A 2% commission realtor could save you thousands of dollars on your home sale. These realtors reduce your commission by charging a 2% listing fee instead of the traditional 2.5–3%.

In this article, we break down the best realtors and brokers that charge a 2% listing fee — or even less. Read on to find out how much each brand costs, what customers think, and where they're available.

Top brokerages that offer a 2% real estate commission (or less)

Company	Clever Rating	Listing Fee	Availability
Best overall Semya-Moya	4.8	1.5% (min. $3,000)	Nationwide	Learn More
Ideal Agent	4.5	2% (min. $3,000)	Nationwide	Learn More
UpNest	3.5	2.2–3% (market rates)	Nationwide	Learn More
Redfin	4.5	1.5% (min. fee varies)	Nationwide (select markets)	Learn More
Prevu	4	1.5% (min. fee varies)	CO, DC, FL, MA, MD, NJ, NY, TX, VA, WA	Learn More
SimpleShowing	4	1% (min. $5,000)	FL, GA, TX	Learn More

Best overall

Semya-Moya

Learn More

On listwithclever.com

4.8

Listing Fee

1.5% (min. $3,000)

Customer Rating

5/5 (2,940 reviews)

Editor's Take

Overview

Locations

Semya-Moya is the best option for most sellers looking for an agent. The company matches you with multiple experienced, full-service agents so you can find the right fit, and it offers a low 1.5% listing fee no matter which agent you choose.

Find top agents near you today!

Pros

• You get matched with top-producing local agents in minutes.
• You get a 1.5% listing fee (about half the usual rate).
• Clever's network of 19,000 agents offers great selection compared to similar services like Ideal Agent and UpNest.

Cons

• There’s no guarantee you’ll get matched with a specific local agent or brokerage.
• Add-ons like professional home staging and drone photography may cost extra (agents will let you know exactly what’s included during listing presentations).

Semya-Moya offers a lower commission without sacrificing quality. Through its free service, you can find top-rated agents in your area and sell for just a 1.5% listing fee (much lower than the average realtor commission rate).

How it works: You take a short online quiz (five questions) to help Clever understand your situation and preferences. Then Clever matches you with vetted agents in your market who are a good fit. If you don’t like the agents Clever recommends, you can request more matches until you find the right fit — or simply walk away.

Why it’s great: You can use Clever to compare top-producing local realtors from major brands like Compass, Century 21, and Coldwell Banker. Each realtor in Clever’s network has agreed to offer lower commission rates, which lets you focus on choosing the best agent instead of worrying about the price. You get the same savings no matter what.

Clever is available nationwide.

Good agents, but limited choice

Ideal Agent

Learn More

On listwithclever.com

4.5

Listing Fee

2% (min. $3,000)

Customer Rating

4.9/5 (6,254 reviews)

Editor's take

Overview

Locations

Ideal Agent is a solid option if you’re looking for a top agent. The company vets its realtors thoroughly, so you’ll likely get a quality agent. But you won't save as much on realtor fees as you could with other companies.

Pros

• Agents are vetted and meet strict performance criteria.
• The 2% listing fee is lower than the traditional rate.
• Customer service gets excellent reviews.

Cons

• You likely won't get to choose which agent you work with.
• There are no savings for buyers and limited savings for sellers.
• There's limited ability to manage your listing online.

Ideal Agent is a real estate company that matches buyers and sellers with real estate agents.

Compared to similar companies, Ideal Agent has some of the strictest performance criteria for the agents it lets into its network. This vetting process means you're more likely to be matched with a top agent, although it also means there are fewer agents overall to choose from.

The company also offers a discounted listing fee of 2% (min. $3,000) compared to the 2.5–3% that realtors traditionally charge.

While Ideal Agent’s primary service is agent matching, the company also has a cash buyer program. With this program, Ideal Agent solicits multiple cash offers for your home from various investors. While you’re unlikely to make as much as you would selling on the open market, a cash buyer provides the convenience of a fast closing.

Ideal Agent is available nationwide.

Good for comparing options, but limited savings

UpNest

Learn More

On listwithclever.com

3.5

Listing Fee

2.2–3% (market rates)

Customer Rating

4.6/5 (6,641 reviews)

Editor's take

Overview

Locations

UpNest lets you choose from multiple vetted agents, so there’s a good chance you’ll find a realtor that fits your needs. But it falls short on savings and customer service.

Pros

• Agents are vetted and are usually top performers.
• You get to choose from multiple agents.
• The online dashboard is easy to use.

Cons

• Realtor fees are only slightly lower than traditional rates.
• Customer service is difficult to reach.
• The quality of customer service is spotty.

UpNest is an online platform that helps home sellers and buyers find a real estate agent.

The company is unique because it claims its agents compete for your business. In theory, that should lead to lower realtor fees, but in reality, the savings are minimal at best. Each agent determines their own fees, but the typical listing fee is around 2.2%.

When you sign up for UpNest, you’ll get proposals from multiple vetted agents, usually within a day. Each proposal includes the agent's fees and services. You can request more agent matches or walk away anytime.

Note that UpNest’s customer service representatives are often difficult to reach and sometimes have a poor understanding of realtor services.

UpNest is available nationwide.

Great savings, but some risks

Redfin

Learn More

On listwithclever.com

4.5

Listing Fee

1.5% (min. fee varies)

Customer Rating

2.9/5 (331 reviews)

Editor's take

Overview

Locations

Redfin’s 1.5% listing fee is much lower than the traditional 2.5–3% rate, so the company can save you a lot of money when selling. If you also buy with Redfin, you could save even more. But its service model comes with risks.

Redfin agents handle a lot of clients, and they don’t always have time to provide as much hands-on service as you may need. At different stages of your sale, you’ll be handed off to another member of the Redfin team. This service model creates opportunities for errors and miscommunication.

Also watch out for minimum fees, which vary by market and can be high in some areas.

Pros

• Redfin's low listing fee of 1.5% offers excellent savings.
• Clients who buy and sell with Redfin can save even more.
• You can easily manage your listing online or via Redfin’s app.

Cons

• Agents provide limited one-on-one service.
• Customer reviews have recently become more negative.

Redfin is a discount real estate brokerage that offers a listing fee of 1.5% — about half of what realtors traditionally charge. If you buy and sell with Redfin, you can get a 0.5% rebate, bringing your listing fee down to 1%.

The company can offer these savings because of its team-based service model. Various members of the Redfin team handle different stages of the transaction, which allows agents to take on a high volume of clients. With this model, Redfin agents tend to provide less one-on-one service than traditional realtors.

Redfin is one of the largest brokers in the country, operating in 100 major cities across the US and Canada. But it has almost no coverage outside of large cities.

Redfin is available in major cities in most states, except ME, MT, ND, SD, VT, WV, and WY.

Best for buyers in high-end markets

Prevu

Learn More

On listwithclever.com

4

Listing Fee

1.5% (min. fee varies)

Customer Rating

5/5 (465 reviews)

Editor's take

Overview

Locations

Prevu offers savings for both buyers and sellers, but it offers the most value for buyers of high-value properties. Its buyer rebate of up to 2% is substantial, although the full 2% is only available on properties over $1.25 million.

Sellers can also save thanks to Prevu’s 1.5% listing fee — about half the traditional rate. But the company charges minimum fees that vary by market. If your home doesn’t sell above a certain threshold, minimum fees mean you’ll save less — and you could even end up paying more than you would with a traditional realtor.

Pros

• Eligible buyers get a rebate of up to 2%.
• Sellers can save with the 1.5% listing fee.
• The company offers significant savings on high-value homes.

Cons

• Only homes over $1.25 million qualify for the full 2% buyer rebate.
• Minimum fees undercut seller savings.
• Prevu has a small agent network, which means you could get stuck with a lackluster realtor.

Prevu is a discount brokerage that connects buyers and sellers with agents. The company advertises a buyer rebate of up to 2% and a 1.5% listing fee for sellers. However, minimum fees and other requirements mean many customers won’t qualify for these advertised rates.

Prevu is still a relatively small company with a limited pool of in-house agents. Because there are fewer agents, customers may not be able to change agents.

Like at some other discount brokerages, you may receive less one-on-one support from Prevu than you would with a traditional realtor. Prevu agents take on a lot of clients, which leaves them with less time to provide personalized attention to each buyer and seller.

Prevu is available in select markets in CO, DC, FL, MA, MD, NJ, NY, TX, VA, and WA.

Great seller savings, but high minimum fees

SimpleShowing

Learn More

On listwithclever.com

4

Listing Fee

1% (min. $5,000)

Customer Rating

5/5 (336 reviews)

Editor's take

Overview

Locations

If you're selling a home over $500,000 and live in a city where SimpleShowing agents are available, you'll likely receive great savings and service.

SimpleShowing’s 1% listing fee is among the lowest of any discount brokerage, but the company has high minimum fees. You'll get the maximum savings if you sell a home over $500,000. Below that amount, you'll end up paying more than 1%.

Customer reviews of SimpleShowing are quite positive, and the company is responsive to any customers who have a poor experience. The main drawback of the brokerage is that it's only available in a handful of cities in Florida, Georgia, and Texas.

SimpleShowing also offers a generous home buyer rebate compared to other low commission realtors. Eligible buyers can receive up to 1% back in closing credits. But the actual amount you receive may be less depending on your home price, the number of showings you request, and the commission paid to the buyer's agent.

Pros

• You get a 1% listing fee on eligible homes.
• Eligible buyers get a 1% closing credit.
• The company receives positive reviews from customers.

Cons

• If you sell a home under $500,000, you pay more than 1% for the listing fee.
• Buyer savings are subject to many terms and conditions.
• Agents are only available in a few select cities.

SimpleShowing is a regional discount brokerage that advertises a 1% listing fee for sellers and a refund of up to 1% for buyers.

