Low commission realtors are a good option if you want to save money while getting an agent’s expertise. These realtors reduce your commission by charging less than the traditional 2.5–3%.

This guide breaks down the top low commission real estate agencies. You'll learn how much they cost, their pros and cons, and which markets they work in. (Not all of these brands will be available in your area.)

Where to find the best low commission realtors in 2023

Company	Clever Rating	Listing Fee	Availability
Best overall Semya-Moya	4.8	1.5% (min. $3,000)	Nationwide	Learn More
Redfin	4.5	1.5% (min. fee varies)	Nationwide (select markets)	Learn More
Ideal Agent	4.5	2% (min. $3,000)	Nationwide	Learn More
Houwzer	4	1%	DC, FL, MD, PA, NJ	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)

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.

Great savings, but some risks

Redfin

Learn More

On listwithclever.com

4.5

Listing Fee

1.5% (min. fee varies)

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.

Good agents, but limited choice

Ideal Agent

Learn More

On listwithclever.com

4.5

Listing Fee

2% (min. $3,000)

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.

Great savings, but less support

Houwzer

Learn More

On listwithclever.com

4

Listing Fee

1%

Editor's take

Overview

Locations

Houwzer is a great option for savings, but only if you’re comfortable receiving less hands-on support than you’d get from a traditional real estate agent.

The company's 1% listing fee could save you thousands compared to the 3% that traditional realtors charge.

But Houwzer — like the better-known Redfin — uses a team-based approach. You get paired with a real estate agent, but other Houwzer team members handle a lot of your transaction. That means less hands-on support from your agent and more opportunities for miscommunication.

Pros

• The 1% listing fee provides significant savings.
• The service includes 25 HD photos and virtual tours.
• Buyers can save by bundling mortgage and title.

Cons

• You get less one-on-one support from your realtor.
• The team-based service creates opportunities for miscommunication.

Houwzer is a regional discount brokerage that charges a 1% listing fee compared to the traditional 3%.

The company can offer these savings by using a team-based service model. Instead of one agent handling your entire transaction, tasks are handed off to different members of the Houwzer team. This model allows Houwzer’s agents to take on more clients than a traditional realtor. But it also means sellers get less hands-on attention from their realtor.

Buyers can also use a Houwzer agent to find a home. Houwzer offers eligible buyers a rebate of up to $2,500 at closing if they bundle mortgage and title with Houwzer’s subsidiary company, Newfound Mortgage. However, there’s no guarantee that Newfound Mortgage will offer a better rate than other home loan providers.

Houwzer is available in the following areas:

• Jacksonville, Orlando, and Tampa, FL
• MD
• Philadelphia, PA
• South Jersey, NJ
• Washington, DC

Best for buyers in high-end markets

Prevu

Learn More

On listwithclever.com

4

Listing Fee

1.5% (min. fee varies)

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)

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

What's the average real estate agent commission?

The average real estate commission rate is 5.37%, although it varies from 5% to 6% in different parts of the U.S. Commissions are split between the listing agent and buyer's agent, each typically earning about 2.5–3%.

Find average real estate commission rates near me

Want to know what the average real estate commission rate is in your area? Find your region in the table below to learn what realtors charge near you:

What is a low commission realtor?

While the typical real estate agent charges a 2.5–3% listing fee, a low commission realtor will list and sell your house for a discounted rate. The best low-cost realtors offer the same service as a full-commission realtor for as little as 1.5%, saving you thousands on real estate fees. Often, realtors offer lower commissions as a way to gain new clients.

How much can I save with low commission realtors?

You can save 0.5–1.5% of the final sale price of your home with low commission realtors. These realtors charge a 1.5–2.5% listing fee versus the traditional 2.5–3% rate. On a $400,000 home sale, that translates to commission savings of $2,000–6,000.

Semya-Moya can match you with full-service real estate agents who charge just 1.5%. On average, Clever customers save $7,000 in real estate commission. Get matched with a local agent today!

Are there any risks of using low commission realtors?

Some low commission realtors are riskier to work with because their brokerage:

• Uses a team-based service model
• Charges high minimum fees
• Doesn't offer full service

With a team-based model, different people at the brokerage handle different aspects of your sale. This approach can lead to less personalized service from your real estate agent and increase the chance of miscommunication and mistakes.

Some low commission realtors work with brokers that charge high minimum fees, sometimes up to $8,500 in certain areas. If you’re selling a home at a lower price point, these minimum fees could negate any potential savings.

Other low commission real estate agents work for a lower fee by offering fewer services, which could leave you without the support you need.

With Clever, you don't have to worry about these risks. Clever matches you with a dedicated, full-service real estate agent. You'll get all the personalized support you need throughout your sale, but you'll pay a low commission rate — just 1.5% or $3,000.

How to choose the best low commission real estate agent

Here's how to find the best low commission real estate agents for you:

1. Create a list of companies that offer the level of service and types of support you need.
2. Narrow that list to the top three companies offering the best rates based on your target sale price and budget.
3. Interview real estate agents from each service (remember, you’re hiring the agent — not the brand).
4. Choose the agent that seems like the best fit.

FAQs about real estate commission

About our low commission real estate broker recommendations

Learn more about the rigorous research process we use to arrive at our discount broker recommendations.

Related articles

Discount vs. Full Service Realtor: What's The Difference?

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How to Find the BEST Low Commission Real Estate Agents

Low commission real estate agents can save you thousands of dollars on realtor fees when you sell your house, but which low commission companies offer the best overall value? Read our guide to find out!

Best 1 Percent Commission Realtors across the US

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The Best Flat Fee Real Estate Brokers + Agents in 2023

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The post The Best Low Commission Realtors (2023 Broker Rankings) appeared first on Semya-Moya.

Some real estate companies offer lower commission rates. These companies are a result of new technology and growing competition in the real estate industry.

The top companies provide the same level of service as the best traditional brokerages — but for a lot less.

How does real estate commission work?

In a typical real estate transaction, a seller pays 5–6% of their home's sale price in realtor commissions. The total commission covers two fees: the listing agent's commission and the buyer's agent fee.

• The listing agent gets 2.5–3% for pricing, marketing, and selling the home.
• The buyer's agent gets 2.5–3% for bringing their client to buy the home.

While 2.5–3% for each real estate agent is typical, realtor fees are negotiable and vary by location, brokerage, and level of service.

Before signing a listing agreement with an agent, you should discuss their listing commission and how much they recommend offering a buyer's agent.

Why do realtors charge a 3% commission?

The traditional 3% commission model came from the need to:

• Relieve up-front costs for home sellers
• Reward agents for taking on risk

This model lets sellers pay their agent after the house sells. And the 3% commission is enough to incentivize realtors to invest in marketing the seller's home, despite having no guarantee of payment.

However, average commission rates have always fluctuated. And with technology and innovation that make selling a home more efficient, paying a 3% listing fee no longer makes sense for most sellers.

For example, Semya-Moya pre-negotiates 1.5% listing fees with agents from well-known brokerages like Keller Williams and RE/MAX. When you find your agent through Clever, you get a top realtor's experience, service, and support while paying half the standard commission rate.

Consider your options before choosing a 3% commission realtor

Most home sellers can avoid paying a 3% listing commission by working with a low-commission real estate broker.

The best companies charge listing fees as low as 1.5% — but still provide the same services as traditional realtors. Many also offer cash-back incentives when you buy your next home.

To save on the typical 3% real estate commission without compromising value, consider the following top companies.

How to save on realtor fees: Top companies to choose from

Company	Clever Rating	Listing Fee	Availability
Best overall Semya-Moya	4.8	1.5% (min. $3,000)	Nationwide	Learn More
Redfin	4.5	1.5% (min. fee varies)	Nationwide (select markets)	Learn More
Ideal Agent	4.5	2% (min. $3,000)	Nationwide	Learn More
1 Percent Lists	4	1% (min. fee varies)	AL, AR, CA, CO, FL, GA, IA, KY, LA, MS, MO, NC, PA, SC, TN, TX, UT, WA	Learn More

Best overall

Semya-Moya

Learn More

On listwithclever.com

4.8

Listing Fee

1.5% (min. $3,000)

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.

Great savings, but some risks

Redfin

Learn More

On listwithclever.com

4.5

Listing Fee

1.5% (min. fee varies)

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.

Good agents, but limited choice

Ideal Agent

Learn More

On listwithclever.com

4.5

Listing Fee

2% (min. $3,000)

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.

Low rates, but some risk

1 Percent Lists

Learn More

On listwithclever.com

4

Listing Fee

1% (min. fee varies)

Editor's take

Overview

Locations

1 Percent Lists provides legitimate savings, especially for sellers in the Southeast. Its 1% listing fee is lower than the 2.5–3% rate realtors traditionally charge, potentially saving you thousands. And because it’s a full-service brokerage, you’ll get the same range of services as you would with a traditional agent.

But watch out for minimum commission requirements and transaction fees. 1 Percent Lists is a franchise operation, so each office sets its own minimums and fees. Depending on where you sell and for how much, you could pay more than 1%.

Plus, agents may have to take on extra clients to make up for the low commission they’re making. You could get less hands-on support than you hoped for.

Pros

• The 1% listing fee is among the lowest in the industry.
• You get full-service support, including professional photography, an MLS listing, and contract negotiation.
• You can list on multiple MLSs for more exposure.

Cons

• There are minimum commission requirements and transaction fees.
• You may get less personalized service from your agent.
• The company doesn't offer any discounts or benefits for buyers.

1 Percent Lists is a real estate brokerage with franchises in 18 states, mainly in the Southeast. As its name suggests, it charges a 1% listing fee compared to the traditional 3%. However, some franchises may impose minimum commission requirements and transaction fees.

Its agents also represent buyers, but it doesn’t offer any buyer savings.

As a full-service brokerage, 1 Percent Lists provides all the same services as a traditional brokerage, including professional photography, MLS listings, and contract negotiation. The company claims it can offer low rates and full service because it doesn't have brick-and-mortar locations and relies on technology to sell homes.

Because the company is a franchise, service quality varies by location.

1 Percent Lists has franchises in select markets in AL, AR, CA, CO, FL, GA, IA, KY, LA, MS, MO, NC, PA, SC, TN, TX, UT, and WA.

How much can I save with a 3% total commission?

Getting a 3% total commission rate could save you up to 50% compared with the 6% commission rate that sellers have traditionally paid.

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

In reality, your savings will probably be a bit lower. Average realtor commission rates vary by location, but in most places, sellers pay around 5–5.5%.

Your actual savings depend on how much less you'll pay compared with what a traditional agent in your area would have charged you.

Why do sellers pay the buyer's agent fee?

As the seller, you pay the buyer's agent fee for a couple of reasons:

1. It decreases the out-of-pocket costs for the buyer. If buyers had to pay for their agent, many more people wouldn't be able to afford a home. Sellers covering the cost allows for a larger pool of potential buyers.
2. It incentivizes buyer's agents to show your property to their clients. Buyer's agents are more likely to point their clients to your listing if you offer a competitive buyer's agent commission. The agents know they'll get paid well if one of their clients purchases your property.

Do I have to pay a 3% buyer's agent fee?

You have no legal obligation to pay a buyer's agent a 3% commission. But most listing agents recommend that you offer close to the local average (usually 2.5–3%).

If you want buyer's agents to show your house to their clients, you need to make it worth their while.

By offering a competitive buyer's agent commission, you'll likely have a larger pool of potential buyers. This can help you get multiple offers, sell for the price you want, and sell quickly.

» MORE: Understanding the Buyer's Agent Fee

What is a 3% commission on the sale of a property?

As a seller, your home's sale price determines the commission you pay. Here's the standard 3% listing agent commission at different price points:

Unless you work with a low-commission realtor (which most sellers should do), you'll pay 3% to both the listing agent and the buyer's agent.

FAQ about real estate commission

Related links

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.

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.

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 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!

