Reasons Why Low Commission Real Estate Agents are Best.

real estate agent

Low commission real estate agents are those who charge the lowest commission in the market. When you are in the real estate market, and if you want to get the best deal, then you need to work with an agent. All real estate agents charge a commission which is a percentage of the total amount involved.

It is natural that you do want to save money, which is why it makes sense to look for low commission real estate agents. You may have a question about how these agents charge a low commission. Do they voluntarily accept lesser money? Do they offer fewer services than others?

The answers to all these questions are discussed here. We’ll tell you what you want to know about these low commission real estate agents. We’ll also list the reasons why you should choose the top real estate agents who work on low commission rates.

Who are low commission real estate agents?

 Let’s start with the basics by understanding who are low commission real estate agents and what they do.

Most real estate agents charge around 6% as commission. So, if your house is being sold for $500,000 you need to pay $3,000 as the commission to the agent. The higher the value of the home, the more the commission. This is a significant sum of money and most sellers and buyers would want to reduce the commission.

This has led to the growth of low commission agents. They are real estate agents who charge a lower commission than other agents in the market. They may charge anywhere from 3% to 4.5% as their commission, which is nearly half that of other agents. This helps home sellers and buyers save a lot of money in commission.

Here are a few things to know about the top real estate agents who work on low commissions:

  • Low commission agents are recognized, as real estate agents. They would have a license and would be members of the relevant associations.
  • They offer a lower commission rate than others to help home buyers and sellers save money.
  • Since they get a lower commission, they look at volume to increase their business. Low commission agents would get more deals since they charge less. The increase in the volume of their sales helps them to make more money.
  • It must be noted that they offer the same kind of services as regular real estate agents. They do not offer fewer services or lesser quality services because they charge less.
  • They are reputable agents who would have a standing in the market.
  • Some low commission agents even work on a flat fee. This means they charge the same fee for all clients irrespective of the sale price of the home.
  • Some agents offer a range of services and indicate their fees. Depending on the kind of services you want, you will be charged the commission. This gives the freedom to sellers to choose the services they want to reduce the commission.

It must be noted that the low commission is charged to the seller’s agent. The buyer’s agent would probably demand the usual fee. If the same agent handles both transactions, then both the buyer and seller can get the benefit.

Reasons to choose low commission agents

 1) Helps you save money

The principal reason for choosing a low commission agent is that you save money. You will need to pay a 6% fee as a commission, which is a sizeable amount. The higher the home value, the more the commission to be paid. Any amount saved is beneficial and homeowners would definitely look for savings.

When you work with low commission agents, you can be assured of getting a discount on the commission. These are savings that matter. The main reason you should look for a low commission agent is to save money.

There are different types of models that low commission agents follow. Each of these models is beneficial in its own way:

  1. Low commission: Here, the commission agent offers a discount on the commission. The lower commission translates to higher savings.
  2. Flat rate: The agent would charge a flat rate for the services offered. The rate is the same whatever is the value of the home. This works out very well if your home price is high.
  3. Hybrid model: In this model, you have the option to choose the services you want. Based on the services chosen, the fee is decided.
  4. 2 for 1 model: If you have more than one home to sell, the agent charges a lower commission fee for the first home. This is charged on the assurance that you will sell the second home also through the same agent.
  5. Only listing: In this service, the agent does not offer any services other than listing in the MLS. They would charge a very low fee for this.

2) Streamlined work process

Since low commission agents charge lesser, they need volume to get more business. As a result, they tend to work more quickly. They have access to agent resources and a streamlined work process that ensures transactions are completed quickly. This is beneficial for sellers.

Low commission agents offer all the basic services needed by home sellers. Nothing is left out but at the same time, all extraneous elements are removed. They don’t waste time doing unnecessary things or following unwanted procedures. They will do their best to prevent the sale from prolonging. This is a major benefit that explains why you should look for low commission agents.

3) Working with a motivated agent

The top real estate agents who work on a low commission basis tend to be aggressive. They work more efficiently than others. This is because the more business they do, the more they can earn. Working with such a motivated agent ensures you get to sell your house faster.

4) Freedom for sellers

You have the freedom to choose the services you need. If you work with agents who work on the hybrid model, you get to decide which services you want. This gives you the freedom to get the work you want at the best possible fee.


In the United States, a standard full commission, the full-service listing agent charges a 6% commission to the seller. Under the most prevalent compensation structure, the listing agent distributes the 6% commission with the buyer’s agent 50/50. Low commission real estate agents are professionals who charge a little less than the traditional real estate agent. Use this guide to learn the reasons, why Low Commission real estate agents are the best.


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