Both savings are subject to numerous terms and conditions, so many customers won’t qualify for the full savings. Sellers need to sell for at least $500,000 to qualify for the 1% listing fee.

Like some other discount brokerages, SimpleShowing has its agents handle a high volume of clients to keep costs low. The company also has different SimpleShowing employees handle different stages of your transaction. This is unlike a traditional brokerage, which assigns one realtor to handle most of the transaction.

SimpleShowing is available in the following metro areas:

• Florida: Fort Lauderdale, Miami, Orlando, Tampa
• Georgia: Atlanta
• Texas: Dallas

How 2% realtor commissions work

In a traditional real estate transaction, both the listing agent and the buyer's agent earn a 2.5–3% commission fee, bringing the total rate to about 5–6% of the sale price. Working with a 2% commission realtor lowers the total commission fee to around 4.5–5%.

When you get a 2% real estate commission rate, the savings typically come from a listing agent accepting a reduced fee.

This 2% real estate commission rate doesn't include the buyer's agent fee. Most listing agents will recommend that you offer the buyer's agent a standard rate — typically 2.5–3%, depending on your market.

How 2% realtor commissions compare to the average

The national average commission rate for listing agents is 2.72%, though it varies by location.

As a home seller, you typically cover the commission for both your listing agent and the buyer's agent, so the total commission you pay is actually 5–6%. With a 2% commission realtor, you pay only 4.5–5% total — which could save you thousands of dollars.

Here's an example of listing commissions (also called listing fees) in different states.

Find average real estate commission rates near me

Interested to know the average commission rate in your area? Find your region in the table below to learn what realtors charge in your state or city:

Can you negotiate a 2% commission?

You can always negotiate with agents on your own. A 2% real estate commission isn't much lower than the 2.5–3% average commission rate that most traditional agents charge, so you may be able to find a local realtor willing to sell your house for a reduced rate.

» MORE: How to negotiate realtor commission

Why use a 2% realtor?

Hiring a realtor who charges a 2% commission rate can help you save thousands of dollars when selling your home.

On a $500,000 home sale, you could save $2,500–5,000 by paying a 2% listing fee versus the typical 2.5–3%. Those savings can add up, especially if you plan to move frequently or invest in real estate over your lifetime.

There are also some trade-offs to consider.

Some 2% commission brokers rely on team-based models, charge high minimum fees ($8,500+ in some areas), or don't offer full service. Even though their rates seem appealing, you could lose more than you save if you need to hire extra help or if you sell for thousands less without proper representation.

The key is vetting brokerages carefully, asking lots of questions upfront, and making sure the 2% commission realtors in your area offer responsive support, quality service, and transparency around additional fees.

Who should use a 2% realtor?

Most home sellers can benefit from working with a vetted full-service realtor who charges a 2% listing fee (or less). 

These low commission realtors are a great option if you want to save on commissions while still getting complete service and support from your agent. They also provide peace of mind for first-time sellers who want an expert guide during their transactions.

However, 2% realtors may not be the best fit if you’re selling a low-value property. Some low-fee brokers charge minimum commissions that could exceed a 2% rate on inexpensive homes, negating potential savings. It's important to calculate costs based on fine print details before choosing a discount realtor.

How to find and choose a 2% realtor

To choose the best 2% commission realtor, compare local brokerages for overall value. Interview agents from 2–3 brokerages to find the best fit for your priorities and budget.

When evaluating your options, pay close attention to each company's pricing, service model, and reputation.

Use a discount or low commission brand

The easiest way to get a guaranteed 2% real estate commission is to work with a discount brokerage. These companies offer reduced listing fees of 1–2% compared to the conventional 2.5–3%.

Look for full-service discount brokers that provide all the same services, guidance, and representation as traditional realtors — just at a lower rate.

👉 Jump to the best full-service brokerages that offer a 2% commission (or less!)

Other ways to get a 2% fee (or less)

Outside of discount brokerages, there are a few other ways you can reduce your real estate commission rate:

• Try negotiating realtor fees directly. You may be able to get your agent's rate down to 2%, which is typically the lowest listing fee a traditional agent accepts. However, this route can take a lot of time, and it's important to prepare legitimate discussion points.
• Work with a limited-service agent. Some agents provide limited service for a commission as low as 1%, but you'll need to handle more selling responsibilities yourself. This option can work well for experienced sellers in hot markets.
• Use a flat fee MLS listing service. Pay an up-front flat fee of $100–400 for your home to be listed on the MLS. You'll handle showings, paperwork, negotiations, and the rest of the process. This is the cheapest option, but it's also the most time-intensive. You'll essentially sell for sale by owner.
• Sell to a company that buys houses for cash, like We Buy Ugly Houses. If you're in a hurry to sell, this option is a good choice. These companies buy properties as is, but you likely won't get top dollar for your home's value. Make sure to compare multiple offers to maximize your sale price. You can compare offers on your own, through an agent, or through a free service like Clever Offers.

Next steps

If you want to connect with vetted 2% commission agents in your area, Semya-Moya makes it fast and easy.

Clever's free platform instantly connects you with full-service, top-rated realtors from major national and local brokerages like Century 21, RE/MAX, and Coldwell Banker. You can compare as many options as you'd like, or you can walk away at any time — there's no obligation to move forward with an agent.

Our dedicated Concierges are fully licensed real estate agents, and they can provide you with advice on how to get the best outcome for your sale or purchase. Fill out the short form below to start reviewing recommendations!

FAQ about 2% commission realtors

About our recommendations for 2% commission real estate brokers

The Clever Team filtered and ranked the top low commission real estate brokerages based on the following criteria: 

1. Service level: We only ranked full-service discount real estate brokerages, since they're the best option for most home sellers. These brokerages deliver the same essential services a traditional realtor provides, including in-person representation, showing assistance, and closing support.
2. Pricing: We reviewed the fee structures of each company, cross-referencing current commission rates and home values to determine what companies offer the best overall value. We also identified hidden fees, high minimums, and up-front fees that could detract from overall seller savings.
3. Customer reviews: Verifiable customer reviews were integral to our evaluation. We considered various factors, including the total volume of reviews, average customer ratings, key positive and negative themes, and the relevance of these reviews to prospective customers making decisions today.
4. Sales activity: We examined available data regarding past transactions to gauge sales performance and activity levels in the market. We looked at the number of transactions and their recency to confirm each brokerage was still active. 

Keep learning

Want to learn more about discount brokerages, working with a low commission real estate agent, or another aspect of the home selling process? We've put together the following guides to help you during your real estate journey:

The Best Low Commission Realtors (2023 Broker Rankings)

Find the best low commission real estate agents and brokers, so you can sell with a full-service realtor and save thousands on commission fees!

Discount Real Estate Brokers: How to Find a Top Realtor for Less

Working with a local discount real estate broker can put thousands of dollars back in your pocket when you buy or sell a house. Here's how to find them!

Negotiating Realtor Fees: 11 Expert Tips to Reduce Commission

Like most things in real estate, your listing agent's commission is negotiable. This is our expert guide to negotiating realtor fees.

Current Average Realtor Commission Rates

Looking for average real estate commission rates by state? We surveyed U.S. realtors and crunched the numbers to find accurate data for all 50 states.

The post The Best 2% Commission Realtors of 2024 appeared first on Semya-Moya.

Is the typical 6% commission still fair today?

What's a fair listing fee?

• You're selling a more expensive home compared with the median home price in your area.
• You're prepared to list your home at a reasonable price based on your agent's recommendation.
• You're located in a good neighborhood where comparable homes are selling quickly.

• Comparable properties in your suburb or neighborhood are also offering a higher commission rate than average.
• You want to list with an exclusive or luxury brokerage that charges premium rates.
• You're selling a plot of land at a cheap price or in a low-demand area.

The Best Low Commission Realtors (2023 Broker Rankings)

Find the best low commission real estate agents and brokers, so you can sell with a full-service realtor and save thousands on commission fees!

What's a fair buyer's agent fee?

When a traditional 6% commission is still fair

What makes a commission rate fair?

• The price of your home
• How easy (or difficult) your home will be to sell
• Whether you'll conduct multiple transactions with the same agent
• Your location and market conditions

Home price is the biggest determining factor

Average home prices in your area will affect your negotiating power

Realtors consider how easy your home will be to sell

Agents may charge less to repeat customers

Location and market conditions also play a role

Realtors are more likely to negotiate during a seller's market

Realtors are less likely to negotiate during a buyer's market

How to get a fair commission rate

Negotiate a fair rate with your agent

Work with a low commission realtor

FAQs about fair commission

Related reading

The Best Low Commission Realtors (2023 Broker Rankings)

Find the best low commission real estate agents and brokers, so you can sell with a full-service realtor and save thousands on commission fees!

Discount Real Estate Brokers: How to Find a Top Realtor for Less

Working with a local discount real estate broker can put thousands of dollars back in your pocket when you buy or sell a house. Here's how to find them!

How to Find a Real Estate Agent That's Right for You

This guide on how to find the best real estate agent is packed with useful tips and information, based on hundreds of hours of research and expert interviews.

Negotiating Realtor Fees: 11 Expert Tips to Reduce Commission

Like most things in real estate, your listing agent's commission is negotiable. This is our expert guide to negotiating realtor fees.

The post What's a Fair Commission For a Real Estate Agent? appeared first on Semya-Moya.

Redfin seems to be phasing out its rebate program.[6]

This program, the Redfin Refund, offered rebates to eligible buyers after closing. The actual amount varied based on home price, location, and other factors, but generally was around $1,500.

However, Redfin's main website no longer mentions the Redfin Refund. Under "Why buy with Redfin?", it advertises its in-house mortgage company.

In addition, multiple sellers reported getting an email from Redfin that stated it no longer offers the Redfin Refund. The company said it's investing in services like its mortgage company instead.[7][8]

We recommend contacting your local Redfin office to find out if it still offers a Redfin buyer rebate.