The post 3% Commission Realtors: Should You Use One? appeared first on Semya-Moya.

What is Effective Agents?

Is Effective Agents legitimate?

How does Effective Agents work?

1. You enter your sale or purchase details on the Effective Agents website
2. Effective Agents looks for agents in its network who may be a good fit for your needs
3. You'll receive up to three agent matches via email and text
4. Agents may contact you directly, or you can schedule meetings with them through the company's website
5. You can interview your agents, then pick the one you like best
6. If you don't like your matches, you can ask Effective Agents for more recommendations
7. Or, since you can review matches with no obligation, you're free to walk away

How much does Effective Agents cost?

How does Effective Agents make money?

Why do top realtors work with agent matching services?

Should I work with Effective Agents?

The agent matches were high-quality

Less support for rural customers

No built-in savings

How to save on realtor commission fees

• Clever offers a listing fee of just 1.5%
• Ideal Agent charges a 2% listing fee (subject to a $3,000 minimum fee)

Effective Agents reviews from real customers

What customers like about Effective Agents

'It was the easiest search ever'

'This is a great tool' for making informed decisions

'Helpful if you are moving to a new location'

Effective Agents complaints from customers

Top Effective Agents alternatives

1. Semya-Moya

Semya-Moya

Full Review

💲 Listing Fee

1.50%

💰 Buyer Savings

Up to $500 cash back

⚡ Avg. Customer Rating

⭐⭐⭐⭐⭐

✍️ Editor's Take

✔️ Pros

❌ Cons

🏆 Reviews

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.

Learn how Clever helps you find the perfect agent and save thousands

• Free, nationwide agent-matching service that partners with full-service local agents from conventional brokerages like Keller Williams, Century 21, and RE/MAX
• Provides multiple agent matches so you can interview, compare marketing plans, and choose the best fit
• Pre-negotiates low rates on your behalf — you get full service for 1.5% with a $3,000 minimum
• If you buy with Clever, you may get up to $500 cash back if you qualify

• You may not get matched with an agent from your preferred real estate brokerage.
• Like other agent matching services, Clever may have fewer agents in rural areas.
• Agents may not provide premium services like drone photography and professional home staging.

As of 11/6/2023, Clever has an average customer rating of 5.0 on Trustpilot, based on 2,589 reviews.

Read reviews from real Clever customers here.

2. HomeLight

HomeLight

Full Review

💲 Listing Fee

Standard rate (2.5-3%)

💰 Buyer Savings

None

⚡ Avg. Customer Rating

⭐⭐⭐⭐⭐

✍️ Editor's Take

✔️ Pros

❌ Cons

🏆 Reviews

HomeLight is an excellent tool for finding a great local agent quickly. However, it offers zero built-in commission savings for sellers or buyers.

Read the full HomeLight review.

• Get a list of local real estate agents in as little as two minutes
• One of the largest agent networks in the industry makes it less challenging to find an agent who specializes in short sales and other non-traditional sales
• Optional Trade-In program makes it easier to buy a new house if you need to sell your current one first

• No built-in savings for home sellers or buyers
• No minimum qualifications for partner agents, so quality may vary between locations

As of 8/23/2023, HomeLight has an average customer rating of 4.6 across 1,178 reviews on Google, Sitejabber, and the Better Business Bureau.

Read reviews from real HomeLight customers.

3. Ideal Agent

Ideal Agent

💲 Listing Fee

2% ($3k minimum fee)

💰 Buyer Savings

None

⚡ Avg. Customer Rating

⭐⭐⭐⭐⭐

✍️ Editor's Take

✔️ Pros

❌ Cons

🏆 Reviews

Ideal Agent can match you with a local realtor who sells a lot of homes. But although it pre-negotiates discounted listing fees, you can save twice as much with competitors like Clever.

• Agents in network must meet strict quality standards
• Pre-negotiated listing fees of 2% (or $3k for homes under $150,000)

• 2% listing fee is less than the national average, but it's not the best rate out there
• No built-in savings for buyers
• Only matches you with a single agent

As of 3/28/2023, Ideal Agent has an average customer rating of 4.9, based on 6,254 reviews across Google and Trustpilot.

Bottom line: Should you give Effective Agents a try?

How does Effective Agents work for real estate agents?

What is Effective Agents' referral fee?

Effective Agents registration requirements

• Transaction volume
• Active days on market (ADOM)
• List-to-sale price ratio
• Local market knowledge
• Experience within certain home price ranges
• Overall success rate

Effective Agents customer lead quality

Effective Agents reviews from realtors

What realtors like about Effective Agents

Effective Agents complaints from real estate agents

The post Effective Agents Reviews: Your Ultimate Guide appeared first on Semya-Moya.

When you're buying or selling a house, you need to access the MLS (multiple listing service). It's the most accurate, up-to-date resource for finding homes for sale online. It's also the most popular place where sellers list their houses for sale.

Typically, the MLS is restricted to professionals with an active real estate license, but there are several options for accessing it without a license.

If you're selling, you can:

• Use a flat fee listing service
• Use a public MLS database
• Ask a local realtor to set you up with a listing

If you're buying or investing in a property, you can:

• Browse live MLS listings using a third-party site like Zillow or Realtor.com
• Use a public MLS database
• Use a data aggregator or API
• Ask a local realtor to set you up with a search

Aside from working with a licensed agent, these options don't offer full access to the MLS. But in some situations, you might not need full access. A flat fee listing service could be a sufficient, low-cost option if you have real estate experience and want to avoid paying realtor fees.

In other situations, it may make sense to partner with a local realtor. If you decide the latter is your best option, you can still save money on fees by working with a discount real estate broker.

💰 SAVE: Get a top local realtor for half the typical commission!

What is the MLS?

The MLS — short for "multiple listing service" — is a regional and private database where brokerages advertise properties for sale.

There are more than 800 MLS databases across the U.S., and over 91% of sellers post their homes on the local MLS with a listing agent. The information then gets syndicated to real estate sites like Zillow, Redfin, and Realtor.com. Buyer's agents also use the MLS to access the most up-to-date property information for their clients.

Third-party sites like Zillow offer quick, free access and user-friendly interfaces, but these sites tend to lag behind the MLS. When time is of the essence, it’s helpful for buyers and sellers representing themselves to understand that public websites pulling from MLS data can run hours or sometimes even days behind. The information made publicly available is also not comprehensive, so lining up a showing can take even more time.

Who gets MLS access?

Full MLS access is restricted to licensed realtors and brokerages with an active membership in the National Association of Realtors (NAR). This is primarily to protect sensitive information such as sellers’ and prospective buyers’ personal data, security-related details like access codes, and times when a property will be vacant for showings.

Another reason for the limited access is that keeping an MLS online and up-to-date is costly. By collecting fees from paying members, the NAR bears the cost of hosting and maintaining MLS databases.

A NAR membership is not the only way of gaining access to listings on the MLS, though it's the most direct and comprehensive method for doing so. For many buyers and sellers operating without the help of an agent, limited access may include all the information they need.

How to get an MLS listing without a realtor

You can get an MLS listing without a realtor by hiring a flat fee MLS listing service. These companies post your property on the MLS for a few hundred dollars (compared to the 2.5–3% that most listing agents charge).

If you're selling a house for sale by owner (FSBO), using a flat fee MLS listing service is a budget-friendly way to advertise your home to potential buyers. Some flat fee MLS services include just a bare-bones listing, essentially leaving you to sell the house yourself. Others offer more hands-on support, like pricing assistance, showing schedulers, and consultations on offers and contracts.

A flat fee MLS listing can cost anywhere from $100 to over $1,000, depending on the company and service package you choose.

How to get an MLS listing with a realtor and still save

If you want to save money but aren't sure about a DIY sale, another option is to sell with a low commission real estate agent. The top brands offer the same listing services you'd find with a local listing agent — but at a far more competitive commission rate.

Semya-Moya, for example, negotiates discounted commission rates with full-service agents from well-known brokerages like Keller Williams and Berkshire Hathaway. We invite agents into our referral network based on local sales performance and customer ratings.

Clever partner agents provide the same service you'd expect from a top-selling agent in your area. The only difference is that you pay just 1.5% in listing fees when you find your agent through Clever. Read Semya-Moya reviews and see why sellers trust us.

💰 SAVE: Sell with a top local agent for just 1.5%!

How to access MLS listings without a license

If you're ready to buy a house, here are the top ways to gain MLS access and research homes for sale in your area.

Work with a local agent

MLS access is generally restricted to licensed real estate agents, so if you want to view MLS listings, your best bet is to find a great local realtor.

Your agent can set you up with MLS access through a private online portal, and they'll also set up instant MLS alerts when new homes go up for sale. And that's just one of the MANY benefits you'll get when working with a top buyer's agent.

As a buyer, you also shouldn't have to pay your agent anything out of pocket. The seller typically covers your agent's fees out of the sale proceeds. So, if you're ready to start the home buying process, you have everything to gain by finding an experienced realtor to help you find the perfect house and negotiate a winning offer.

Use a public MLS database

Some of the larger MLS providers allow you to browse listings online, even if you're not currently working with a licensed real estate agent. For example, Bright MLS — the local MLS for parts of Maryland, Pennsylvania, Virginia, West Virginia, and Washington, DC — offers a public home buying website called Nestfully.

Since Bright MLS Homes and other similar services get their data directly from the MLS, listing information should be accurate and up-to-date. However, public MLS databases don't include all the information that agents can access.

For example, you typically won't find information like:

• Confidential agent notes
• Buyer's agent commission details
• Showing instructions
• Security codes for accessing the property

Use a home-buying website

You can search for MLS listings on home-buying websites like Zillow, Realtor.com, Trulia, and Redfin. This is possible because these sites syndicate MLS listings from across the U.S. You can also set up alerts from these sites to get updates on properties that match your criteria.

» LEARN: The best home-buying websites (full rankings)

However, compared to local MLS data, the information on these sites is more likely to be incomplete, out-of-date, or inaccurate.

Further, many home buying websites get some or all of their data from third-party companies — not directly from the MLS. This limits how quickly the websites can update their listing information.

On Zillow, MLS updates can be delayed by as much as 24–48 hours. That's why a home will sometimes still appear as "for sale" even after the seller accepts an offer.[4]

Additionally, some agents block their listings from third-party data companies, which prevents them from appearing on some home buying websites.

Use a real estate API

An API, or application programming database, allows web developers to access data and incorporate it into their websites and apps.

Developers use commands to tell the API what type of data they want (e.g., housing market data, home values, property details, neighborhood characteristics), and the API retrieves that data from its database. This system allows developers to build features like real estate search tools (think Zillow or Trulia) and home value estimators.

An added benefit is that an API can monitor multiple MLSs or other public sources at the same time, returning results from across several real estate markets.

Some of the more popular real estate APIs include:

• Zillow API
• Retsly API
• Attom Data API
• Black Knight Developer Portal
• Estated API
• Trulia API
• Picket Homes
• PropStream
• Home Junction

While using an API may seem similar to setting search parameters and alerts on a site like Zillow or Redfin, the two options operate differently.

Public sites are likely to offer less comprehensive data updates than a self-purchased API. Third-party websites update on their own schedules and often lag behind the MLS.

Using an API directly is often more efficient, particularly for real estate investors who consistently buy homes and want specific property data.

FAQ about MLS access

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Home Buyer Rebates: Get Cash Back When You Buy!

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The post How to Get MLS Access: No Realtor's License Required appeared first on Semya-Moya.

When selling a home, a 1% realtor commission can save you a lot of money. But it's important to understand how different real estate brands create savings and what kind of service, expertise, and value you'll get for your money.

This guide breaks down the top brands offering a 1% realtor commission (or close to it).

