June 16, 2024
Low Commission Realtor

What is a Low Commission Realtor? How to Take Advantage of Savings

When it comes to buying or selling a home, one of the biggest decisions you’ll make is choosing a real estate agent. While traditional realtors may charge a commission of 5-7%, a low commission realtor can provide significant savings. In this article, we’ll discuss what a low commission realtor is, how they operate, and the advantages and disadvantages of working with them.

What is a Low Commission Realtor?

A low commission realtor, as the name implies, charges a lower commission compared to the standard 5-6% commission charged by most traditional realtors. These realtors typically charge a flat fee, like this Edmonton realtor. Others, offer a reduced percentage of the sale price, ranging from 1-3%. This can save sellers thousands of dollars on a home sale.

How do Low Commission Realtors Operate?

Low commission realtors operate similarly to traditional real estate agents. However, there are a few key differences to be aware of. Here are some of the ways that low commission realtors operate:

They Offer a Reduced Commission Rate

The most significant difference between low commission realtors and traditional agents is the commission rate. Low commission realtors charge a lower percentage of the sale price or a flat fee, which can save you thousands of dollars. For example, if you sell your home for $500,000 and your low commission realtor charges a 2% commission rate, you would pay $10,000 in commissions, compared to $25,000 with a traditional agent charging a 5% commission rate. This must make you wonder though, how are they able to do the same job while saving you so much money?

They Provide a La Carte Services

Low commission realtors often provide a la carte services, meaning that you can choose which services you want to use and which ones you don’t. For example, you may choose to use their marketing services but not their home staging services. This allows you to tailor their services to your needs and budget. This is a great option, as most people don’t live in homes THAT much different than their neighbors. Many times, the additional marketing your realtor provides goes unnoticed. The realtor mentioned above has two levels of service, each with a reduced commission. While a company like Compass has a normal listing service and their Concierge service – each company offers a chance to save on commissions.

They Use Technology to Streamline the Process

Many low commission realtors use technology to streamline the buying and selling process. For example, they may use virtual tours, online contracts, and digital signatures to make the process more efficient. This can save you time and make the process more convenient. Many services, also save on not having Brick and Mortar office space.

They May Have Fewer Resources

One potential downside of working with a low commission realtor is that they may have fewer resources than traditional agents. For example, they may not have as large of a marketing budget or as many staff members to assist with the transaction process. However, this isn’t always the case, and many low commission realtors offer the same level of service as traditional agents. So, it is important you ask about their marketing and conveyancing competencies.

They May Not Have as Much Experience

Another potential downside of working with a low-cost realtor is that they may not have as much experience. This isn’t always the case, but it’s essential to do your research. Here’s a handy guide on how to choose a realtor. In some markets, the Best Realtor is the low commission one, while large cities like New York may have more opportunities for agents to add value.

Advantages of Working with a Low Commission Realtor:

  • Cost Savings: The most significant advantage of working with a low commission realtor is the potential cost savings. Traditional realtors charge a 5-6% commission on the sale price, which can add up to tens of thousands of dollars. A low commission realtor can reduce that cost significantly, freeing up money for other expenses.
  • Flexibility: Low commission realtors often offer a flexible pricing structure that allows sellers to choose the services they need. This can be especially helpful for sellers who are experienced in the home selling process and may not require as much assistance from a realtor.
  • Local Expertise: Low commission realtors may specialize in specific areas, allowing them to provide in-depth knowledge of the local market. This can be particularly useful for sellers who are selling in a specific neighborhood or town.
  • Professionalism: Low commission realtors are still licensed professionals who are bound by ethical standards and must follow state and federal laws. They are also held to the same standards of professionalism as traditional realtors.


Working with a low commission realtor can provide significant cost savings for sellers. However, it’s important to carefully weigh the advantages and disadvantages and choose a reputable low commission realtor like Logan Patterson who can provide quality service and prioritize the seller’s interests. Ultimately, the decision to work with a low commission realtor will depend on the seller’s unique needs and preferences.

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Written by
Richard Wilson
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Written by Richard Wilson