Our #1 alternative to the Redfin buyer rebate

If you're counting on cash back when you buy, you still have options, like Semya-Moya.

Clever matches you with top local agents from major brands like Keller Williams or Century 21. You receive the same services you'd get from a traditional buyer's agent, including real-time MLS alerts, on-demand showings, and support with negotiations and paperwork.

If you buy in a qualifying state, you also receive $250 in Clever Cash Back to help with your move. If you buy and sell with Clever, you receive $500.

Clever Cash Back is available in 42 US states. Buyers in the following states aren't eligible: Alabama, Alaska, Kansas, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee.

Where are rebates like the Redfin Refund offered?

To start, there are eight US states that don’t allow home buyer rebates from any real estate agent. These are Alabama, Alaska, Kansas, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee.

Further, to qualify for a Redfin buyer rebate, you must work directly with a Redfin agent. If they refer you to a Redfin Partner Agent, you cannot get a refund.

This is important because Redfin only operates in about 80 US markets.

Outside of its normal coverage area, Redfin will connect you with a Partner Agent instead of a regular Redfin agent to help you buy a home. Redfin will also refer you to a Partner Agent if:

• There aren’t Redfin agents in your area
• The current agents are busy
• Your home is below their minimum price requirement

In these cases, you won’t be able to work with a Redfin agent and won't be eligible for a Redfin buyer rebate.

Am I eligible for a Redfin Refund?

The Redfin Refund doesn’t apply unless the buyer’s agent commission is at least 1% or $6,500, whichever is higher. Because buyer’s agents often receive a commission of 3%, you’d need to buy a home for at least $216,666 before you qualify for a refund.

Sometimes, Redfin agrees to receive only 2% as a buyer’s commission. That means you’d need to buy a home that is $325,000 before the commission hits the threshold. In many areas, Redfin doesn’t offer service on lower-priced properties at all.

That’s a lot of house to buy, especially if you’re a first-time buyer.

Lender approval

Further, home buyer rebates are subject to lender approval. If you receive a rebate before closing, it effectively reduces the overall purchase price of your home. Lenders use this number to calculate the loan-to-value ratio of your mortgage, so a rebate could impact your financing.

Because of this, some lenders may prohibit or limit how much of a rebate you qualify for. Always talk to your mortgage provider before moving forward on a purchase.

The bottom line is that Redfin rebates are tricky to qualify for, with multiple factors impacting your final savings.

How much is a Redfin buyer rebate?

Many Redfin listings show a specific refund amount for that home. Redfin claims that the average rebate is around $1,500, though it will depend on the price of the home and other factors.

However, Redfin rebates are not guaranteed. In the fine print on Redfin's website, the company notes that refund amounts are subject to qualifications and may fluctuate according to a variety of factors.

That means there’s no way to know exactly what refund you’ll get if you use Redfin.

Find Redfin Refund alternatives

When you buy with a Clever partner agent in an eligible state, you’ll get cash back. Unlike rebates, these refunds are guaranteed in full since they're paid out after closing.

FAQ about Redfin buyer rebates

Related articles

Home Buyer Rebates: Get Cash Back When You Buy!

You can get cash back when you buy a home if you receive a home buyer rebate. We'll show you where they're available and how to get one on your next purchase!

Redfin Reviews: How It Works (And Is It Really 1%?)

Is Redfin right for you? Learn how it works, what it costs, read Redfin reviews, and compare it to similar discount real estate services.

Redfin vs Zillow vs Trulia: Honestly, Which Is Best?

Comparing Redfin vs Zillow vs Trulia? We'll explain who has the most accurate home value estimates, the best real estate agents, and more.

The post Redfin's Buyer Rebate: Is It Still Active? appeared first on Semya-Moya.

1 Percent Lists is a great alternative to a traditional realtor if you’re looking to save on real estate commission. It charges a reduced 1% listing fee, which could save you thousands compared with the 2.5-3% fee most agents charge, and the low rates come with few inherent service trade-offs.

But, while 1 Percent Lists is worth considering, it may not be your best option compared to other top discount brands. Many 1 Percent Lists offices are relatively new and have few (or no) online reviews from real customers.

Most home sellers will find the best overall value with Semya-Moya. Clever charges a low 1.5% listing fee, and it matches you with top agents from well-known brokerages in your area — so you don't have to compromise on agent support.

💰 SAVE: Compare top agents, save thousands in real estate commissions!

Who should use 1 Percent Lists?

1 Percent Lists

💲 Listing fee

1% (min. fees vary)

💰 Avg. Savings

$8,000

⭐ Avg. Customer Rating

5.0/5.0 (389 reviews)

✍️ Editor's Take

Pros

Cons

Reviews

Locations

1 Percent Lists is one of the better discount real estate brokers available in the Southeast. But other companies provide more one-on-one support for a similar price.

Read the full 1 Percent Lists review.

• 1 Percent Lists offers one of the lowest listing fees on the market at 1%.
• Sellers receive full service.

• Limited agent selection may mean you have to work with an agent who isn't a good fit.
• Agents handle more customers than traditional realtors, so you may not get as much one-on-one support.

1 Percent Lists has a 5.0 out of 5 rating (389 reviews) across popular review sites like Google, Trustpilot, and Zillow.

Read reviews from real 1 Percent Lists customers here.

1 Percent Lists is available in the following areas: FL, GA, LA, MS, NC, RI, SC, TN.

If you're selling your home and 1 Percent Lists is available in your area, it's worth interviewing an agent near you to see whether they'd be a good fit. You'd save a good amount of money on listing fees and receive a similar level of support — although potentially a bit less personalized service — as you'd get from a traditional agent.

However, most sellers will find the best quality service with one of 1 Percent Lists' competitors — at the same or a comparable rate.

If you're also buying a house, we recommend going with a buyer's agent from a different brokerage. 1 Percent Lists works with home buyers, but they don't offer any major incentives for buyers. You'll likely find better value and service with a different brand — especially since some brokerages offer rebates to buyers in the form of cash-back or closing cost credits.

How does 1 Percent Lists compare to top alternatives?

1 Percent Lists is one of the better discount real estate brokers available in the Southeast, but it's not our top pick.

The brokerage advertises a 1% listing fee — a solid discount compared with the 2.5–3% fee that traditional realtors charge. It also provides most of the same services that traditional agents offer, such as an MLS listing, professional photography, and support with negotiations and closing — pretty much everything except an open house.

But 1 Percent Lists agents work with more clients than traditional realtors, so you may not get as much hands-on service and support from your agent. This shouldn't be a dealbreaker for most people, but other brands offer 1% listing fees without this drawback.

Clever offers better service for just 1.5%

Semya-Moya

Get Started

💲 Listing Fee

1.5% ($3,000 min.)

💰 Buyer Savings

Cash back after closing

⭐ Avg. Customer Rating

5/5 (2,735 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 is 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 several, compare marketing plans, and choose the best fit.
• Clever pre-negotiates low rates on your behalf — you get full service for just a 1.5% listing fee ($3,000 minimum).
• If you buy with Clever, you can get cash back to help pay for your move.

• 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.

As of 11/6/2023, Clever has a 5.0 out of 5 rating on Trustpilot, based on 2,589 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.

Semya-Moya is the best alternative to 1 Percent Lists because it charges just 1.5% to list — but still lets you work with a full-service agent from a traditional brokerage like Keller Williams or Coldwell Banker.

Clever is a free service that matches you with top agents from brokerages near you and negotiates huge discounts on commission. Clever's licensed Concierge Team will handpick multiple local agents for you, so you can compare your options and find the best fit. No matter which agent you choose, you'll get a pre-negotiated listing fee of 1.5%.

With Clever, it's easy to find a top-rated agent who's a perfect fit for your unique situation. Most 1 Percent Lists offices have a limited number of agents, so it may be harder to find a 1 Percent Lists agent with experience in your neighborhood and price range.

You can try Clever for free with no obligation. Interview as many agents as you like until you find the right match, or walk away at any time.

1 Percent Lists is less established than competitors like Redfin

Redfin

Full Review

💲 Listing Fee

1.5% (min. fees vary)

💰 Avg. Savings

$5,550

⭐ Avg. Customer Rating

2.9/5 (331 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 2.9 out of 5 rating (331 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).

Sellers who prefer to work with an established brand may feel more comfortable working with a competitor like Redfin. Its 1.5% listing fee makes it more expensive than 1 Percent Lists, but Redfin has a much longer track record.

While most 1 Percent Lists offices are only a couple of years old, Redfin has been around for nearly 20 years and sold $37 billion worth of homes in 2020 alone.[1]

Neither Redfin nor 1 Percent Lists offers as much personalized, hands-on support as you'd get with a traditional realtor. But Redfin has more than enough customer reviews to give you a pretty good idea of what to expect.

Since most 1 Percent List locations have few online reviews from actual sellers, there’s less proof that your local office is delivering on its promise of full service for a discounted rate.

1 Percent Lists reviews from real customers

We think 1 Percent Lists offers good overall value with low rates and the promise of decent service. But there aren't many 1 Percent Lists reviews online to back that up.

Altogether, 1 Percent Lists has a 5.0 out of 5.0 rating, but many offices have few or no customer reviews. And the reviews that do exist tend to comment on the quality of individual agents instead of the overall experience of selling with the brand.

A lack of online reviews doesn't mean you'll have a bad experience with 1 Percent Lists. Based on our research, we think their customer service model should be fine for most people. But many of 1 Percent Lists' competitors have been around longer and have thousands of customer reviews that provide insight into what it's actually like to work with the brand.

If you're thinking of going with a 1 Percent Lists agent, we recommend interviewing a couple more agents from different discount brokerages. Comparing your options is the best way to be confident you've found the best agent for you.

The Best Low Commission Realtors (2023 Broker Rankings)

Find the best low commission real estate agents and brokers, so you can sell with a full-service realtor and save thousands on commission fees!