Where to find the best 1 percent commission realtor near you

1. Clever

Semya-Moya

Learn More

💲 Listing Fee

1.5% (min. $3,000 fee)

💰 Avg. Savings

$5,625

⭐ 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 real estate agent for less. Unlike many similar companies, Clever lets you choose your own realtor from its network of more than 20,000 top-performing local agents, and it pre-negotiates big discounts on your behalf. That way, you can save without sacrificing service.

Try Clever for free — save thousands on commission.

• Clever matches you 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 a 1.5% listing fee.
• Eligible buyers get cash back after closing.

• 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.

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 matches sellers with handpicked local agents who work for some of the lowest rates in the industry. You can use its platform to compare agents from discount brands (including brands in this list!) with agents from top brokerages, like Keller Williams and RE/MAX.

Clever pre-negotiates a 1.5% listing fee with all its partner agents, so you'll save money no matter who you work with. The company selects agents based on experience, customer reviews, and sales performance.

You can request agent matches until you find the right fit — or you can walk away anytime. There's no obligation to move forward with an agent, and Clever is free to use.

2. 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).

Redfin is best known as a home search tool, but it’s also a licensed real estate brokerage that helps people buy and sell homes at reduced rates. The company charges sellers a 1.5% listing fee — and you can get a 0.5% refund if you also buy with a Redfin agent within 12 months, lowering your effective rate to 1%.

Redfin uses its own salaried agents. These agents are fully licensed realtors who provide the same general services and support as traditional real estate agents. The company creates savings by having agents handle a higher volume of customers and using a team-based approach for efficiency.

Redfin offers solid overall value and fewer trade-offs than many other discount real estate companies. But the company's team-based approach may not be the best fit for sellers who have complicated selling situations or prefer the familiarity of working with a traditional agent.

3. Houwzer

Houwzer

Full Review

💲 Listing Fee

1% (min. $2,500)

💰 Avg. Savings

$7,625

⭐ Avg. Customer Rating

4.9/5 (1,463 reviews)

✍️ Editor's Take

Pros

Cons

Reviews

Locations

Houwzer has very low listing fees, but you may be frustrated working with a team instead of just your realtor.

Read the full Houwzer review.

• You’ll pay a 1% listing fee, which is one of the lowest rates in the industry.
• Houwzer’s maximum listing fee of $10,000 makes it a great deal for homes over $1 million.

• Houwzer has a small team, which limits your options if you don't hit it off with the first agent it sends you.
• The company uses a team-based approach, which increases the chances of miscommunication and mistakes.

Houwzer has a 4.9 out of 5 rating (1,463 reviews) across popular review sites like Google and Zillow.

Read reviews from real Houwzer customers here.

Houwzer is available in the following locations: FL, MD, NJ, PA, VA, DC.

If you're selling a higher-priced home, especially over $1 million, Houwzer is a good deal and worth looking into. The company offers a 1% listing fee, with a $2,500 minimum and a $10,000 maximum.

Houwzer offers a similar level of service to a traditional agent. But its team-based approach may lead to less personalized service, and it’s available only in select markets in Florida and the mid-Atlantic.

4. 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.

1 Percent Lists is a discount real estate broker that offers a 1% listing commission in select Southeastern markets.

If the brokerage is available in your area, it's worth interviewing an agent to see if they'd be a good fit. You'd save a decent amount of money on listing fees, and the company provides most of the services that traditional agents offer.

However, 1 Percent Lists agents won't hold open houses or advertise your listing in print media, so if those services are important to you, you'll need to do it yourself or work with a different brokerage.

5. SimpleShowing

SimpleShowing

Full Review

💲 Listing Fee

1% (min. $3,500)

💰 Avg. Savings

$6,375

⭐ Avg. Customer Rating

5.0/5 (336 reviews)

✍️ Editor's Take

Pros

Cons

Reviews

Locations

SimpleShowing’s commission savings are solid — but you may compromise on agent selection and hands-on service.

Read the full SimpleShowing review.

• SimpleShowing is one of the only true 1% commission companies.
• It also offers one of the largest home buyer rebates of any low-fee brokerage.

• You have very few options when it comes to selecting your agent.
• Agents handle more customers than the average realtor, which could impact service quality.

SimpleShowing has a 5.0 out of 5 rating (336 reviews) across popular review sites like Google, Trustpilot, and Zillow.

Read reviews from real SimpleShowing customers here.

SimpleShowing is available in the following areas: FL, GA, TX.

SimpleShowing is a regional discount brokerage that offers 1% listing fees in select markets in Florida, Georgia, and Texas. But it has a $5,000 minimum fee, so sellers with homes below $500,000 will pay more than the advertised 1% rate.

If you're buying, SimpleShowing is especially worth considering. The company will cover your closing costs up to 1% of the purchase price. The refund is $5,000 on average, which is much higher than most companies offer.

Like Redfin, SimpleShowing hires in-house agents. It offsets its discounted fees by having agents handle more customers and using technology to manage transactions more efficiently. This approach could lead to issues if your agent is overextended and you get less hands-on support than you need.

What is a 1% commission realtor?

A 1% commission realtor is a real estate agent who lists and sells your home for 1% of the final sale price (compared to the 2.5–3% most realtors charge).

When selling something as valuable as a house, even small rate reductions can net you huge savings. On a $500,000 home, getting your listing fee down to 1.5% (instead of the typical 3%) would save you $7,500!

To find the best value, compare several realtors and brokers that advertise around a 1% listing fee. Some agents or companies skimp on key services, support, and experience to make up for the discounted rate, and you could lose a lot more than you save.

Quick example: You choose a 1% commission real estate agent, but they're less experienced and overextended. They incorrectly price your home and phone in the negotiations. You end up selling for $50,000 less than another slightly more expensive — but also more experienced — agent could've sold for. Chances are you're losing a lot more on the final sale price than you saved in realtor fees.

⚡ Get matched with top local agents, save thousands on realtor fees!

If you're looking for the best combination of agent quality and savings, Semya-Moya is a good place to start.

With Clever, you get matched with top, full-service agents in your area for a listing fee of just 1.5%. You can quickly compare agents from respected brokerages like Keller Williams and RE/MAX until you find one you like — or you can walk away at any time, no strings attached. Answer these five simple questions to get started.

Should you use a 1% commission realtor?

Every home seller should consider agents and brands offering lower commission rates (who wouldn't want to save money?) But it's important to understand the ins and outs of various fee structures, how different brands create those savings, and what kind of service, expertise, and value you'll get for your money.

Getting a commission from 3% to 1% can net you massive savings ... on paper. But if the agent or company skimps on key services, support, and experience to make up for the discounted rate, you could lose a lot more than you save.

How to choose a 1% commission realtor

Choosing the right 1% commission realtor means identifying which local discount brokerages offer great dollar-for-dollar value, then interviewing agents to find the best fit for you.

The main points to consider when comparing discount real estate brands include pricing, service models, and brand reputation.

How does a 1% realtor commission work?

In a traditional real estate transaction, there are two agents — the listing agent represents the seller, and the buyer's agent represents the buyer. Usually, the seller pays for the two agents. Both agents typically charge a fee around 2.5–3%, so the seller's overall rate comes to about 6%.

When you work with a 1% commission real estate company, your total fee drops to 3.5–4%. On a $350,000 home sale, you'd save around $7,000 in realtor fees by working with a 1% commission realtor!

These savings usually come because the listing agent reduces their fee.

You'll still need to offer a competitive buyer's agent fee — generally 2.5–3%, depending on your market.

Can I offer the buyer's agent a 1% real estate commissions?

As a seller, you can technically offer whatever rate you'd like as a buyer's agent commission. But it's risky to cheap out on this rate.

The buyer's agent fee incentivizes agents to show your home to their clients. If you offer a less-than-competitive buyer's agent commission, agents may not be as likely to show your home — and you may miss out on potential buyers and bidding wars.

Why do some agents charge lower commissions?

In general, real estate agents who lower their fees do so to attract more clients.

When there's a hot seller's market, there's more competition over listings, and more realtors tend to drop their commissions. Realtors may also lower their fees for repeat clients or those who are selling at a higher price point, since a realtor's commission rises with a home's value.

In other cases, agents may work with a service like Semya-Moya that negotiates lower rates in exchange for sending them a steady stream of business.

A platform like Clever allows agents to take on new customers without spending time and money on marketing their services. Agents can then pass on those savings to you in the form of lower listing fees.

💰 Sell with a top local agent, save thousands on realtor commissions!

Other ways to get a 1% listing fee

Aside from selling with a low commission real estate brokerage, you can try to negotiate a lower commission with your agent directly. This may work if you're selling an expensive home in a hot market or are willing to buy and sell with the same brokerage. Other than that, most sellers will have a hard time talking an agent down from their standard rate.

You can also avoid listing fees altogether by selling your house without a realtor. However, most FSBO sellers end up listing with an agent, and research shows that people who sell without a realtor get about 26% less on average than homes listed with an agent.

Next step: Interview local agents

If you want to save money on commission fees, your first step should be to talk to a few local discount realtors. Compare rates, services, and experience to find a real estate agent who fits your needs and budget.

You can always interview agents without any risk or obligation, so you have nothing to lose by shopping around until you find someone you're comfortable with.

Most full-service agents will also give you a listing presentation, which involves visiting your house and performing a free comparative market analysis to help you choose a competitive listing price for your home.

Companies like Clever make it easier than ever to find a top discount real estate broker near you. Clever matches you with traditional agents from trusted brokerages like Keller Williams and RE/MAX, then negotiates discounted listing fees for you. Interview as many agents as you'd like until you find the right fit, or walk away at any time with zero obligation.

FAQ about 1% commission realtors

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Negotiating Realtor Fees: 11 Expert Tips to Reduce Commission

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The post Best 1 Percent Commission Realtors across the US appeared first on Semya-Moya.

Realtor definition

Technically speaking, a Realtor (or REALTOR®) is a member of the National Association of Realtors (NAR), an industry trade group for agents, brokers, appraisers, and other real estate professionals.

However, it's common for people to use "realtor" — with a lowercase "R" — as a generic term for any real estate agent. In this context, "realtor" refers to a person licensed to help consumers buy, sell, and rent homes. It's like using the term "band-aid" instead of "adhesive bandage," even when you're not talking about the official Band-Aid brand.

In the rest of this article, we'll use "Realtor" only when referring to a member of NAR.

» LEARN: How to become a Realtor

Realtor vs. real estate agent

While the title "Realtor" is reserved for NAR members, the term "real estate agent" can refer to anyone licensed to help arrange real estate transactions — whether they're a member of NAR or not.

To become a real estate agent, a person must obtain the appropriate license from their state. In most states, the entry-level real estate license is called a "salesperson" license, and it authorizes licensees to act on behalf of a broker in real estate transactions.

Agents with a salesperson license are typically required to:

• Have a high school diploma or GED
• Complete around 40-100 classroom hours of real estate education
• Pass a state licensing exam
• Work under the supervision of a licensed broker
• Complete regular post-licensing education to maintain their license

A new agent becomes eligible to join NAR (and officially become a Realtor!) once they've received their license and joined a brokerage managed by another Realtor. They usually join a local Realtor association, which grants them reciprocal membership in both their state Realtor association and NAR.

An agent doesn't need to become a Realtor to practice real estate, but most do. Of the estimated 2 million active real estate licensees in the U.S., more than 1.4 million are also Realtors.

Joining a Realtor association often gives agents tools not available to non-Realtors. In many areas, membership unlocks access to the local multiple listing service (MLS), a private database of homes for sale. Other resources include professional development and networking opportunities, plus the freedom to call themselves Realtors without violating NAR's trademark.

However, there are reasons why an agent might not become a Realtor.

Why some agents don't become Realtors

The most common reason real estate agents say they choose not to become Realtors is that they can subscribe to the local MLS without joining a Realtor association.

Other agents don't become Realtors because they work for a broker who isn't a NAR member. According to the trade group's guidelines, a brokerage's principal member must join the organization before any agents under their supervision are eligible for membership. So, if an agent joins a brokerage that isn't affiliated with a Realtor association, they won't be able to join NAR either.

