check agent reviews on platforms like Zillow and Realtor.com.
▶️ 1 Percent Commission Realtors: Need to learn more about the 1% Realtors? Check out the guide.
Benefits of Using a 1% Commission Realtor
In addition to saving money on commission fees, there are other benefits to using a 1% commission Realtor.
For example, 1% commission realtors are often more motivated to sell your home quickly and for the best possible price. They may also be more willing to negotiate on commission fees, especially if you are willing to sell your home yourself and only need their help with marketing and closing.
Why Would a Real Estate Agent Agree to a 1% Commission?
There are a few reasons why a real estate agent might agree to a 1% commission:
- Hot Seller’s Market: There is more demand for homes than supply in a hot seller’s market. This means that real estate agents have to compete more for listings. Some agents may be willing to lower their commission rates to attract sellers.
- Lack of Experience: Real estate agents may agree to lower commission rates to gain experience and build their client base.
- Luxury Properties: Luxury real estate agents often earn tens of thousands of dollars in commission, even at a low rate. For example, a 1% commission agent would earn $40,000 on a $4 million home.
Alternatives to 1% Commission Realtors
- Flat Fee MLS Companies: Flat Fee MLS companies charge a set fee to list your home on the MLS, a database of homes available to real estate agents and buyers. The fees typically range from $179 to $399. With a flat fee MLS company, you will be responsible for marketing and selling your home.
- Negotiate With Your Agent: You can negotiate a commission rate with your real estate agent. The typical commission rate is 2.5% to 3%, but you may get a discount if you are willing to sell your home in a hot market. You can also handle tasks like marketing and showing your home.
- Sell to an iBuyer: iBuyers are companies that offer to buy houses with cash using technology. iBuyers typically offer a lower price than you could get on the open market, but they can be a good option if you need to sell your home quickly.
- Sell to a Cash Home Buyer: Cash home buyers are individuals or companies that purchase homes for cash. Cash home buyers typically offer a lower price than you could get on the open market. They can be a good option if you need to sell your home quickly or if you have a home that needs repairs.
▶️ List on MLS: Check out the best ways to list your home on MLS.
Bottom Line
Using a 1% commission realtor can save you much on commission fees, especially in a competitive market. However, it is important to carefully consider factors such as pricing, technology, and service quality when choosing a 1% commission realtor. Otherwise, you may pay more in the long run.
If you want a more affordable way to sell your home, consider using a Flat Fee MLS company such as Houzeo. Flat fee MLS companies charge a set fee to list your home on the MLS, a database of homes available to real estate agents and buyers. With a flat fee MLS company, you will be responsible for marketing and selling your home, but you can save significant money on commission fees.
Houzeo is a user-friendly platform that offers expert support and transparent pricing. This can help you sell your home quickly and for the best price.
▶️ Houzeo Reviews: Check out the reviews before making a decision.
