Discount Real Estate Agents: Are They Worth It?
Discount agents offer listing services at reduced commission rates, typically 1-2% instead of the traditional 2.5-3%. With several national brands and local options available, the question is whether the savings come at the cost of service quality.
Discount Agent Savings
$5K-$15K
on a $400K home compared to traditional agent commissions
How Discount Agents Work
Discount agents reduce their commission by operating more efficiently: higher volume, less personalized service, and technology-driven processes. Some offer full service at lower rates, while others provide a menu of services where you pay for what you need.
Major Discount Brokerages
- Redfin: 1.5% listing fee with full-service support
- Ideal Agent: Connects you with agents at pre-negotiated 2% rates
- Clever Real Estate: Matches you with agents at 1.5% listing rates
- Homie: Flat-fee model in select markets
Pros and Cons
Pros: Meaningful commission savings, professional MLS listing, still get an agent
Cons: Less personalized attention, potentially less marketing budget, may handle more listings simultaneously
When to Use a Discount Agent
Discount agents work well in hot markets where homes sell quickly, for homes in the median price range that do not need extensive marketing, and for sellers who are comfortable handling some aspects of the sale themselves.
The Bottom Line
Discount agents can save 1-1.5% in commissions while still providing professional service. In strong markets, the trade-offs are minimal. Compare exact savings with our calculator.