Finally, an agent might eschew NAR membership because they consider it too expensive. Becoming a Realtor typically requires someone to join three different Realtor associations: one each at the local, state, and national level. Those dues can add up to $1,000 or more annually, which is a hefty cost for new licensees, part-timers, and other agents who aren't closing many deals.

Realtor vs. broker

A real estate broker is an experienced agent who is licensed to arrange real estate transactions, with or without supervision. As with any agent, an individual broker is a Realtor only if they're also a member of NAR.

Brokers typically begin their careers as salespeople before "upgrading" to a broker license that authorizes them to:

• Supervise other agents
• Operate independently
• Manage a brokerage or start their own firm

It's more difficult to become a broker than a salesperson. State-level licensing requirements typically require applicants to:

• Have multiple years of experience as a licensed salesperson
• Complete additional training
• Pass a comprehensive licensing exam
• Complete regular post-licensing education to maintain their license

» MORE: What Is a Real Estate Broker?

Does it matter if my agent is a Realtor?

There isn't a simple yes or no answer to this question. There are some cases when it could matter a lot whether an agent is a Realtor. In others, it's something to consider — but it shouldn't necessarily be a deal-breaker.

Questions to ask an agent who's not a Realtor

You can determine how relevant an agent's lack of Realtor association membership is to your situation by asking them a few basic questions:

• Why aren't you a member of a Realtor association?
• Have you ever been denied membership or had your status revoked?
• Do you have MLS access?
• If you don't have MLS access, how do you plan to market my home or help me find a property to buy?

As long as the agent provides satisfactory answers that don't trigger any alarm bells, you shouldn't write them off just because they're not a Realtor.

Here are red flags to watch for:

Why it might not matter whether an agent is a Realtor

There are cases when it's unwise to hire an agent who's not a Realtor. But the Realtor title itself does not tell you enough about an individual member's expertise to make NAR affiliation a deciding factor in your agent search.

NAR has invested heavily in marketing campaigns that encourage consumers to use Realtors. These campaigns feature two main arguments:

• Realtors are experts in the real estate field.
• Realtors are held to a higher ethical standard than other agents.

In individual circumstances, those things may be true. However, Realtors aren't more qualified or ethical than other agents by definition.

Realtors aren't automatically more qualified

Realtor association membership may signal that an agent is serious about their real estate career, but it does not mean the person is a superior agent.

Agents do not have to "earn" the Realtor title by acquiring a set number of years of experience or completing a certain number of transactions. They just have to join a Realtor association, whose membership requirements are generally basic enough that an agent can join before they've ever made a sale.

Typical standards require applicants to:

• Have a real estate license
• Work for a broker who is a Realtor
• Have a record clear of recent criminal/civil penalties related to real estate activities
• Pay membership dues
• Complete a short orientation course
• Agree to abide by NAR's Code of Ethics
• Complete 2.5 hours of ethics training every 3 years

We recommend that you ask any agent to demonstrate their qualifications by providing you with a detailed sales history and a list of references.

Realtors aren't necessarily more "ethical"

Working with a Realtor doesn't automatically guarantee you a higher level of professionalism, either.

NAR touts its Code of Ethics, which holds Realtors to a higher standard than what's generally legally required, as a crucial differentiator between its members and other real estate professionals.

In theory, the Code of Ethics gives consumers an extra layer of protection against unscrupulous agents. Individual Realtor associations can fine, suspend, or otherwise discipline members who violate the code, even if the agent's actions don't technically break any laws.

However, in practice, it's not clear how much this benefits individual consumers. NAR guidelines prohibit local associations from publicizing disciplinary actions to non-members. So, unless an agent voluntarily tells you about their past misdeeds, you can't know for sure whether they've ever violated the Code of Ethics.

Every state has laws and regulations governing real estate agent behavior, and while they may be less extensive than the Code of Ethics, the disciplinary process is more transparent. Consumers can check their state licensing board's website to learn if an agent has ever been reprimanded.

Besides, an agent can behave ethically — and even commit to following NAR's Code of Ethics — without being a member of a Realtor association.

To gauge an agent's professionalism, we recommend obtaining references from recent clients and researching online reviews. These things will likely tell you more about an individual agent's reputation than the mere fact of whether they're a Realtor.

Conclusion: Should I hire a Realtor?

Whether you choose to only hire an agent who's a Realtor is a personal decision. It could be a wise move if:

• Non-Realtors can't access the MLS in your area.
• You feel more comfortable knowing an agent is bound to NAR's Code of Ethics.

Otherwise, you should judge Realtors and non-Realtors alike — on their merits.

Start by interviewing multiple agents to find one who seems like a good fit. Then ask yourself:

• Do they seem knowledgeable?
• Are they experienced working with clients in your market and price range?
• Are you satisfied with the level of service they're offering?
• If you're selling, are you comfortable with their expected fee structure?
• Do you trust them?

When you find an agent you like, verify their qualifications:

• Ask for a detailed sales history.
• Ask for a list of recent references — and call them!
• Confirm their license status and check for disciplinary violations.
• Check online reviews at Google, Yelp, and the Better Business Bureau.

You don't necessarily have to use a Realtor, but we DO recommend partnering with a qualified real estate agent when buying or selling property. It's one of the most complicated types of financial transactions you'll ever make, and you're more likely to have a positive outcome if you have an expert on your side.

How to become a Realtor

The first step to becoming a Realtor is obtaining an entry-level real estate license. In most states, this is called a "salesperson" license.

Applicants must generally be at least 18 years old (19 in a few states), have a high school diploma or GED, and be eligible to work in the United States.

Every state requires aspiring agents to complete pre-licensing real estate education — which may be a specific course or a set number of classroom hours — and pass an exam.

Find your state in the chart below to learn what license you'll need and how much education you'll need to complete to become a real estate agent.

Note that these are just general guidelines for complete real estate novices. Many states allow you to satisfy some or all of the pre-licensing education requirements with college-level coursework in real estate or relevant experience.

After passing your licensing exam, you'll need to pay your state's application fees (generally a few hundred dollars) and find a brokerage to sponsor you. Remember: if you want to become a Realtor — i.e., join the National Association of Realtors — your broker must already be a member.

Once you've found a qualifying brokerage, you'll be eligible to join your local Realtor association, which will automatically grant you reciprocal membership in both your state-level association and NAR.

FAQ About Realtors

Are all real estate agents Realtors?

No. "Realtor" is a trademarked term that refers exclusively to members of the National Association of Realtors, a private trade group for real estate professionals.

You don't have to become a Realtor to be a real estate agent, although most agents are Realtors.

Nor do you have to be an agent to become a Realtor. NAR membership is open to other industry professionals, including appraisers and property managers.

The caveat to this rule is that many people use the uncapitalized "realtor" as a generic word for real estate agent.

» MORE: Realtor vs. real estate agent

Is a real estate salesperson a Realtor?

No. Although you may hear them used interchangeably, "real estate salesperson" and "Realtor" have distinct meanings.

In most places, a real estate salesperson is an agent who holds the state's entry-level real estate license. But in every state, the title "Realtor" is reserved for members of the National Association of Realtors. A salesperson may be a Realtor — but only if they join NAR.

» MORE: How to become a Realtor

Will it cost more to use a Realtor than another real estate agent?

No. In general, it shouldn't cost more to use a Realtor than another real estate agent.

Most agents work for commission, which the seller typically pays out of their sale proceeds. The average commission rate is 5-6% of the property's sale price, divided between the buyer's and seller's agents (who split their commission with their brokerages).

Sellers can often save money by negotiating a lower commission rate with their agent.

» MORE: What Is Realtor Commission?

How do I find out if an agent is a Realtor?

You can verify that a real estate agent is an active member of the National Association of Realtors by checking the organization's directory.

Is Realtor always capitalized?

Technically, yes. Realtor is a registered trademark of the National Association of Realtors, and according to NAR, it should always be capitalized.

However, contrary to these guidelines, "realtor" is commonly used as a generic term for real estate agent. In this context, it's usually not capitalized.

What year was the term Realtor approved by the U.S. Patent and Trademark Office?

The U.S. Patent and Trademark Office (USPTO) approved the Realtor trademark in 1950, more than 30 years after the term's invention in 1916. The National Association of Realtors (NAR) won the trademark for the plural form of the term — Realtors — in 1949.

The post What Is a Realtor? appeared first on Semya-Moya.

A real estate agent is a person licensed to represent buyers or sellers in real estate transactions.

In general, real estate agents earn commission instead of drawing a salary. That means they pocket a percentage of a property's sale price when they close a deal.

But there's a catch: real estate agents usually don't make anything when a sale falls through.

Agents work for a brokerage, a company that handles the nuts and bolts of real estate transactions, serving as a middleman between the buyer and seller.

» LEARN: How to become a real estate agent

What does a real estate agent do?

A real estate agent's job description includes a myriad of duties, but they all add up to two goals:

1. Making their client's sale or purchase a success
2. Making the process less daunting

What real estate agents do for sellers

A skilled real estate agent helps a seller maximize their odds of selling their home quickly for the best price possible.

Preparing to sell

Before the house goes up for sale, the agent advises the seller on how to increase its marketability. They recommend repairs and updates that raise the home's value, plus provide tips on how to boost its "curb appeal" to lure potential buyers.

Once the seller is ready to put their home on the market, the agent helps them decide on a list price. This involves performing a comparative market analysis (CMA), a professional evaluation of what the property is worth in the current market.

Marketing the home

The agent markets the home by posting it on the Multiple Listing Service (MLS), a private database where local brokerages advertise the properties they're selling. They may also market the home in other ways, including displaying it on their website, sharing the listing on social media, distributing flyers, or even posting an ad in the local newspaper.

Negotiating and closing the deal

The agent fields offers, helps the seller evaluate them, and negotiates on their behalf until they strike a deal with the buyer.

Finally, they assist with the paperwork and other logistics involved with getting to the "closing table," where the seller officially transfers ownership of the home to the buyer.

» MORE: 7 Benefits of Hiring a Real Estate Agent to Sell Your Home

What real estate agents do for buyers

A seasoned real estate agent boasts the expertise and market knowledge to help home buyers find the right property for their lifestyle and financial situation.

Finding the right home

The agent advises the buyer about the advantages and drawbacks of different neighborhoods, then leverages their MLS access to send the buyer new listings in their preferred location as soon as they hit the market. And when they show the buyer homes, they're often able to highlight features and faults the average person might miss.

Negotiating and handling home buying surprises

The agent negotiates on the buyer's behalf and serves as a resource during the "due diligence" process all the way through closing.

Along the way, the agent counsels the buyer about what home inspections they should perform, recommends service providers, and helps the buyer evaluate any issues an inspection uncovers.

» MORE: What Does a Real Estate Agent Do for a Buyer?

How much real estate agents make - and how they get paid

Most real estate agents get paid based on performance rather than collecting a salary. They earn a "commission" — usually expressed as a fixed percentage of the sale price — when they help arrange a transaction.

How real estate commission works

At the completion of a real estate sale, the seller pays their agent's brokerage a fee for handling the logistics of the transaction. The average real estate commission rate is 5-6% of the sale price, although this fee is negotiable.

» MORE: Negotiating Realtor Commission: Tips for Reducing Fees

Six percent of a home's sale price might seem like a lot, but an individual real estate agent usually earns only a fraction of the total commission.

• First, the commission is divided between the two brokerages representing the buyer and seller.
• Then, each brokerage splits their share of the commission with the agent who participated in the sale.

Commission split ratios vary quite a bit. A rookie agent might keep as little as 50% of the fees they earn and give the other half to their brokerage, while an experienced agent might keep 90% or more. However, many brokerages put an annual "cap" on how much commission an agent must split with the firm.

One other important note about real estate commission: agents typically don't earn anything when a deal falls through, no matter how much time and effort they spent trying to complete the sale.