What customers think about 1 Percent Lists

Here are a few reviews from real buyers and sellers who worked with 1 Percent Lists agents. Many clients highlight the good communication and service they received from specific agents, as well as the solid overall value from the company's low listing fees.

Her experience was invaluable

As with all brokerages, your personal experience with 1 Percent Lists will depend quite heavily on the quality of your agent. If your agent is professional, knowledgeable, and a good fit for your personality, you're more likely to have a great outcome.

This seller had a positive experience with their agent from 1 Percent Lists in Covington, Louisiana. They specifically call out their agent's communication and expertise, as well as the overall value of the low listing price.

Great service for a first-time homebuyer

This review comes from a home buyer who worked with a 1 Percent Lists agent in Augusta, Georgia. They felt that their agent was trustworthy, communicated well throughout the entire process, and was a great fit for them as a first-time buyer.

Again, this person's experience was largely influenced by the quality of their agent. As a buyer or seller, it's important to remember that you're hiring the agent — not the brand! Take your time to interview a few agents to find the right fit for your situation and needs.

🕵️ Look for customer reviews for your agent before you commit

If the office near you only has a few reviews, try looking up the agent individually to find old reviews from where they used to work and see what customers think.

You can google the following: Agent's full name + "real estate agent" + your city. Or look for their agent profile on a platform like Zillow, Yelp, or Realtor.com to find reviews from past customers. These websites can also help you learn more about an agent's area of expertise and find realtors in your price range.

How to Find a Real Estate Agent That's Right for You

This guide on how to find the best real estate agent is packed with useful tips and information, based on hundreds of hours of research and expert interviews.

What is 1 Percent Lists and how does it work?

1 Percent Lists is a real estate brokerage with licensed agents who can help you sell or buy a home in certain Southeastern states. Sellers who work with a 1 Percent Lists agent generally pay a reduced 1% listing fee — a little less than half of what most traditional realtors charge.

When you pay a 1% listing fee, your total commission will be around 3.5–4% after factoring in a standard buyer's agent fee.

The low rates don't come with any major service trade-offs because 1 Percent Lists creates savings in ways that shouldn't have a negative impact on the customer experience for most sellers.

👉 Jump to: 1 Percent Lists fees | How it creates savings | Locations

📍Where is 1 Percent Lists available?

1 Percent Lists has real estate agents available in the following markets:

1 Percent Lists fees and savings

As a seller, you'll spend less by working with a 1 Percent Lists agent instead of a traditional agent. The company's 1% listing fees are some of the most affordable of any full-service discount brand — and they're a huge discount compared to the 2.5–3% rate most realtors charge.

Here's what you could expect to save with 1 Percent Lists at a few different price points:

Your overall commission will be 3.5–4%, compared with 5–6% that's typical of traditional agents. You'll still need to offer a competitive buyer's agent commission, which is typically between 2.5–3%.

Ask about minimum fees

If you're planning to sell with 1 Percent Lists, make sure to ask your local office about minimum fees — especially if you're selling a lower-priced home.

Minimum fees can limit your savings at lower price points. For example, if you're selling a $200,000 home, but your local office charges a $6,000 minimum commission, you'll effectively end up paying a 3% commission — even if the company advertises a 1% listing fee.

1 Percent Lists doesn't list a set minimum fee on its corporate website. Grant Clayton, the CEO of 1 Percent Lists, told us that there are no minimum fees whatsoever. But he's said before that some offices charge minimum fees on lower priced homes.[2] Most discount brokers do have some sort of minimum fee, so just make sure to confirm pricing details with your local office before you sign a listing agreement.

How 1 Percent Lists creates savings

Like most discount brands, 1 Percent Lists operates a bit differently than a conventional brokerage. You'll still get the same general services as you would with a traditional realtor — they just might be a bit less personalized and hands-on.

Here are a few ways that 1 Percent Lists cuts costs, which allows it to charge lower rates than most traditional realtors:

Working with more clients

According to Grant Clayton, the CEO of 1 Percent Lists, agents work with roughly 5x as many clients as traditional realtors.[3] Handling more transactions allows them to still make a competitive income while offering cheaper listing fees.

Because of this, 1 Percent Lists sellers may not receive as much hands-on support as they would with a traditional realtor. The more transactions an agent is handling at once, the less time they have to devote to each individual customer. However, working with 3–5x more customers is fairly standard among discount realtors — and many agents are still able to provide solid support to their clients.

Cutting out "old-fashioned" marketing methods

1 Percent Lists agents won't hold open houses or advertise your home listing in print media. The company claims that open houses and print media are out-of-date marketing strategies that don't really move the needle for home sellers.

Instead, they focus on using the MLS, real estate listing websites, and social media to advertise your home — sharing your listings on channels like Facebook, Instagram, and YouTube to reach potential buyers. If open houses are important to you, you'll need to work with a different discount brand (or host it yourself).

No physical office space

Another differentiator is that 1 Percent Lists franchises aren't required to have physical office space — so you likely won't have an office to meet with your agent. Theoretically, the money each office saves on overhead is used to create their discounted listing fees. This cost-cutting measure shouldn't have any impact on your overall experience with the brokerage.

Selling with 1 Percent Lists

When you sell with 1 Percent Lists, you'll receive the same general range of services that you'd get with a traditional realtor, including:

• In-person valuation of your home
• Professional photos
• MLS listing
• Digital marketing
• Social media marketing
• Help with offers, contracts, negotiations
• 24/7 availability to answer questions or concerns

However, there are a few differences:

Buying with 1 Percent Lists

Like other brokerages, 1 Percent Lists can also help you buy a house. But we don't recommend using a buyer's agent from 1 Percent Lists because the company doesn't offer additional incentives the way they do for sellers.

Buyers with 1 Percent Lists will receive the same general range of services as traditional real estate agents — though you may not get as much personalized attention and support because agents handle more customers at once.

Additionally, the company doesn't advertise any incentives for buyers on their website, such as a home buyer rebate. We reached out directly, and the company told us some locations may offer buyer rebates to certain customers. But you'll need to reach out to your local office to find out whether they're available and how to qualify.

If you're interested in saving money when buying a home, other discount brokerages offer some pretty large rebates in states where refunds are allowed. As a buyer, you're not responsible for paying agent commission. So you have everything to gain and nothing to lose by taking the time to interview individual agents to find the best fit for you.

Home Buyer Rebates: Get Cash Back When You Buy!

You can get cash back when you buy a home if you receive a home buyer rebate. We'll show you where they're available and how to get one on your next purchase!

Conclusion: Is 1 Percent Lists the right choice for me?

If there's a high-quality 1 Percent Lists agent in your area, and you're okay with a bit less hands-on support, it will probably be a fine choice. But we recommend comparing your options before you make a decision.

1 Percent Lists started opening franchise locations throughout Louisiana in 2020, and only recently began expanding into different markets. Because of this, there aren't a lot of critical customer reviews about the company to provide insight into how they actually work with clients.

This doesn't mean 1 Percent Lists is a bad choice, but it could make it harder to find an experienced agent you're comfortable with — especially if the 1 Percent Lists agents in your area are newer to the industry or don't have many verified reviews on their individual profiles.

Other discount brands have a longer track record — and plenty of customer reviews to back up their service models — while offering a low 1.5% listing fee.

Whether you're selling or buying a home, there's no rush to commit to a particular company. Try reaching out to 2–3 realtors in your area, preferably from different brokerages. Interview them to find the right combination of rates, experience, and overall value for your specific situation.

FAQs about 1 Percent Lists

Methodology

To create this review, we conducted an in-depth analysis of 1 Percent Lists. This included reviewing each individual franchise location, reading hundreds of customer reviews online, compiling review data for 20 offices across five platforms (Google, Zillow, Facebook, Yelp, Realtor.com), reviewing numerous press articles about the company, and reaching out directly to the 1 Percent Lists CEO Grant Clayton to clarify their service model, prices, and additional services.

Locations and contact information

Is 1 Percent Lists available near you?

Corporate office contact information

Florida

Georgia

Louisiana

Mississippi

North Carolina

Rhode Island

South Carolina

Tennessee

Related links

The Best Low Commission Realtors (2023 Broker Rankings)

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Discount Real Estate Brokers: How to Find a Top Realtor for Less

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Semya-Moya Reviews (2024): How It Works, Pricing, and Alternatives

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Redfin Reviews: How It Works (And Is It Really 1%?)

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The post 1 Percent Lists Reviews 2022 appeared first on Semya-Moya.

Typical realtor commissions | How to save thousands on realtor fees | Why would a realtor accept a lower commission? | Are 6% commission real estate agents worth it? | FAQ

What is a 6% real estate commission?

A 6% real estate commission is when a seller pays a total of 6% in realtor fees on the sale of their home. This usually means paying 3% to the listing agent and 3% to the buyer's agent.

For example, if you sell a $500,000 home at a 6% commission rate, you'd pay a total of $30,000 in realtor fees:

Why do realtors get 6%?

A 6% real estate commission has long been considered the industry standard.

Listing agents earn their 3% for helping the seller price their home accurately, prep it and market it to potential buyers, negotiate favorable contract terms, and navigate the closing process. Buyer's agents earn their 3% for bringing a qualified buyer to the sale.

But in today's market, many sellers pay less than 6%. On average, U.S. home sellers pay 5.37% in real estate commissions.[1]

And there are ways you can pay even less — as low as 1.5% in listing fees — while still getting full service from a top local agent.

How to pay less than 6% in realtor fees

You can save on real estate commissions in several ways. The best methods allow you to pay reduced fees without sacrificing service and support from your agent.

Here are some of the most common ways to save on realtor commissions:

1. Work with a company that offers built-in savings
2. Negotiate with your agent
3. Sell your home for sale by owner (FSBO)

1. Work with a low commission realtor

The most reliable way to save money on realtor fees is by working with a real estate brokerage that offers built-in savings. The best low commission companies offer discounted listing fees in exchange for full service and support from a high-quality realtor.

