logo
Discount Commission

Discount Commission Real Estate Services

by Victor Zhang • July 14, 2018

As more home sellers are learning that real estate commissions are negotiable, many firms are starting to advertise a discounted commission or fee to win over clients.

Real estate commissions are fees paid to your real estate agent or service for helping you sell your home. Typical commission rates have historically been around 5-6%, and can vary depending on the agent or service you use. As more home sellers are learning that these commissions are negotiable, many firms are starting to advertise a discounted commission or fee to win over clients. These days, common pricing structures for selling your home include traditional commissions, discounted commissions, flat fees, and tiered flat fees.

Discounted Commissions and Fees

There are two main reasons fees and commissions have been decreasing: competition and technology. As information becomes more accessible, home sellers are realizing that commissions are negotiable. This has made the industry incredibly competitive between agents, and in turn, commissions have fallen. Secondly, with the rise of real estate technology companies, processes have been optimized and scaled to a point that allow costs to decrease.

There are now many discount brokerages and online real estate services available to sell your home. Modern day real estate companies have also found ways to replace older processes such as marketing strategies when selling your home. By having processes streamlined and utilizing utilizing technology, real estate companies and brokerages can operate at a lower cost. The best part? All of this benefits you, the home seller.

Top 3 reasons to use a discount brokerage (Pros)

  1. With all the other costs associated with selling a home and moving, going with a discount brokerage means more money in your pocket.
  2. These days, more companies and brokerages are becoming discounted and full service. You’ll get all the help of a full service agent, at a discounted rate!
  3. People sometimes associate a cheaper price with cheaper quality. However, scaling back prices no longer requires scaling back service and quality. Many companies are able to offer lower prices due to technological advances and scalable business models.

Top 3 reasons not to use a discount brokerage (Cons)

  1. Some discount brokerages may not be full service, meaning you won’t get all of the services you need to sell your home from start to finish. Be sure to know what services you are getting when deciding to use a discount brokerage.
  2. Some online discounted real estate services take advantage of technology to keep their costs low, and may not offer an in-person professional to guide you. Instead, you will be aided by a remote professional. Often times, you will get the same results. At the end of the day, it depends on whether you prefer in-person help or don’t mind remote help, as long as your home gets sold.
  3. Some flat fee brokerages only offer single services such as listing your home on the MLS. Be sure to understand what services you are getting when choosing one.

Compare Discount Commission services

RedfinPurplebricksHome Bay
Redfin is a low cost full service real estate brokerage that utilizes technology to provide a premium home selling experience.
Purplebricks is a flat fee full service real estate brokerage that represents home buyers and sellers with local agents.
Home Bay helps you sell your home remotely, while taking care of the whole selling process.
View ProfileView ProfileView Profile