How much real estate agents make

Real estate agent income varies widely based on license level and experience.

How much agents earn at different license levels

Agents with entry-level real estate licenses — usually called "salesperson" or "sales agent" licences — earn a median of $35,000 in gross income. Agents with broker licenses make a median of $78,900; that's more than twice as much as their lower-level counterparts[5].

There are two reasons that brokers earn so much more than entry-level agents. First, agent experience correlates closely with income, and agents ordinarily can't become brokers until they've spent multiple years working as full-time salespeople.

Second, many brokers start their own firms. This allows them to collect a share of the commission their agents earn, as well as keep 100% of the commission on sales they make themselves.

How much agents earn based on experience

A real estate agent's average earnings grow enormously the deeper they get into their careers. While the median gross income for agents with fewer than two years of experience is just $8,900, agents who've been at it for 16 years or longer earn a median of $86,500 — more than double the median U.S. wage of $39,810[6].

Types of real estate agents

Real estate agents may be categorized by their license level, specialty, or role in an individual transaction.

Real estate license types

There are two main types of real estate agent licenses:

• Salesperson
• Broker

Salesperson license

Getting an entry-level real estate license — called a "salesperson" license in most states — is usually fairly easy.

Requirements vary between states, but aspiring agents must spend a few dozen hours in a classroom, pass a licensing exam, and find a broker to "sponsor" their license.

An entry-level license authorizes the agent to arrange real estate transactions — but only under a broker's supervision. Technically, the agent's brokerage represents the client, while the salesperson serves as a "sub-agent" for the firm.

Importantly, a salesperson license does not authorize an agent to start their own real estate brokerage firm or manage other agents.

Broker license

After acquiring several years of experience, an agent becomes eligible to "upgrade" to a broker license.

A broker license broadens an agent's career options. It allows them to supervise other agents, open their own brokerage, and hire agents to work for them.

In most states, a broker license requires multiple years of full-time experience as a salesperson, additional education, and a passing score on the licensing exam.

Note: in a handful of states, the entry-level real estate license is called a "broker" license. These licenses are still essentially the same as salesperson licenses in other places.

Real estate agent specializations

Real estate is a broad career field, so many experienced agents choose to specialize in a particular niche.

Types of agents involved in a real estate transaction

Whether an agent specializes in a particular real estate niche or not, they wear different "hats" depending on who they represent in an individual transaction.

Here are the common roles agents play in real estate sales, along with who each type of agent represents:

Real estate agent vs. Realtor

While "real estate agent" is a term for anyone with a license to arrange real estate transactions, the title "Realtor" is technically reserved for members of the National Association of Realtors (NAR).

NAR is a private trade association founded to advance the interests of real estate professionals. It currently has around 1.4 million members, more than two-thirds of all active U.S. real estate licensees.

In addition to the right to use the Realtor trademark, members receive benefits like:

• Access to exclusive tools and resources
• Networking opportunities
• Professional development
• Group rates on insurance and other products

It's important to note that although most agents are Realtors, NAR is a private organization — not a licensing board. Membership is not necessary for an agent to practice real estate.

Moreover, Realtor membership is open to any real estate professional, including non-agents.

» MORE: What Is a Realtor?

Real estate agent vs. salesperson

A salesperson is a real estate agent with an entry-level license.

In most states, there are two main types of licensed real estate agents: salespeople and brokers. The salesperson license is easier to get, but salespeople can participate in real estate transactions only as a sub-agent of a broker.

Virtually all agents begin their careers with a salesperson license because it requires a little education but no previous experience. Many agents remain salespeople throughout their careers. Others upgrade to broker status so they can manage other agents or start their own brokerage.

Real estate agent vs. broker

A real estate broker is an agent with an "upgraded" license that authorizes them to perform certain duties agents with "basic" licenses can't, including opening their own brokerage and supervising other agents.

Broker licenses require additional education and experience compared to entry-level licenses. While new agents can typically get licensed after spending as few as 40 hours in a classroom and passing an exam, aspiring brokers must work as a full-time agent for multiple years before they're eligible to sit for the licensing exam.

Note: in some contexts, "broker" may mean "real estate brokerage" — a company that mediates real estate transactions between buyers and sellers.

» MORE: What Is a Real Estate Broker?

Do I need to hire an agent?

A real estate transaction is one of the most complex financial journeys you'll ever take, and you're more likely to achieve a successful outcome with an expert to guide you.

Why buyers should hire an agent

Working with an agent should be an easy decision for most home buyers. Ninety-two percent of buyers say their biggest challenge is either finding the right house, staying on top of paperwork, or understanding how the purchase process works. Each of those steps is a lot simpler when you have an agent on your side.

Besides, most buyers don't face any direct costs when hiring an agent — commission fees usually come out of the seller's proceeds — so it's rarely a good idea to buy a house without a professional to represent your interests.

Why sellers should hire an agent

Hiring an agent is an investment that pays off for most home sellers.

Many cost-conscious sellers believe they'll save money by listing their house for sale by owner (FSBO) or using a discount real estate broker. However, although reducing or even eliminating agent commission is an alluring prospect, the "savings" could turn out to be deceptively expensive in the long run.

In 2019, FSBO sellers sold their homes for a median of $80,000 less than sellers who used agents. So, while going the FSBO or discount broker route may make sense for some people, it might not be worth the hassle in your situation — and it won't necessarily net you more money.

If you think you're equipped to sell your home without an agent, check out our comprehensive guides on listing a house for sale by owner and selling with a discount broker.

We recommend finding ways to save on your home sale without cutting corners, including negotiating a lower commission rate with a top agent in your area.

How to become a real estate agent

Becoming a real estate agent is relatively straightforward. Below, we've outlined the steps to become an agent, basic requirements to obtain an entry-level license in each state, and how to decide whether you should launch a new career in real estate.

JUMP TO SECTION

• State-by-state licensing requirements
• Should I become a real estate agent?

Real estate agent licensing requirements: a state-by-state guide

Basic requirements and steps to licensure

Aspiring real estate agents face a relatively low barrier to entry. In most states, applicants for an entry-level license must be at least 18 years old, possess a high school diploma or GED, be eligible to work in the United States, and be able to pass a background check.

Before sitting for the licensing exam, applicants must complete their state's required pre-licensing education, which may be a specific course or a set number of classroom hours. Many states allow applicants to satisfy some or all of the education requirements if they've completed college-level coursework in real estate or have a law degree.

After passing their state's real estate exam, prospective agents must find a broker to "sponsor" their license. Remember: entry-level agents must work under a broker's supervision.

The final step is officially applying for licensure and paying the associated fees, which generally add up to a few hundred dollars. Agents must also complete continuing education to remain eligible to renew their licenses when they expire.

State-by-state guide

Find your state in the chart below to learn about the basic requirements to become an agent in your area, including what license you'll need and how much education you must complete.

The table below contains additional information about getting licensed as an agent in your state:

Should I become a real estate agent?

Before you invest the time, effort, and cash into getting a real estate license, you should carefully consider whether it's the right career for you.

Real estate is a lucrative profession for top sellers, but it's highly competitive. New agents typically make very little money, and many fail to ever turn selling homes into anything more than a side hustle.

If you want to succeed as an agent, you'll need to be a gifted communicator with a knack for solving problems and managing interpersonal conflicts. And since most agents are paid as independent contractors — not salaried employees — you should be prepared to treat your occupation like a business, even if you never start your own firm.

For more information about life as an agent, read about this career field in the U.S. Bureau of Labor Statistics' Occupational Outlook Handbook.

Top FAQs about real estate agents

Are all real estate agents Realtors?

No. Most real estate agents are Realtors — but not all of them.

"Realtor" is a trademarked term that refers to members of the National Association of Realtors (NAR), a private trade group open to real estate professionals.

An agent doesn't need to be a Realtor to obtain a real estate license or help people buy and sell homes.

However, it's important to note that "realtor" — with a lowercase "R" — is often used interchangeably with "real estate agent." It's like when people use "kleenex" to refer to facial tissue, even when they're not talking about the Kleenex brand. In this sense, all real estate agents are "realtors."

What is a real estate salesperson?

A real estate salesperson is an agent with an entry-level real estate license. The salesperson license qualifies an agent to represent buyers or sellers on behalf of a broker. Salespeople may not facilitate real estate transactions outside of a broker's supervision.

Can I have more than one real estate agent?

Short answer: you can use one agent to sell your home and a different agent to help you buy a new one. In other cases, it depends on your situation and whether you've signed an exclusive contract with a real estate agent.

If you have signed an exclusive representation agreement, you can't hire more than one agent to help you complete the same transaction. Before you can hire someone else, you'll have to terminate your contract with the first agent or wait for it to expire. Otherwise, you may still owe your first agent a commission when the deal closes — even if the other agent was the one who helped you complete the sale or purchase.

If you're looking to buy a home and you haven't signed an exclusive contract with an agent, you can look at potential properties with more than one agent. However, the agents may be upset when they learn you're working with someone else.

If you're selling a house and haven't signed an exclusive listing agreement, you can technically use more than one agent if they all agree to a non-exclusive listing arrangement. We don't recommend going this route. High-quality agents are more likely to balk at this request because it's more likely to be a waste of time for them, so the agents you do attract may not be the top sellers in your area.

Why does a real estate agent need a broker?

A real estate agent needs a broker if their real estate license does not authorize them to work independently. The majority of agents hold a "salesperson" license, which allows them only to practice real estate only on a broker's behalf.

Agents with broker licenses generally don't need to work for another broker, although regulations vary between states and some brokers choose to remain in salesperson roles even after upgrading their licenses.

The post What Is a Real Estate Agent? appeared first on Semya-Moya.

SimpleShowing is a discount real estate brokerage that offers low listing fees for home sellers and commission rebates for buyers.

Based on SimpleShowing reviews from past customers, the overall value seems legitimate. But you'll have a limited number of agents to pick from. And you may get less hands-on support compared with a traditional realtor.

If you want to save on commission when you sell your home, the best choice for most sellers is Semya-Moya. Sellers will pay a low 1.5% listing fee in exchange for full service and support from a top local agent. Interview as many agents as you want from well-known brokerages like Keller Williams and Century 21!

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

SimpleShowing, at a glance
SimpleShowing fees	1% (min. $3,500)
Buyer rebate	Up to 1.5%
Customer rating	5.0 (336 reviews)
Locations	FL, GA, and TX

Show more

What is SimpleShowing?

SimpleShowing is a 1% commission real estate brokerage with licensed agents who can help you buy or sell a home in three states: Florida, Georgia, and Texas.

If you're outside those markets, SimpleShowing may refer you to a local partner who isn't an in-house SimpleShowing Agent but has agreed to adhere to the company's pricing and service structure.

Unlike most big-name brokerages (think Century 21 and RE/MAX), SimpleShowing is a discount brokerage.

SimpleShowing offers solid value compared to many discount brokers we've reviewed. However, you should be aware of the potential trade-offs:

• SimpleShowing doesn't have very many agents, so you may not find one you like.
• Its agents juggle more clients than most other realtors, which could affect service quality.

We recommend comparing SimpleShowing reviews, service, and overall value against those of agents from a few other discount services or traditional brokerages to find the best fit for your situation.

Savings for home sellers — and some buyers

When you sell a house with SimpleShowing, you'll likely pay 3.5–4% in total realtor commission — up to 33% less than you’d pay with most traditional agents.

» MORE: How much does SimpleShowing cost?

Home buyers can save with SimpleShowing as well. The company refunds eligible buyers up to half of the commission it collects on their transaction.

» MORE: Learn how to qualify for SimpleShowing's home buyer rebate

Who should use SimpleShowing?

» COMPARE: SimpleShowing vs. top alternatives

Is SimpleShowing legitimate?

Yes, SimpleShowing is a licensed real estate brokerage in each of the states where it operates.