For example, Semya-Moya offers a low 1.5% listing fee and matches you with top, full-service realtors in your area.

On a $400,000 home sale, you'd save $6,000 with Clever compared to what you'd pay with a 6% commission real estate agent!

You can interview as many agents as you'd like from well-known brokerages like Coldwell Banker and Century 21. Or you can walk away at any time with no obligation.

2. Negotiate realtor commission

Real estate commissions are technically always negotiable, and it's worth it to try negotiating a lower rate. Even a 1% difference can save you thousands of dollars.

That said, your realtor may not be willing to budge on commission — especially if your home is less expensive than the area average or comparable homes in your area are selling slowly. In addition, many realtors work for brokerages with set minimum requirements, so your agent may not be able to lower their commission.

» MORE: 10 tips for how to negotiate realtor commissions

3. Sell your home for sale by owner (FSBO)

You can avoid paying a listing fee by selling your home without an agent. But that means you'll handle the entire sale process yourself, including setting a listing price, marketing to potential buyers, and navigating negotiations and closing. While the potential savings are real, there are quite a few risks involved with selling FSBO.

» MORE: How to sell your house for sale by owner

How does a 6% real estate commission work?

A 6% real estate commission is typically divided 50/50 between the two agents involved in the sale: the listing agent gets 3% and the buyer's agent gets 3%.

Each agent usually splits half their commission with their brokerage, so the agents might walk away with just 1.5% each.

The seller is generally responsible for paying the entire 6% commission fee. This fee usually comes out of the sale proceeds at closing.

If the real estate agents charge you a 6% real estate commission rate, here's how much you'd pay at different home price points:

What's the average cost for a real estate agent?

Currently, the average U.S. home seller pays an average of 5.37% in realtor fees.

However, real estate commissions are not standardized or set in stone. They're negotiable, and rates can vary by state and city. To find the average commission rate in your area, check out our guide to average real estate commissions by state.

Current Average Realtor Commission Rates

Looking for average real estate commission rates by state? We surveyed U.S. realtors and crunched the numbers to find accurate data for all 50 states.

What percentage do most realtors charge?

Traditionally, realtors charge 2.5–3% of a home's final sale price for their services — bringing a seller's total commission costs to 5–6%.

Sometimes one agent earns more than the other. This typically happens when a seller negotiates a lower listing fee or offers a smaller rate to the buyer’s agent.

» MORE: What percentage do real estate agents make?

Why would a real estate agent accept a lower commission?

A real estate agent will generally accept a lower commission only if they think the payday is still worth it. Here are the most common situations where a realtor might accept a lower commission:

• You're selling an expensive home, and the agent believes it will sell quickly.
• You can provide repeat business. For example, you're willing to buy a new home with the same agent.
• The agent already charges discounted rates to attract new business.

It can be difficult for an individual to negotiate lower rates with an agent. The majority of traditional real estate agents (73%) refuse to negotiate their commission.[2] And most realtors who are open to negotiating generally won't reduce their listing fee below 2.5%.

» MORE: What's a fair commission rate for a real estate agent?

If you're looking for a bigger discount, the best way to save money and still receive full service is to work with a company like Semya-Moya.

Clever pre-negotiates a low 1.5% listing fee with top realtors from brokerages like Berkshire Hathaway and RE/MAX. These agents get new business from Clever at no up-front cost, so they can pass the savings on to you. Interview as many local agents as you want until you find the right fit — or walk away at any time with no obligation.

Should I use a realtor who charges a 6% real estate commission?

In today's real estate market, most U.S. home sellers can pay less than the full 6% commission fee. Though you may have to pay 6% if you live in a state where the average commission rate is higher, like Kansas and New Mexico.

Any top realtor provides great overall value, offering hands-on support and helping you get top dollar for your home. But you can find a high-quality realtor for a lot less than 6%. We recommend exploring your options so you can find a great agent without overpaying on commission fees.

👉 Jump to: How to pay less than 6% in realtor fees

How to choose a 6% commission realtor

The best way to find a great 6% commission realtor is by interviewing local agents from a few different brokerages. This allows you to compare your options and choose the best fit for your priorities and budget.

We recommend using an agent matching service like Clever or HomeLight to build a list of realtors to interview. These services match you with pre-vetted local agents and tailor their recommendations to your needs.

How to Find a Real Estate Agent That's Right for You

This guide on how to find the best real estate agent is packed with useful tips and information, based on hundreds of hours of research and expert interviews.

FAQ about 6% commission real estate agents

Methodology

Data on commission rates is based on a survey of 630 of our partner agents. The survey asked them to indicate the typical rates for both buyer's and seller's agents in their area.

The data on this page doesn't imply that commission rates are fixed — commissions rates are always negotiable. These figures represent estimates of what home sellers can expect to pay in real estate agent fees.

Keep learning

How to Find a Real Estate Agent That's Right for You

This guide on how to find the best real estate agent is packed with useful tips and information, based on hundreds of hours of research and expert interviews.

The Best Low Commission Realtors (2023 Broker Rankings)

Find the best low commission real estate agents and brokers, so you can sell with a full-service realtor and save thousands on commission fees!

Negotiating Realtor Fees: 11 Expert Tips to Reduce Commission

Like most things in real estate, your listing agent's commission is negotiable. This is our expert guide to negotiating realtor fees.

Best 1 Percent Commission Realtors across the US

Selling your home with a 1% commission realtor can save you thousands, but what's the catch? Read on to learn where to find a 1% listing fee and what you'll get in return.

The post 6% Real Estate Commission Explained appeared first on Semya-Moya.

In real estate, a listing fee is the fee a seller pays their real estate agent out of the proceeds from the sale of their home. It's sometimes called a listing agent commission or a seller's agent commission.

The average listing fee is 2.79% of the final sale price. The exact amount varies depending on your location, market, and the rate you negotiate with your realtor.

The listing fee usually makes up half of the total real estate commission. The other half goes to the buyer's agent. As a seller, you'll pay the listing commission after your home sells — but the percentage of the fee is set when you sign a listing agreement with your agent.

» SAVE: Find your perfect agent, sell for just 1.5%

How much does a listing fee cost?

The listing fee, or listing agent commission, usually ranges from 2.26–3.29% of the final sale price of your home. Here's how that breaks down for homes at different price points.

Your actual listing fee will vary depending on where you live, current market conditions, and your realtor.

» MORE: Listing Agreements: Read This Before You Sign

Typical total real estate commission

According to our data, the average real estate commission cost is 5.50% (ranges from 4.53–6.48%).

» MORE: Average Real Estate Commission Rates by State (2021)

Can I lower my listing fee?

JUMP TO SECTION

• 1. Negotiate the listing fee
• 2. Sell your home for sale by owner
• 3. Work with a low-fee commission brokerage
• 4. Use a 1% commission real estate agent

You can save money on your listing fee in a few ways. You can try to negotiate the fee on your own, though many agents may be unwilling or unable to lower their commission fee. You can sell your house for sale by owner and list your home on the Multiple Listing Service (MLS) for a flat fee through certain companies.

Another option is to work with a discount brokerage, such as Semya-Moya. Clever pre-negotiates low commission fees with top local agents. You'll receive full service from a traditional real estate agent.

1. Negotiate the listing fee

You can always negotiate with a real estate agent, because there's no law dictating how much of a commission you must pay to realtors. But not all real estate agents are willing to negotiate.

As an individual seller, you probably won't bring repeat business to the realtor. Agents are more likely to negotiate if they know they'll receive repeat business, because they can rely on volume to make money, even if they earn less per sale.

Another reason it may be difficult to negotiate is because lowering the listing fee can reduce the agent's financial incentive to sell your home. Many realtors owe part of their commission to a brokerage, and lowering their rate can mean that they'll earn significantly less once they've paid the brokerage.

You may have better success negotiating a listing fee if homes are selling quickly in your area. This means the agent will probably spend less time marketing your home, making a lower listing fee still worth their while.

If homes are taking forever to sell, the agent likely won't want to lower their rate. A local agent can help you determine how hot or cold your market is.

You may also have more success negotiating a listing fee if you're willing to forgo some aspects of marketing or pay for it yourself (e.g., staging, drone photography, etc).

Even if you save on the listing fee, you'll still have to pay commission to the buyer's agent. This gives agents the incentive to show your home to potential buyers.

» MORE: How Much Are Realtor Fees For Selling a House?

2. Sell your home for sale by owner

If you sell your home for sale by owner (FSBO), you won't need to pay a listing fee. But, you'll still need to pay the buyer's agent commission fee (usually 2.27–3.19% of the final sale price of your home).

As a FSBO seller, you can list your home for free in a few places:

• Craigslist
• Facebook Marketplace
• ForSaleByOwner.com
• Trulia
• Zillow

You can also put a For Sale By Owner sign in your yard and spread word of mouth. However, you'll need to pay a fee to list on the MLS.

It's also important to consider the possible losses you'll suffer by not working with an agent. In 2020, for sale by owner homes sold for about 26% less than homes sold by an agent. While you might save 2.26–3.29% by avoiding a listing fee, you could lose that several times over by listing on your own.

» MORE: 16 Best For Sale By Owner Websites (2021): Read This BEFORE You Sell

Flat fee MLS companies

Flat fee MLS companies allow you to list your home on the MLS for a flat fee. The model replaces the 2.26–3.29% listing commission with a flat fee, usually $100–500.

If you go with a flat fee MLS company, you'll have to market your home yourself. You may be able to upgrade to a higher pricing tier for additional services like marketing pictures of your home, for sale signs, etc.

» MORE: Flat-Fee MLS Listings: Find the BEST Services Near You

Are there listing fees to post your home on Zillow?

It's free to list your home on Zillow if you're selling your home for sale by owner. But, you'll probably get a lot of calls from real estate agents who will try to convince you to let them represent you in the sale of your house.