To date, the start-up has raised upward of $1.6 million, including more than $1 million from an equity crowdfunding round.[7][8]

Additionally, SimpleShowing is relatively transparent about what trade-offs to expect in exchange for its advertised savings. This helps potential customers evaluate whether it's the right fit given their unique needs and priorities.

That said, you'll have to do some digging to unearth fine-print details about SimpleShowing's services and pricing. In particular, you’ll need to look out for:

• Minimum fees for home sellers that vary by location
• Exclusionary criteria that may disqualify you from earning a home buyer rebate

How does SimpleShowing work?

SimpleShowing attempts to offset its discounted fees and commission rebates by lowering its operating expenses, relative to a conventional brokerage.

Currently, SimpleShowing cuts costs in three primary ways:

• Using technology to manage transactions more efficiently
• Requiring buyers to do more work during the early stages of the purchase process
• Encouraging buyers to purchase SimpleShowing homes without an outside agent

Buyers do more upfront work themselves

One reason SimpleShowing can offer large commission rebates is that it protects its agents' time by asking buyers to do more legwork themselves during the early stages of the purchase process.

While many traditional realtors spend time researching properties for buyers and meeting with them to discuss their situation, SimpleShowing doesn't step in until buyers are ready to start touring homes.

Additionally, buyers who want to tour more than five homes won't qualify for SimpleShowing's full rebate. These reduced savings reflect the extra time their agent spent working with them compared with the average customer.

Together, these policies allow SimpleShowing agents to offer full-service support while minimizing the time they spend dealing with "home browsers" who look at a bunch of properties but never make a purchase.

SimpleShowing uses technology to make the sales process more efficient

Like many other discount brokers, SimpleShowing has invested in developing technology to help its agents manage transactions more efficiently.

For example, SimpleShowing has partnered with title service Expetitle to offer their customers fully remote closings. While this is convenient for SimpleShowing clients, it also streamlines the process for agents.[9]

This tech-forward approach may allow SimpleShowing to serve more customers per agent than the average old-school brokerage without affecting service quality.

However, there's always the risk that if an agent gets overextended, they won't be able to provide the personalized support you need to achieve an optimal outcome.

SimpleShowing encourages outside buyers not to use an agent

Finally, SimpleShowing encourages outside buyers to tour homes from SimpleShowing sellers without an agent's representation.

Many SimpleShowing homes have a Self-Tour Lockbox that allows buyers to access the property for tours. Verified buyers can schedule these tours through SimpleShowing's app or website. If they want to purchase the home, SimpleShowing Agents are available to support them through offers, negotiations, and more.

Once the deal is complete, SimpleShowing collects TWO fees on the transaction: the 1% listing fee and a $995 buyer fee.

How much does SimpleShowing cost?

SimpleShowing doesn't cost home buyers anything out of pocket. But if you sell a house with SimpleShowing, you'll likely be on the hook for two different fees:

• SimpleShowing listing fee
• Buyer's agent commission

SimpleShowing charges a flat 1% listing fee. In most cases, you'll also offer a separate 2.5–3% commission to the buyer's agent.

Note that SimpleShowing does offer a service that could help some sellers save on buyer's agent commission too.

If an unrepresented buyer tours your home using a Self-Tour Lockbox and purchases it with the help of a SimpleShowing Agent, you won't pay a percentage-based commission to the buyer's agent. Instead, you'll pay a flat $995 buyer fee, regardless of the sale price.

SimpleShowing sellers COULD save an average of $7,125

SimpleShowing sellers save an average of $7,125 compared with listing with a traditional real estate brokerage. However, your actual savings could vary depending on the minimum fees in your area.

Here's how the potential savings break down across four different price points:

» MORE: The top 1% commission realtors (2022 rankings)

Watch out for SimpleShowing's minimum fees

SimpleShowing doesn't clearly list its commission minimums on its website. One page suggests sellers will pay at least $3,500, but the website also states that minimum fees vary by market.[10]

If you're selling a lower-priced home, ask if the minimum fee could affect your savings. And make sure to compare that rate against other discount services — as well as top-selling traditional realtors — to guarantee you're getting the best overall value.

How good are SimpleShowing Agents?

SimpleShowing Agents are fully licensed. With a few minor differences, they provide the same general range of services and support as traditional realtors.

That said, there are a few factors that could affect your experience.

SimpleShowing Agents juggle more clients

SimpleShowing Agents close around 20–30 transactions per year, roughly double the amount of the average realtor. This could lead to problems if your sale or purchase gets complicated.[11]

If your agent is juggling too many sales at once, they may not be able to provide the dedicated support you need during the crucial stages of your transaction, from negotiating the purchase agreement to resolving inspection issues and other surprises.

That said, these risks don't appear as pronounced at SimpleShowing as at some of the other discount brokers we've reviewed.

Because it asks buyers to do more upfront legwork and invests in tech to help agents manage transactions more efficiently, SimpleShowing may be able to handle more customers per agent than the average brokerage without a big impact to service quality.

Agent selection is limited

If you want to take advantage of SimpleShowing's advertised savings, you'll have limited options when it comes to selecting an agent.

It's important that you list with the agent who's the best fit for your situation. After all, saving $7,000 on realtor fees is great. But if your house sells for $20,000 less than it's really worth, you're not really coming out ahead!

If you find a SimpleShowing Agent in your area who checks all the boxes, that's great. But we recommend interviewing a few other agents so you can weigh different options and find the one with the expertise to help you achieve the BEST outcome possible.

How does SimpleShowing compare to top alternatives?

SimpleShowing offers solid savings for home sellers

If you're looking to save on realtor commission and don't want to skimp on service quality, SimpleShowing's 1% listing fee may be a good fit.

That said, depending on your situation and needs, other discount services may offer better overall value.

If you're selling a more expensive home, you could save even more with a discount service that charges a flat fee rather than a fixed commission percentage. And if you're comfortable going the DIY route, you could avoid paying a realtor altogether by selling your home on a flat fee MLS listing service.

» MORE: Which company offers the lowest real estate commission?

SimpleShowing's home buyer rebate offers legit savings too

SimpleShowing also offers one of the better commission rebates among the discount brokers we've reviewed.

That said, depending on your location, you may find an even better rebate with another company.

Just remember that these rebates have lots of terms and restrictions, no matter what company you buy with. Always read the fine print up front to make sure your purchase will qualify for the largest refund possible.

» MORE: Learn how to get a home buyer rebate

Fewer service-level risks than most discount brokers

Many discount brokers mislead consumers by claiming they offer the exact same "full service" experience as traditional realtors.

However, SimpleShowing is up front about how it creates savings. This makes it a lot easier for consumers to decide whether the potential savings are worth the trade-offs. And by and large, its approach seems to have fewer built-in risks for most consumers than some of the other brands we've reviewed.

SimpleShowing requires buyers to do a lot of self-directed house hunting. Agents are available to answer questions, but they don't provide much hands-on support until clients are ready to start touring homes. They also limit their maximum commission rebate to buyers who tour five or fewer homes before making a purchase. These policies protect agents' time, reduce the company's overhead, and allow it to offer some solid savings.

Selling with SimpleShowing

When you sell with SimpleShowing, you'll get the same basic range of services you'd expect from a traditional realtor. This includes assistance with things like:

• Pricing
• Professional photos
• Marketing and an MLS listing
• Fielding offers and negotiating
• Paperwork and other logistical matters
• Closing coordination

SimpleShowing does state on its website that it doesn't provide a few "silly" services, such as printed flyers and balloons for open houses.

Additionally, there are two significant differences between working with SimpleShowing and a conventional brokerage.

You could save even more with SimpleShowing's Self-Tour Lockbox

One unique feature SimpleShowing offers home sellers is an optional Self-Tour Lockbox that allows verified buyers to schedule and conduct home tours even if they don't have an agent.

If you sell to a Self-Tour buyer who isn't represented by an agent, you'll pay SimpleShowing a $995 buyer fee instead of the percentage-based buyer's agent commission you advertised on the MLS.

The reality is that most buyers work with an agent. But if you find one who isn't, it could translate into HUGE additional savings on top of what you'll already save with the 1% listing fee:

Just remember that you'll avoid the normal buyer's agent commission ONLY if the buyer purchases the house without an agent's representation.

So, if they tour your home using the Self-Tour Lockbox but submit their offer through an outside agent, you'll still owe their agent whatever commission rate you advertised on the MLS.

High-volume approach could increase the risk of problems

The biggest built-in disadvantage to selling with SimpleShowing is that their agents handle roughly twice as many customers as the average realtor.

If your agent gets bogged down with too many deals at once, they may not be able to provide as much hands-on service as you'd expect during a complex — and often very stressful — financial transaction.

» SAVE: List with a full-service realtor for just 1.5%

Buying with SimpleShowing

SimpleShowing works primarily with buyers who already have a good idea of the kind of home they want to purchase. Aside from that, buying with SimpleShowing should be a similar experience to using a conventional real estate agent — with two main differences.

In terms of support, SimpleShowing realtors don't step in until you've already done your research and picked out a few homes to tour. From that point on, they'll walk you through your purchase just like any other full-service realtor.

Another difference is that SimpleShowing offers a rebate on the buyer agent commission. However, to earn the rebate, you're limited to touring five homes. After that, the rebate is lowered by 5% for each set of five homes that you tour.[13]

SimpleShowing offers a 1.5% commission rebate for ELIGIBLE buyers

The biggest advantage to buying with SimpleShowing is the potential to earn a commission rebate. Buyers who qualify will receive a maximum of half of their agent's commission, up to 1.5% of the sale price.

How much can buyers save with SimpleShowing?

SimpleShowing claims the average buyer who receives a refund saves about $5,000. However, your actual savings depend on your eligibility, price point, and how quickly you find the right home.

Assuming your purchase qualifies for a rebate, here's the maximum you could expect to save across different price points:

Because of SimpleShowing's $3,500 minimum commission, you have to buy a home worth at least $235,000 — or more if the buyer's agent commission rate is lower than 3% — to qualify for the full rebate.

And since the rebate applies only if your agent pockets at least $3,500, purchases below $120,000 won't be eligible for a refund at all.

» MORE: What company offers the best home buyer rebate?

Compare your options to find the right buyer's agent

SimpleShowing offers a pretty attractive commission rebate, but that doesn't automatically mean it's the best choice for your situation.

Other services — or even traditional realtors — may:

• Offer comparable built-in rebates and savings opportunities
• Provide more hands-on support throughout your entire purchase
• Be better suited to your needs and priorities

That's especially true if you're not very familiar with the area where you're buying.

SimpleShowing's model supports buyers who are a bit further along in the home search. You're more likely to have a positive experience if you already have a good idea of the ZIP code, price point, and timeline at which you want to purchase a home.

If you think you'll need a realtor's help in figuring out a price range or which area is the best fit, you may be better off with a different brokerage.

Remember that it pays to shop around! As a buyer, you don't have to pay your agent's fee out of pocket. You have nothing to lose — and everything to gain — by taking the time to explore your options and find the best overall fit.

SimpleShowing customer reviews

Customer reviews of SimpleShowing are generally very positive, with an average rating of 5.0 out of 336 total reviews.

As with any real estate brokerage, you should keep a few things in mind about SimpleShowing's customer rating.

• Companies typically solicit reviews from happy customers — not ones who had negative experiences
• Each reviewer's opinion is heavily influenced by the quality of their individual agent — not necessarily the company as a whole

That said, customer reviews can be extremely useful. Look for consistent trends among positive and negative reviews to learn about what people have generally liked — or haven't liked — about their experience.

So what are past customers saying about SimpleShowing?

What customers like about SimpleShowing

My SimpleShowing Agent was 'amazing'

Here's an example of a positive Zillow review from a home seller who was extremely satisfied with SimpleShowing.

They specifically called out the quality of their agent, who was "super professional" throughout the process.

'No better way to buy'

This Trustpilot reviewer purchased a house in Atlanta with SimpleShowing. In addition to having an "awesome" experience with their agent, they received a commission rebate that saved them several thousand dollars.

What customers DON'T like about SimpleShowing

We were 'extremely disappointed' with SimpleShowing

Here's an example of a negative Zillow review from a home seller who wasn't pleased with the support SimpleShowing offered during their sale.

The customer specifically mentioned feeling that SimpleShowing was so focused on buyers that it didn't provide enough service to its sellers.

We had a great experience with one exception

Overall, this seller had a great experience selling with SimpleShowing. But they felt like their agent didn’t provide enough support when they were completing their seller disclosures, which cost them some money at the closing table.

SimpleShowing app reviews

Although the SimpleShowing app has been around for several years, it hasn't gained much traction.

To date, it's only been reviewed 21 times, with an average rating of 3.9.

While reviewers have great things to say about SimpleShowing, the consensus is that the app is a bit clunky compared with the company's website.

Conclusion: Is SimpleShowing the right choice for you?

SimpleShowing is a totally legitimate real estate brokerage. Its agents have helped many home buyers and sellers save on realtor commission.

Whether it's the right choice to you ultimately depends on:

• Your individual needs and priorities
• Your price point
• The quality of the SimpleShowing Agents in your area

Generally speaking, SimpleShowing offers solid savings for buyers and sellers alike. However, its commission rebate restrictions, high-volume approach, and limited service area mean that some consumers may find better value elsewhere.

We recommend interviewing 2–3 different realtors from different companies. Compare rates, experience, and personalities to find the perfect match.

FAQs about SimpleShowing

Locations and contact information

Corporate office contact info

SimpleShowing service area

As of 3/28/2023, SimpleShowing has in-house agents in the following markets.

Note: if you're outside SimpleShowing's service area, the company may refer you to a local partner agent who works for another brokerage but has agreed to adhere to SimpleShowing's pricing model.

The post SimpleShowing Reviews 2022 appeared first on Semya-Moya.

Your best bet is to find and fix the damage before you put your home on the market. Your house will be easier to sell, and you'll likely get a better price — one that could more than cover the repair costs.

If that's not an option, either because you're unwilling or unable to pay for the foundation repairs, you'll most likely have to disclose the damage. This could complicate negotiations with buyers, making it harder to sell quickly and for an attractive price.

The good news is that foundation issues are often less expensive to repair than you might think. In fact, you may be able to fix some minor problems yourself. There are also financing options that can help cover or defray the out-of-pocket costs.

In this article, we'll outline everything you need to know about selling a house with foundation problems — including how to identify potential issues, typical repair costs and financing options, and when it makes sense to sell "as is."

JUMP TO SECTION

• Why foundation problems make it harder to sell your house
• Do I have to disclose foundation issues?
• Should I fix foundation issues or sell my house as-is?
• Home foundation issues and average repair costs
• Foundation problems you can fix yourself
• Does homeowners insurance cover foundation repairs?
• How to pay for foundation repairs
• What if the buyer's home inspection reveals foundation problems?

Why foundation problems make it harder to sell your house

Fixing foundation issues can be a major headache, but so is trying to sell a house with unrepaired structural damage.

More than half of all home buyers consider foundation problems a "deal breaker." By not addressing damage before listing, you run the risk of your house languishing on the market for far too long or selling for a far lower price than you hoped.

Buyers who aren't scared away may face challenges obtaining a mortgage, depending on the scope of the issue. Most lenders won't underwrite conventional loans on homes with major structural defects. Buyers may be able to get a rehabilitation loan, but the process requires more time and effort than most will be willing to give.

Do I have to disclose foundation issues?

In most states, home sellers are legally required to disclose foundation defects — along with other information about the property — on a standardized disclosure form.

Even if it’s not required, it's almost always a good idea. According to a report from Zillow, more than 80% of buyers hire a home inspector, so there's a solid chance they'll uncover evidence of the problems anyway.

The handful of states that don't require sellers to make comprehensive disclosures about their houses are called "Caveat Emptor" or "buyer beware" jurisdictions. The following states generally follow Caveat Emptor principles:

• Alabama
• Arkansas
• North Dakota
• Virginia
• West Virginia
• Wyoming

However, you may be subject to local regulations even if you're selling in a Caveat Emptor state, so you should consult with your real estate agent to determine what disclosures you're required to make.

What about past damage I've already repaired?

Depending on your state’s specific disclosure requirements, you may or may not have to disclose past foundation repairs. But as long as you had a qualified professional complete the work, past foundation repairs are advantageous — not something you want to hide from prospective buyers.

Quality foundation repairs should last for the lifetime of the house, and many repair companies offer lifetime warranties that are transferable to future owners.

If you're concerned past foundation work will make buyers nervous, hire a structural engineer to inspect the foundation before you list, then make the inspection report available to buyers.

Should I fix foundation issues or sell my house as-is?

If possible, it's better to address foundation issues before listing your house. As-is listings essentially advertise that a home has problems the seller doesn't want to fix, which scares most ordinary home buyers away.

As-is sales do attract one type of buyer — investors — but they're going to pay a lot less than market value for distressed properties.

At the very least, you should pay for a foundation inspection, so you can find out how much the problem costs to fix before you decide to sell your house as-is.

What to know about selling your house as-is

When you sell a home as-is, you're telling buyers up front that they're going to have to accept the property in its current condition — you're not going to repair anything.

Although most sellers come out ahead if they address repairs themselves, there are situations where it makes sense to sell as-is.

Most often, people sell as-is because they can't afford to make the repairs, need to sell quickly (and can't risk an uncertain construction timeline), or worry the repairs won't add enough value to justify the time and money.

If you decide to pursue an as-is sale, you have two options:

• List your house as-is. This looks a lot like a traditional home sale. You can work with a real estate agent who will advertise your home and communicate with buyers' agents on your behalf.
• Sell directly to a "we buy houses for cash" company." These sales are usually fast — most close in just seven to 30 days — but may net you a lower price than listing the house on the market.

Either way, you should expect the final sale price to be well below market value. Many investors adhere to the "70% rule": they generally won't pay more than 70% of a house's after repair value (ARV) — minus the cost of repairs.

» MORE: "We Buy Houses for Cash" Companies: What You Need to Know!

Do I have to make foundation repairs before I list my home for sale?

No, you can list your house for sale in whatever condition you want. However, your best chance to maximize your home's sale price is when it first hits the market. If you expect to make repairs, you should aim to complete them before you list.

Besides, since you'll most likely have to disclose the problem to buyers anyway, you'll put yourself in a better negotiating position if you can document that the damage has already been fixed.

That said, you might decide to delay the repairs if:

• You can't pay for the repairs until after the sale. If you're unable to pay for the repairs before listing but you have plenty of equity, you can disclose the damage up front and offer buyers a repair credit at closing.
• You're selling in a hot real estate market. If your local market has lots of buyers but few homes for sale, buyers may be willing to buy a house that needs repairs.
• You're selling in a Caveat Emptor state. If you're selling in a Caveat Emptor or "buyer beware" state, you may decide to list your house first and wait to see if the buyer discovers the foundation issues during the inspection period. However, this is risky — inspection "surprises" are one of the top reasons buyers back out of contracts.

Should I fix foundation cracks that are just cosmetic?

You don't have to fix foundation cracks that are just cosmetic, but it's usually prudent to repair them if you think a buyer will discover them during a home tour.

The average buyer won't know the damage is just cosmetic. Although a foundation inspection would prove the cracks aren't serious, many buyers will write your house off immediately instead of paying a structural engineer to take a closer look.

Sealing foundation cracks rarely costs more than a couple of hundred dollars. And if you're reasonably handy, you can likely complete this repair yourself.

How to pay for foundation repairs

The typical homeowner pays around $4,500 to fix common foundation issues, although repair costs vary tremendously based on the severity of the damage and the nature of the repair. You'll also need to budget for a foundation inspection, which could cost $300-1,000, depending on the size of your house.

Don't worry if you don't have enough savings to pay for the repairs out of pocket. While homeowners insurance probably won't cover the damage, most people can get financing. And you might be able to defray the total cost by fixing minor problems yourself.

Home foundation issues and average repair costs

Here are common signs of foundation issues and what you should expect to pay to fix the underlying problems:

And here are the repairs a structural engineer might recommend for common foundation problems, along with their typical costs:

Foundation problems you can fix yourself

While most foundation repairs require a qualified professional, there are several smaller problems handy homeowners can tackle themselves.

Unless you're just sealing hairline cracks, you should hire a structural engineer to inspect the foundation before attempting to fix any of the damage yourself.

Never attempt serious repairs yourself unless you're qualified. It's a safety issue, and for major projects, you'll have a much easier time convincing buyers the repairs are sufficient if you hire a professional.

Does homeowners insurance cover foundation repairs?

Probably not — homeowners insurance policies will usually only pay for foundation repairs if the damage is the byproduct of another covered risk. Most structural problems occur slowly over time, and insurance rarely covers damage caused by neglect.

For example, homeowners insurance will likely cover the repairs if a pipe bursts suddenly, flooding your crawl space and causing mold growth. However, insurance won't pay to fix your foundation if the same pipe had a slight leak that encouraged mold formation over a period of years.

If you want to be certain, call up your insurance agent and ask. It will probably be difficult to find out just by reading your homeowners insurance policy.

How to pay for foundation repairs

Homeowners can pick from a wide array of financing options for foundation repairs. What's best for you will depend on factors like your anticipated repair costs, credit score, sale timeline, and tolerance for revolving credit.

Don’t be dissuaded from financing the repairs just because you have poor credit. On the one hand, a lower credit score can increase the interest rate you pay as much as four times over. On the other, a high interest rate loan might still be worth it if your home sells quickly — just make sure to pay it off immediately after the sale.

And since you're planning to pay the funds back quickly, you should also be careful to avoid loans that have prepayment or early termination penalties. That's especially true if you take out a home equity loan or line of credit (HELOC); these loans are tied to your ownership of the house, so you have to pay them back as soon as you sell the home.

What if the buyer's home inspection reveals foundation problems?

It's always preferable to find and fix foundation problems before you put your house on the market, but if a buyer discovers damage during a home inspection, you may still be able to salvage the sale.

The first thing the buyer will do is decide whether to hire a structural engineer to conduct a comprehensive foundation inspection or void the contract. If they hire an engineer, it shows they're still very interested in purchasing your house. However, you should be prepared to renegotiate based on the report's findings.

Negotiating seller concessions on a house with a bad foundation

Following the foundation inspection, the buyer will submit a revised offer based on the structural engineer's recommendations. They'll likely start by asking you to make every recommended repair before closing, but repairs aren't the only thing you can offer to buyers to re-seal the deal.

Here are four common concessions you can make to compensate buyers for undisclosed damage, along with their advantages and drawbacks:

You're under no obligation to agree to any concession, but you'll likely have to give the buyer something if the damage is severe and if they didn't know about it when they initially signed the contract.

When negotiating concessions, you should attempt to assess your leverage honestly. That includes analyzing the situation from the buyer's perspective. Here are some questions you should discuss with your agent as you evaluate counter offers.

• How much will the repairs cost?
• Will the buyer lose financing if you don't make the repairs?
• What does the buyer's moving timeline look like? What about yours?
• How long has your home been on the market?
• Are there similar local houses in better condition, or is inventory tight?
• What is your risk tolerance?
• What would you do to address the damage if the sale falls through?

Unless the buyer is being unreasonable, try to be flexible. Seeing a home go "back on the market" is a red flag to buyers' agents, and it's unlikely that you'll find a buyer willing to pay market value for your home in its present state.

On the other hand, remember that you're not the only one with something to lose. The buyer clearly pictures themself living in your house. And by this stage in the process, they've probably invested close to $1,000 on it between their two inspections alone.

Can the buyer back out of the sale?

If you and the buyer fail to reach a new agreement, they may void the contract. Buyers are generally allowed to back out of real estate transactions as long as the contract has an inspection contingency and they void the agreement during the formal inspection period.