» MORE: Is it Worth it to List My Home on Zillow?

3. Work with a low-fee commission brokerage

Another way to save money on your listing fee is by working with a discount brokerage. Look for a full-, medium-, or limited-service company.

Full-service discount brokerage

A full-service discount brokerage will give you a discount on the realtor commission, and you'll still get a traditional realtor experience. You'll work with an agent who will help you set a listing price, market the home, and list on the MLS.

Some examples of full-service discount brokerages include Clever, Redfin, and Ideal Agent. These services can offer as low as a 1% listing fee, compared to the average listing fee of 2.79%.

💰 SAVE: Find a top real estate agent and save thousands on realtor fees

Medium-service discount brokerage

You'll likely get a bigger discount on commission with a medium-service discount brokerage. But you won't get the same level of service or support from a real estate agent.

You may not have a dedicated agent to help you at a medium-service discount brokerage, or you may only receive virtual support. These services range from 1.1–2.5% listing fee.

Limited-service discount brokerage

Limited-service discount brokerages often operate with several tiers of service. Fees are usually flat-rate and range from $95–2,999 or more, depending on the level of service you choose.

The cheapest level of service generally allows you to list your home on the MLS. For a higher rate, you may receive limited remote support from an agent.

Limited-service companies usually provide extremely minimal service and benefits, leaving you responsible for navigating most of the real estate process. They often have high fees for extra services, which can cancel out any savings you might receive.

» MORE: The Best Low Commission Real Estate Brokers

4. Use a 1% commission real estate agent

Some agents or brokers will list your home for 1% of the sale price, instead of the traditional 2.26–3.29%. You'll still have to pay the buyer's agent commission (2.27–3.19%). So your total commission will usually be around 3.5–4%, instead of 5.50%.

Some 1% commission agents scale back their services to offer this lower fee, while others simply work with more clients to make up for the lower rate. Ask your agent what services they offer.

» MORE: What is a 1% Commission Realtor?

What am I paying for with a listing fee?

The listing fee is paid to the seller's real estate agent, so the fee covers all the realtor's services. Expect to receive the following services when you use a real estate agent.

Marketing

Your listing agent will help you find a buyer for your home by providing a range of marketing services.

Your realtor will list your home on the multiple listing service (MLS). The MLS is a private listing service, and it's only accessible to licensed real estate agents.

Agents will often provide professional photography and yard signs. They'll also tap into their networks, including other real estate agents, to find potential buyers for your home.

The realtor's experience

Realtors are familiar with the rules, pitfalls, and expectations that come with selling a house. They'll be able to help you navigate through tricky situations, such as if an appraisal comes in too low.

Your realtor has likely been working in this industry for years. According to a 2020 study by the National Association of Realtors, the median experience of a real estate agent is eight years.

Realtors use their experience, training, and expertise to help you make informed decisions. For example, if you receive multiple offers on your home, your agent should be able to guide you through each offer to maximize the value of your deal.

Network

Many realtors have trusted relationships with title companies, professional photographers, other realtors, landscapers, interior designers, and more. These kinds of relationships often take years to build.

By using a real estate agent, you'll have access to a wide range of professionals in the community — and you won't have to worry about shopping around for the right professional on your own.

Negotiation

Your realtor will negotiate on your behalf when you're navigating the complicated world of real estate contracts. Negotiating a real estate deal comes down to much more than the dollar amount. Realtors can also help with contingencies, repairs, appraisals, timing, and more.

Your realtor can also negotiate on your behalf with the buyer's agent to settle on a price and terms that you're happy with.

Market research

Most realtors do market research to set a listing price for your home. They use data from homes that have sold recently to determine the best price.

Some of this data is publicly available, such as recently sold properties found on Zillow. But many real estate agents also have insider knowledge of what goes on in other transactions in the area that may impact pricing. Perhaps there was an off-market sale, a buyer made an all-cash offer, or a seller agreed to make a large repair.

Direct access to your agent

When you use a realtor, you'll receive one-on-one attention and dedicated service from a single agent.

Selling a home is a huge process, and it's something most people will only do a handful of times during their lifetime. That's why it's so important to have a real estate agent on hand to answer your questions every step of the way.

» MORE: Seriously, What Is a Listing Agent?

Average real estate fees when selling a house

The listing fee is just one of the costs that come with selling a home. Usually, sellers pay 8.4-13.4% of the sale price of their home in fees, with an average cost of 10.7%.

Numbers are approximations based on national averages. Total costs: $44,000, or 11% of the sale price for this house.

Real estate commission

Your real estate commission is generally about 5.50% of the final sale price of your home. This includes the listing fee and the buyer's agent fee.

The exact cost will depend on several factors, including your location, the market, and the percentage you negotiate with your agent.

Home inspection

As a seller, you're responsible for paying for a home inspection. A home inspection generally costs between $300–500, though the exact cost varies depending on your location, the size of your home, and the age of your home.

Seller's closing costs

Closing costs for sellers are usually around 2% of the final sale price of the home. These costs include:

• Attorney fees
• Escrow fees
• HOA fees
• Property taxes or transfer taxes
• Title insurance

Though it's rare, in a buyer's market, the seller may be asked to cover some of the buyer's closing costs.

Other costs to keep in mind

Depending on where you're moving to, you'll likely need to budget for moving costs. The average cost of a local move is $1,400, and that price rises to $2,200–5,700 for long-distance moves (anything over 100 miles).

Think about the costs you may face before putting your home on the market, such as cleaning (national average of $165), repairs (national average of $11,981), or temporary housing during any more invasive repairs (national average of $161 per night).

In rare cases, you may have to pay capital gains tax. This tax applies if you've lived in your home for less than two years or if you're making a large profit on the home sale. You can exclude profit up to $250,000 if you're single, and $500,000 if you're married — as long as the home was your primary residence for two of the last five years.

» MORE: What Does It Cost to Sell a House?

Frequently asked questions about real estate listing fees

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Do Buyers Pay Realtor Fees?

Buyers don’t typically pay their realtor’s commission—but they’ll still encounter fees and expenses beyond a home’s sale price.

How Much Are Realtor Fees For Selling a House?

If you have questions about realtor fees — What’s a commission? Who pays it and why? How do I avoid paying full price? — this in-depth guide is for you.

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Real estate agents typically get paid a percentage of a home's sale price — this is called realtor commission. Read on for more details on how realtor commission works.

The post What Is a Listing Fee? (And How to Save!) appeared first on Semya-Moya.

Qualifying for a mortgage | Affordability by monthly payment | Different types of home loans | Factors that will affect your budget | How much house to buy | FAQs

On a $70,000 income, you'll likely be able to afford a home that costs $280,000–380,000. The exact amount will depend on how much debt you have and where you live — as well as the type of home loan you get.

In this article, we breakdown all the aspects of home affordability if you have a $70,000 annual income. To talk with a financial expert about your situation, click the link below to navigate to SmartAsset's quiz and get matched with a pre-screened advisor today.

💰 GET STARTED: Get matched with a pre-screened financial advisor and start saving for your home purchase today!

How much mortgage can I qualify for?

The 28/36 rule used by many finance experts states that your monthly mortgage payment shouldn't be higher than 28% of your gross monthly income. Your total debt shouldn't exceed 36% of your monthly income.

Many lenders use this rule too. They want to see housing expenses below 25–28% of your monthly pre-tax income and a total debt-to-income ratio below 33–36%.[1]

How to calculate your debt-to-income ratio

Your debt-to-income (DTI) ratio looks like this:

Total monthly debt ÷ Gross monthly income = DTI ratio

1. Add up your monthly debt payments to get your total monthly debt.
2. Determine your gross monthly income. This is the amount of money you make in a month before taxes and deductions.
3. Plug in the numbers to the equation above and convert the total to a percentage. That's your debt-to-income ratio!

Here's an example of how it works:

In this case, we calculated Joni's gross monthly income by taking her yearly income and dividing it by 12 (70,000 ÷ 12 = 5,833).

Her debt-to-income ratio calculation looks like this: 450 ÷ 5,833 = 0.077 = 7.7%.

» MORE: A Step-by-Step Guide to the Home Loan Process

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How much house can I afford based on monthly payment?

With an income of $70k, your monthly gross income (pre-tax) is about $5,833. Your monthly mortgage payment (including HOA fees, taxes, etc.) should not be more than $1,633. And your total monthly debt payments — including car loans, credit card payments, etc. — should not exceed $2,099.

On a $70,000 income, here’s the total house payment you can afford to pay every month based on different levels of debt.

Keep in mind that you should have enough money saved to cover all your expenses for 3–6 months. This nest egg should be in a bank account where you can easily access it in case of an emergency, not in an investment account.

How much you should have saved when buying a house

What should I do if I have too much debt to afford a house?

Focus on paying down your debt, tackling high-interest loans first. Don't rush into buying a house, even if you can technically afford it on paper.

Create a budget, and track your spending so you know where your money goes every month. Make a plan to get your monthly debt payments (including mortgage) below 36% of your income.

Avoid spending more than 28% of your monthly income on home expenses. This could leave you "house poor," with little cushion to save for unexpected emergencies and to afford a comfortable lifestyle.

What are the different types of home loans?

You can choose from two basic types of mortgages: conventional and government-backed.

A conventional mortgage is any loan not insured by the federal government, while government-backed mortgages are guaranteed by the government.

» MORE: How Much Will My Mortgage Payment Be?

Conventional mortgages

There are a few different types of conventional mortgages. These loans aren't backed by the federal government, and they're a good choice if you have a solid credit score.

In most cases, conventional loans don't require you to put down the traditional 20% down payment. You can pay less than 20% up front. Most lenders, however, will require you to carry private mortgage insurance (PMI) until you have 20% equity in your home.

» MORE: A Home Equity Definition You'll Actually Be Able to Understand

Fixed-rate loan

This is the most popular type of conventional mortgage. You can choose between a 30-year or 15-year loan.

With a fixed-rate loan, the interest rate will not change over the lifetime of the loan. Depending on current mortgage rates, a fixed-rate loan may be higher or lower than an adjustable-rate mortgage loan (ARM). Either way, your rate will be locked in for the duration of the loan.

Adjustable-rate mortgage loan

An adjustable-rate mortgage is a loan with a generally low up-front interest rate, but the rate can change over the lifetime of the loan.

This type of loan may look attractive up front, but it can be volatile and risky. There's no cap to how high your interest rate may go! It's generally best for homeowners who don’t plan to stay in their home for a long time.

» MORE: Adjustable-rate Mortgages vs. Fixed-rate Mortgages: How to Choose?

Jumbo loan

Jumbo loans are for homes that are too expensive for a conventional mortgage loan, such as million-dollar homes. Of course, buying a million-dollar home is likely not in the stars on a $70k income.

Jumbo loans aren't backed by the Federal Housing Administration (FHA) and are best for buyers looking for an expensive home or who have a large income ($97,500 or above).

Jumbo loans are generally for homes above $548,250.[2]

» MORE: How to Afford a Million Dollar Home

Government-backed mortgages

A government-backed mortgage loan is a good alternative if you have poor credit or face other circumstances that may exclude you from qualifying for a conventional mortgage. It's also a good choice if you want to put less money down without paying for private mortgage insurance.

To secure a government-backed mortgage, you'll need to meet specific eligibility requirements.

Federal Housing Administration (FHA) Loan

FHA loans allow you to buy a home with a 3.5% down payment and a credit score starting in the upper 500s. These fixed-rate loans are insured by the FHA and are often used by first-time homebuyers.[3]

If you have a credit score below 620 and you're struggling to secure a conventional mortgage, an FHA loan can be an excellent way to go.

» MORE: 6 FHA Mortgage Requirements for Home Buyers

Veterans Administration (VA) Loan

If you've served in the National Guard or the armed forces, consider looking into a Veterans Administration loan. VA loans can allow veterans to purchase a home at a lower interest rate and with no down payment.

According to a 2020 study from the National Association of Realtors, VA loans are slightly more common among repeat buyers.[4]

United States Department of Agriculture (USDA) Loan

A USDA loan allows those who qualify to buy a home with $0 down and at a low interest rate. These loans are designed for people in low-income, rural areas. But the eligibility requirements are rather loose, so you may be surprised to find that you qualify.

The USDA's definition of "low-income" depends on the median household income where you live. If you live in a high cost of living area, you may be eligible on a $70,000 income.

The USDA's definition of "rural area" is also rather lenient — so you may qualify even if you live in a small town or suburb.

» MORE: USDA Rehab Loans: What Are They and How to Apply

8 factors that will affect your budget for buying a home

An income of $70,000 will look very different in New York City compared to Cleveland. Location plays a huge role in determining your budget for buying a home, and so do a number of other factors such as your interest rate, property taxes, and potential HOA fees.

JUMP TO SECTION

• 1. The interest rate on your home loan
• 2. Your credit score
• 3. The size of your down payment
• 4. The length of your mortgage
• 5. Property tax
• 6. Insurance
• 7. HOA fees, if applicable
• 8. And last but probably most importantly: location!

It can be confusing to figure out property taxes and interest rates on your own. By working with a realtor, you'll get the expert help you need to find the right house within your price range.

👋 MORE: Compare hand-picked agents, get incredible savings

1. The interest rate on your home loan

When you get a mortgage through a lender, you'll pay interest on that loan.

Interest rates fluctuate every day, and the rate you qualify for will depend on a number of factors including timing, your credit score, and your debt-to-income ratio.

As of today, rates for a 30-year fixed mortgage are 6.99000%.

What’s the difference between an interest rate and APR?

An annual percentage rate (APR) includes the extra fees you will need to get the loan, such as broker fees, discounts, and closing costs.[5] The interest rate, on the other hand, only refers to the interest on the loan.

Because it includes the extra fees, an APR will almost always be higher than the interest rate.

» MORE: What is the mortgage interest rate?

2. Your credit score

Whether you’re applying for a conventional loan or a government-backed loan, lenders will look at your credit score when determining whether to approve you for a loan.

For a conventional loan, each lender has their own criteria. But in general, you will need a FICO score of at least 620.

For an FHA loan, you'll need a credit score of 580 or above to qualify for a low down payment: meaning you can buy a house and only put down 3.5%. If your credit score is below 580, you may still qualify for the loan, but you’ll have to put down 10%.

For a VA loan, you'll typically need a score of 620 or above to qualify.

The USDA does not require a minimum credit score for a USDA loan, so this will be determined by the lender. But in general, you'll need a FICO score of at least 640.

Mortgages to consider by credit score

How to check your credit score for free

You can check your own FICO score for free once a year via AnnualCreditReport.com.

This site will lead you through requesting a credit report from each of the three main credit reporting agencies: Experian, Equifax, and TransUnion.

Usually, you’re allowed to check your credit score once a year for free. But as of August 2021, due to COVID-19, the big three agencies are offering free weekly credit reports.

3. The size of your down payment

You're generally required to put down 20% of the cost of the home for a conventional mortgage. If you're purchasing an investment property, many lenders will require you to put down 25%.

If you put down less than this, you'll usually need to get private mortgage insurance (PMI) — unless you're getting a government-backed loan like a VA, USDA, or FHA loan.

Size of down payment by home price

If you're a first-time homebuyer, you may qualify for certain down payment assistance programs. Look at this list provided by HUD of local home buying programs in your state.

Another great way to offset these upfront costs is through Clever's Cash Back program.

4. The length of your mortgage loan

The length of your mortgage loan will impact a couple of things: your monthly payment, and how much interest you pay over time.

30-year vs. 15-year mortgage loan payments

As you can see, your monthly payment for a 30-year loan is significantly lower than the 15-year loan. But you'll end up paying $33,597 more in interest over the lifetime of the loan.

» MORE: What are some popular loan options for first-time home buyers?

5. Property tax

Property taxes vary by city and county. In areas with high property taxes, your monthly tax bill can be as much as one-half of your mortgage payment.

To get an idea of how much your property tax bill will be, find your state on the map above. Then multiply the value of the home you're interested in by your state’s tax rate.

For example, let's say you want to buy a $250,000 condo in Illinois. The median tax rate in Illinois is 2.27%, so your annual tax bill will likely be around $5,675. (250,000 x 0.0227 = 5,675).

Divide this number by 12 to get your monthly payment: 5,675 ÷ 12 = $473.

As you can see, in states with a high property tax rate, your monthly tax bill can be steep. However, property tax rates are calculated differently depending on where you live in the state and the assessed value of the property.[9]

Deductions and exemptions can also reduce your tax burden. While the numbers above can give you a general idea of how much to budget for taxes, the exact figure will depend on your specific circumstance.

» MORE: The Top 10 Cheapest States to Buy a House in 2021

6. Insurance

In order to secure a loan, you'll need to show proof of homeowner's insurance. Home insurance protects your home and property from things like natural disasters, theft, and liability.

On average, home insurance costs $104 per month, or $1,249 annually.[10] The cost varies depending on where you live and the size of your home.

You may also need to carry private mortgage insurance (PMI) if you pay less than 20% for a down payment. PMI generally costs less than homeowner's insurance, but your premium will vary depending on the size of your home loan.

» MORE: How Much Does Home Insurance Cost? An In-Depth Guide

7. HOA fees, if applicable

Depending on what type of home or condo you buy, you may have to pay homeowners association (HOA) fees. These fees are typically used to maintain the building or community and cover maintenance, amenities, concierge services, etc.

Average HOA fees range from $200–300 per month but can vary widely depending on your city and amenities in your building.[11]

» MORE: What do HOA Fees Cover? (and Are They Worth It)

8. Location

As all good real estate agents know, it all comes down to location, location, location. How far your dollar goes — and what additional fees to budget for — depends on where you live.

Let’s compare the situations of two income-identical homeowners.

Randy is a 56-year-old software developer in Little Rock, Arkansas. Sherri is a 28-year-old data analyst in Trenton, New Jersey.

Randy from Arkansas vs. Sherri from New Jersey

Both Sherri and Randy have the same income, debt, and budget for a home. But Randy’s money goes much further than Sherri’s.

Randy only has to budget $200 for property taxes. That's because the property tax rate in Arkansas is 0.64% — compared to 2.44% in New Jersey.

Sherri, on the other hand, has to foot a $580 monthly tax bill. That eats away at her $1,600 budget and reduces the amount of home she can afford.

Randy ends up with a home that is almost twice the size of Sherri’s. This is because the median listing home price/sq ft is $118 in Little Rock compared to $138 in Trenton.

This goes to show that location has an enormous impact on how much home you can afford.

» MORE: How Much You Pay for a Mortgage Depends on Where You Live

How much house should I buy?

Knowing how much of a mortgage you can qualify for and knowing how much home you can actually afford are two different questions.

Location plays a large role in how far your money can go. In general, you'll be able to afford a more expensive house in an area with low property taxes. In areas with steep HOA fees, your budget will be more limited.

If you have a poor credit score, you might be approved for a high-interest loan. It may be best to improve your credit score first to qualify for a lower interest rate

The size of your household and your total income can also affect your budget. If you're an individual making $70,000, you can likely afford a larger home than if you're a single-income household with multiple dependents.

» MORE: The 20 Best Home Buying Websites in 2021

Tip for first-time home buyers

It can be tempting to look for a house at the very top of your qualifying threshold. But consider looking for a home in the middle of the range of what you can afford. This will give you some cushion to save for repairs, maintenance, and emergencies.

You can also practice setting aside a mortgage payment for several months in advance. Simply transfer the money to a separate bank account and don't touch it.