In the rare case that the contract doesn't include an inspection contingency or the buyer backs out after the inspection period is over, they may forfeit any earnest money they deposited when you signed the contract. However, outside of a lengthy and expensive lawsuit, you have little recourse to force them to complete the sale.

Related links

The Best Low Commission Realtors (2023 Broker Rankings)

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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 2% Commission Realtors of 2024

Listing with a 2% commission realtor can save you thousands, but what's the catch? Read on to learn where to find a 2% listing fee and what you'll get in return.

Negotiating Realtor Fees: 11 Expert Tips to Reduce Commission

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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 How to Sell a House with Foundation Problems appeared first on Semya-Moya.

Purplebricks is a discount real estate brokerage available to home sellers and buyers in the United Kingdom.

The company tried — and failed — to establish a foothold in the U.S. back in 2017, suspending its U.S. operations less than two years later in 2019.

If you’re looking for low-cost listing services in the U.S., Purplebricks is no longer an option — but there are plenty of other companies that can help you sell your house for a discounted rate.

» MORE: Compare the best low commission real estate brokerages near you

Purplebricks continues to be an industry leader in the U.K., although a series of review scandals have done some damage to its reputation. Read on to learn more.

What is Purplebricks?

Purplebricks is a discount real estate broker based in the U.K. The company owns a major stake in a similar German brokerage called Homeday. Until 2019, it had operations in Canada, Australia, and the United States.[15]

Purplebricks’ core offering is discounted listing fees for home sellers. Sellers can list their home with a Purplebricks agent for a low, flat fee. The potential savings are significant — but so are the risks.

Purplebricks expanded aggressively — then retreated back to the U.K.

After becoming a market leader in the U.K., Purplebricks embarked on an aggressive international expansion effort.

By 2018, the company had opened up shop in the U.S., Australia, and Canada, and had acquired major stakes in German and Canadian subsidiaries.

One by one, however, each expansion fizzled.

Expensive marketing campaigns failed to generate a sustainable customer base, causing Purplebricks' stock price to crater.

Source: TradingView

Purplebricks pulled out of Australia and the U.S. in 2019. It sold its Canadian subsidiary in 2020, although the new owner retained the right to use the Purplebricks branding until December 2021.[16][17]

Today, Purplebricks remains a major force in the U.K. — and is hanging on in Germany via Homeday.

» LEARN: How to save on real estate commission in the U.S.

Best U.S. alternatives to Purplebricks

Purplebricks is no longer available in the United States, but home sellers still have LOTS of options to save on real estate commission.

Unlike Purplebricks, these companies charge "pay-for-performance" fees. This means you won't owe them a dime unless your house sells.

Discount brokers offer savings — but come with service-quality risks

Redfin and REX are discount brokerages. Like Purplebricks, they "create" savings by handling a higher volume of customers with an in-house team.

However, these cheap listing fees come with service-quality risks. Agents juggling lots of customers have less bandwidth to provide hands-on, personalized service throughout the sale.

Why agent-matching services may be a better choice than discount brokers

Agent-matching services like Clever are different. They pre-negotiate discounted rates with traditional realtors, so sellers can save on commission without compromising on service quality.

Here's how these services work:

• Most realtors charge 3% commission rates because they spend a TON of time and money to build their brand and attract new customers.
• Agent-matching services send their partner agents a steady supply of business at zero upfront cost.
• As a result, partner agents can charge lower rates, provide first-class service, and still turn a profit.

The best part? The top agent-matching services are 100% free for consumers — with zero strings attached.

Why Purplebricks USA failed

Purplebricks failed in the U.S. because it spent a HUGE amount of money on advertising and failed to attract enough customers to become profitable.

In a nutshell, Purplebricks USA was spending approximately $5 in advertising for every $1 it earned. It doesn't take an economics degree to recognize that’s not going to keep a company afloat for very long...

Purplebricks USA bet big on an ill-fated advertising blitz

According to real estate tech analyst Mike DelPrete, Purplebricks USA burned through a $20 million marketing budget between June and December 2018.[18]

During that same period, Redfin — the largest discount real estate broker in the U.S. — spent roughly $16 million on marketing.

Purplebricks USA’s ad blitz netted approximately 1,200-1,400 new listings, translating to an average cost of $15,000 to attract one new customer. In other words, it was burning $15,000 to earn back $3,200 in revenue.

Redfin’s smaller advertising budget yielded a whopping 22,000 closed transactions, or an average of $730 spent per new customer acquired.[18]

Source: Mike DelPrete

At face value — and particularly in contrast to Redfin’s numbers — Purplebricks USA's marketing strategy appears nothing short of disastrous.

Why would any business — especially one with so much past success — let this happen? To answer that question, we need to explain how Purplebricks makes money.

How does Purplebricks make money?

To remain viable, discount brokers like Purplebricks must find ways to offset the savings they offer consumers.

Purplebricks aims to do this in three primary ways:

• Reducing the cost of acquiring new customers
• Working with a higher volume of customers per agent
• Collecting a fee from every customer, regardless of their outcome

Importantly, Purplebricks' pricing model is only profitable at scale. Even with the nonrefundable fee, it has to attract a HUGE number of customers to make up for its hefty discounts.

In the U.K., this approach played out like clockwork. It's how Purplebricks became — and remains — a profitable powerhouse brokerage on its home turf.

Purplebricks confidently entered the U.S. ready to spend (and lose) a ton of money knowing that, if it caught hold, it could become profitable over time here, too.

Unfortunately, that’s not how things played out. There are many reasons Purplebricks USA flopped, but three stand out in particular:

• Americans didn’t want to pay upfront fees
• Its price point wasn’t competitive enough
• The company launched in the wrong U.S. markets

Purplebricks’ nonrefundable fees didn’t resonate with Americans

When Purplebricks first entered the U.S., it employed the same basic pricing model that helped it become the leading real estate agency in the U.K.[19]

U.S. sellers would pay a flat, upfront $3,200 fee (which it later raised to $3,600) that was non refundable — meaning they were on the hook whether Purplebricks USA successfully sold their home or not.

While these sorts of nonrefundable, upfront arrangements are common in the U.K., sellers in the U.S. typically pay success-based fees. In other words, agents and brokers collect their commissions ONLY if and when a home actually sells.

That made Purplebricks USA a riskier option than its U.S. competitors.

Purplebricks USA’s price point wasn’t competitive enough

Maybe customers would have accepted that additional risk if Purplebricks USA was really the cheapest option, but it wasn't...

The company entered into an already crowded marketplace with zero brand awareness or credibility AND a very middle-of-the-pack price tag.

Company	Listing fee*
Homie
Purplebricks
Trelora
Clever
Redfin
Traditional realtor
*Based on a sale price of $300,000

Show more

Considering U.S. home sellers had plenty of cheaper, more established options to choose from that also DIDN'T charge upfront fees, is it any wonder that Purplebricks USA struggled to gain traction?

» MORE: Which company charges the lowest real estate commission?

Purplebricks targeted the wrong U.S. markets

Purplebricks compounded its problems by launching in the wrong U.S. markets.

When Purplebricks entered the U.S., it targeted Los Angeles, San Diego, and New York City — three of the most expensive real estate markets in the country![20]

On the surface, these markets made sense. Since Purplebricks charges a flat fee regardless of home price, it offers the most savings in super-expensive areas.

But this strategy had three big flaws:

1. More competition among brokers and agents in high-end markets

Because home values were so high in these locations, the discount broker landscape was already competitive.

Purplebricks USA didn't just have to show customers it was a better deal than an old-school realtor. It also had to persuade them that it was superior to other discount services with more brand recognition — and better pricing models.

2. Higher advertising costs in major metro areas

It's incredibly expensive to advertise in Los Angeles and New York City!

Remember, Purplebricks USA's strategy relied on saturating the market with ads to build brand awareness. It could have stretched its marketing budget much further by picking metros where it didn't cost so much to run ads.

3. Purplebricks’ target consumers don’t live in high-end markets

Purplebricks targets cost-conscious consumers, so it may not have been the best fit for high-end markets where the average cost-conscious consumer can't afford to own a home. As Mike DelPrete notes, "It’s like taking a budget airline that caters to price-conscious families and launching a New York-to-London route for business travelers."[21]

Purplebricks eventually realized the flaws in its U.S. launch strategy. It scrapped its upfront fee and entered less expensive markets like Las Vegas and Phoenix.

Unfortunately, by then, it was already too late — and Purplebricks was forced to leave the U.S. for good shortly thereafter.[22]

Where does Purplebricks still operate today?

As of this writing, Purplebricks only operates in the U.K. It also retains a major stake in Homeday, a discount brokerage in Germany.

Purplebricks has established itself as the U.K.'s premier discount real estate agency brand. It listed more than 58,000 properties 2020. That translates into a 3.6% share of the overall U.K. sales market, which is more than double the size of its largest competitor.[23]

How much does Purplebricks cost in the U.K.?

Purplebricks charges U.K. home sellers a nonrefundable listing fee of £999 or £1,499 ($1,350-2,000), depending on their location:

Note that Purplebricks customers pay the entire listing fee whether their home sells or not. However, they can choose to pay this fee either up front or within 10 months of Purplebricks advertising their listing.

How much can you save with Purplebricks?

The average real estate commission rate in the U.K. is around 1.5%, so Purplebricks customers generally save big, especially when they sell more expensive homes.[24]

» MORE: Learn about selling with Purplebricks in the U.K.

Purplebricks review controversy

Purplebricks has been embroiled in several controversies over the years, mostly related to the credibility of its online customer reviews.

Customer reviews have always been a cornerstone of Purplebricks' marketing strategy, especially in new markets where it was attempting to build brand awareness.

Discount brokerages have long faced a stigma — sometimes deserved, sometimes not — that low prices mean subpar service quality.

To combat this stereotype, Purplebricks touts its excellent rating on third-party consumer review website Trustpilot as evidence that its customers have outstanding outcomes.

As of 10/21/2022, Purplebricks has an average rating of 4.9 out of 1821 total reviews on Trustpilot.

Does Purplebricks 'game the system' on consumer review websites?

However, critics have raised numerous questions about the validity of Purplebricks' Trustpilot rating.

The company has faced accusations that it attempts to "game the system" with tactics such as:

• Asking customers to leave reviews before their home has sold
• Only asking "happy" customers to leave reviews
• Flagging negative reviews as suspicious to attempt to get them removed from Trustpilot

Purplebricks faces 'corporate bullying' accusations

Critics have also accused Purplebricks of "corporate bullying" for its behavior toward allAgents, a website where consumers review U.K. real estate agents.

While Purplebricks' Trustpilot rating is pristine, its customer rating on allAgents is currently an abysmal 1.2 out of 357 reviews.

Purplebricks issued legal threats to allAgents in 2017, demanding that the website remove negative reviews it claimed were fake. The U.K.'s Advertising Standards Authority later rejected a Purplebricks complaint alleging that allAgents was deliberately soliciting negative Purplebricks reviews.[29]

The review scandal spreads

Finally, in 2019, Purplebricks' Canadian subsidiary reportedly offered staff members days off in exchange for getting friends and family members to post made-up positive reviews on Facebook and Google.[30]

Always do your due diligence before hiring ANY agent

Purplebricks' series of review scandals demonstrate why you can't always take a company's overall customer rating at face value. That said, reading individual customers reviews CAN teach you a lot.

Look for themes that consistently appear in both positive and negative reviews to get a general sense of things like:

• What customers like/don't like about the company
• Built-in advantages and drawbacks

Remember: selling a home is one of the biggest financial transactions you'll ever make. It's crucial to do your research before hiring any real estate agent or service.

We recommend interviewing at least 2-3 different realtors from different companies. Compare rates, service offerings, and overall value to make sure you find the perfect fit for your situation and goals.

FAQs about Purplebricks USA

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