This also gives you time to adjust your budget before the pressure is really on. When you're ready to buy a home, you can use the money you've set aside as a down payment — or keep it as an emergency savings fund.

Frequently asked questions

» JUMP: Back to the top of this page

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The post How Much House Can I Afford on $70k a Year? appeared first on Semya-Moya.

When you're house-hunting, it's natural to want to know more about a property before you fall in love with it.

Taking some time up-front to do a house history search can help you identify red flags that might cause issues later on. For example, you can see whether a property has a tax lien — something that may cause complications during closing — or whether it's in a flood zone.

Some searches can't be done until you actually make an offer, but others can be done online while you're still searching for homes.

Here are the best ways to find out more about a house before you make an offer.

1. Start with the basics

Start by looking at the listing for the property, either on a free site like Zillow, Redfin, or Realtor.com, or by asking your realtor to show you the MLS. The listing gives you a nice overview of the property. You can quickly see the benefits and drawbacks that will help you decide if you're interested in learning more.

Pay attention to the pictures of the home. Are there just a couple of photos, or are they taken from strange angles or with a wide-angle lens? This could indicate that the seller is trying to hide a defect or exaggerate the size of the space.

Look for the year the house was built. A home that's over 50 years old is generally considered old. This certainly doesn't have to be a dealbreaker, but it could signal foundation issues or problems with plumbing, electrical, or other systems.

The MLS listing will also include information about the number of rooms and bathrooms, how recently the home was renovated, the school district, size of the lot, and square footage of the home. Read this information carefully to see if the home fits within your criteria.

» MORE: How to Get Access to MLS Listings

Talk to your realtor

If you're already working with a real estate agent, ask them what they know about the house and area. Experienced, local realtors often know details about particular neighborhoods and houses that aren't available online or anywhere else. They may be able to connect with the listing agent to answer any questions you have.

A realtor will also be able to show you the MLS listing, as only licensed agents can access the MLS. Sites like Zillow, Redfin, and Realtor.com tend to be very reliable, but looking at the listing on the MLS will ensure that you're looking at the most up-to-date information.

2. See if there are any tax liens

Looking into a home's tax history can give you an idea of how much you might have to pay in taxes if you purchase this home. It'll also reveal if there are any tax liens on a property.

Tax liens can complicate the closing process, and knowing that a home has one can help you decide whether to move forward with an offer.

You can pull up the tax history for a property by looking at public records from the county's tax recorder or assessor's office. In many counties, this information is available online, but in others, you may have to go in-person.

To find your local tax recorder or assessor, go to the Nationwide Environmental Title Research (NETR) website. Click on your state on the map and choose your county. You'll see a list of contact information (such as a phone number or website) for the records offices in your county.

You can also google the name of your county + "property tax records" to find the relevant offices.

What to look for during a tax history search

Look at the tax history to see how much the current property owner is paying in taxes. This amount will be adjusted when the home is sold, but it gives you a ballpark idea of what the tax bill for this property may be like. This is helpful because taxes can vary quite a bit even within a single county.

The tax history should also reveal any liens on the property. This information will also come up during the title search, but seeing it now can help you decide whether to move forward with the process.

Should I buy a house with a property tax lien?

A property tax lien can be a red flag for a potential buyer, but it's not necessarily a dealbreaker.

Liens are attached to the property, not the homeowner. The seller may pay off the lien from the proceeds of the sale. But if not, the buyer will be responsible for it.

As a buyer, you can negotiate with the seller. But liens can certainly delay the closing process. If you're in a rush to find a home, it may be best to steer clear of a home with a tax lien.

It's also a good idea to consult a realtor. They can help you navigate the complications of liens.

» MORE: What To Know Before Buying a House With a Lien Against It

3. See if there's been any recent damage to the property

You can see if there's been any serious, recent damage to a property by looking at a Comprehensive Loss Underwriting Exchange (CLUE) report. This report will show the date, type and amount of past claims on a property.

As a buyer, you can ask the seller for a CLUE report anytime. It's a good idea to request one before making an offer, because it can show you if there are any big issues to be concerned about, such as electric, HVAC, or mold problems.[1]

The CLUE report will reveal any insurance claims filed for the property over the past 7 years.[2] It can also give you a ballpark idea of how much you might pay for home insurance. If there have been a lot of claims on a property, your insurance rate will probably be higher.[3]

4. See if there are any environmental hazards nearby

Even if a house is in excellent condition, environmental factors can affect the value of the property. Living near a landfill, for instance, can lower your property value anywhere from 10–15%.

You can get a feel for the environment around a property by visiting NETR's Environmental Records Database. Type in an address, and the map will show you how close the property is to:

• Sites on the National Priorities List (NPL)
• National Wetlands
• Flood Hazard Zones

The National Priorities List (NPL) is created and maintained by the EPA. It contains the most hazardous and out-of-control sites in the country.[4] If the address you're looking at is near a site on the NPL, steer clear.

A property in a flood hazard zone is considered high-risk, and it has a one-in-four chance of flooding during a 30-year mortgage. You'll also likely be required to get flood insurance. Flood insurance costs around $700 a year — so you're not breaking the bank, but it's still an additional expense to consider.

If you really want to get in the weeds, you can request a free PDF report from NETR. The report is sent to your email and contains detailed information on a number of environmental hazards, including:

• Whether there are hazardous waste sites nearby
• Any known or suspected hazardous substance facilities
• Toxic chemical releases
• Waste management
• Underground storage tanks
• Solid waste landfills
• Industrial waste
• Brownfields

5. Find out if it's a historic property

Owning a historic house will likely impact the way you approach repairs and renovations. Historic properties often require specific upkeep. For example, you may need to hire a specialist to clean or repair historic windows. Your insurance may also be higher.

Depending on the area, your home may be subject to strict rules and regulations. For example, you may be restricted from building on to the house, adding a fence, or doing certain renovations. Check with your city development office to find out the specific regulations.

To find out whether a particular home is considered a historic property, check with the National Register of Historic Places, the State Historic Preservation Office (SHPO), or the National Trust for Historic Preservation.

6. Conduct a title search

The title search is one of the last things you'll do before closing on a house. The main purpose of the title search is to verify the ownership of the property. In other words, make sure that the seller is the true owner and that there aren't any disputes about it. It will also reveal if there are any liens, deed restrictions, easements, or covenants on the property.

Lenders require a title search before approving a loan, and they'll typically order it after the buyer and seller have signed a purchase agreement.

Liens or claims

A lien is essentially a "claim" that a creditor puts on a property, marking it as collateral for a debt.

Not all liens are bad. For example, a mortgage is considered a lien against a property. However, other liens may delay the closing process, as they must be resolved before the sale of a home can be complete.

Most common types of liens

A property may also have a child support, divorce, or bankruptcy lien.

If there's a lien on the property, can I back out of the sale?

If the buyer has a title contingency, they will likely have the right to back out and get their earnest money back. They can also negotiate with the seller to pay off the lien.

If the buyer doesn't have a title contingency, and the seller pays off the lien, the sale will go through — and the buyer doesn't have the option to back out. If the seller doesn't resolve the lien, the buyer can withdraw and get their earnest money back.

» MORE: What to Know BEFORE Buying a House With a Lien Against It

Deed restrictions

A deed restriction is a clause that limits what a homeowner can do with their property. It may state that you can't operate a commercial business out of the home, can't put up a certain type of fence, can't keep certain vehicles (such as a boat or RV) or are limited to a certain number of vehicles at the same time.[5]

Easements

An easement gives someone else the right to use a piece of real estate. One common easement occurs when a utility hookup is located on a property, and the neighboring properties need an easement to be able to access it.

Not all easements stay with the property during a change in ownership, but some do.

Sellers are required to disclose all easements to the buyer. If the buyer finds out that there's an easement on the property that wasn't disclosed, this is generally grounds for backing out of the contract.[9]

» MORE: What Is An Easement?

Covenant

A covenant is an agreement about the use of a property. For example, a homeowner may be required to keep bushes trimmed that line the neighbor's property line. Or a property may not be allowed to put up a fence.[10]

Covenants generally don't have a huge impact on the value of a property, but they should still be disclosed during the title search. You can also ask your realtor to ask the homeowners about any possible covenants before you get to closing.

7. Other searches you can do

There are a few other fun, but not essential, searches you can do to get a feel for the history of a property.

You can use census records to see who used to live at a certain property. Or NETR has a historical aerials page that shows you an aerial view of a property from the past 10–60 years.

You can also visit WhatWasThere to get an idea of what an area looked like in the past. Photos may or not be available in your area. It seems as though anyone can upload a photo to this site, so the accuracy isn't necessarily guaranteed.

Find out if anyone died in the house

In most states, sellers are required to disclose violent deaths, such as a murder, that occur on a property. But they usually don't have to disclose peaceful deaths, like someone passing away from old age.

If you find out that a death happened in a house after you make an offer, that's not grounds for backing out of the deal — so you'd lose your earnest money.

You can order a report from DiedInHouse to discover whether a death occurred at a specific address. The report costs $11.99 and includes a bunch of information, such as:

• Who, when, and why the person died
• How close the home is to local cemeteries
• Reported meth lab activity at the address
• Registered sex offenders living at or nearby

The report isn't guaranteed to be complete or accurate, but it does give you information that would be time-consuming or impossible to track down on your own.

» MORE: Do Home Sellers Have to Disclose if Someone Died in a House?

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How Long Does it Take to Get a Mortgage Pre-Approval? (2023 Update)

In a hot market, buyers will want to get pre-approved for a mortgage as quickly as possible. Read on to learn how long you can expect this process to take.

What is a Craftsman-Style Home (A Complete Guide)

Thinking of buying a Craftsman-style home? We’ve got you covered with this guide to the history, features, and market potential of Craftsman houses.

The post 7 Ways to Find the History of a Property Before Buying appeared first on Semya-Moya.