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Can I Sell My House Without Paying a Full Commission?

Get the inside scoop on Atlanta’s hottest real estate trends and investment strategies.

If you’re planning to sell your house, you’ve probably thought about how much commission real estate agents charge. The standard commission rate can range from 5-6% of the home’s sale price, meaning you could lose thousands of dollars to fees. But what if there was a way to sell your home without paying the full commission? The good news is, there are several options available today that allow you to save on commission costs while still getting professional help.

Imagine you’re like Tom, a homeowner ready to sell in a hot market. With his home valued at $800,000, Tom was excited about his potential profit. But when his agent quoted a 6% commission—$48,000 of his hard-earned equity—he started looking for alternatives. Tom knew he didn’t want to go through the stressful process of selling his house by himself, but he also didn’t want to lose that much money to agent fees. After researching, Tom found several ways to sell his home professionally while cutting down on commission costs, and he was able to save a significant portion of his equity by choosing the right option.

If you’re like Tom and wondering how to sell your house without paying a full commission, here are some alternatives to consider.

Solution:
1. Flat-Fee Realtor Services: Keep More of Your Equity
One of the most popular alternatives to paying a full commission is using a flat-fee realtor service. This option allows you to get the same professional expertise that traditional agents offer, but for a fixed price instead of a percentage of your sale price.
• How Flat-Fee Services Work: Flat-fee services offer a full range of agent duties, including pricing your home, listing it on the MLS, handling negotiations, and coordinating the closing process. Instead of paying 3% or more to a listing agent, you pay a set fee—often between $5,000 to $10,000—no matter how much your home sells for.
• Why It’s a Win: For higher-priced homes, this option can save you tens of thousands of dollars. For example, Tom’s $800,000 home sale would have cost him $24,000 in traditional listing agent commission fees. He could save more by not offering 3% commission concessions to a buyer’s agent…With a flat-fee listing agent service, he was able to get all the same services for just $10,000, saving him $14,000.
• Potential Considerations: Before signing up for a flat-fee service, make sure you know exactly what’s included. Some flat-fee agents offer additional services, such as professional photography or virtual tours, at extra costs. Still, even with these add-ons, flat-fee services can save you a substantial amount compared to full commission fees.
2. Discount Brokerages: A Lower Commission Alternative
If you still want some agent support but don’t want full-Service whether flat fee or full commission, discount brokerages are a great option. These agents or companies offer limited services for a lower commission rate, often between .5 to 1%.
• How Discount Brokerages Work: Discount brokerages may provide fewer services than traditional agents, but they still take care of critical aspects of the sale, such as listing your property on the MLS and assisting with negotiations and contracts. The main difference is that you may be responsible for marketing and tasks like open houses, showings, or staging your home. The level of engagement and advice is also generally very limited. Think DIY with some real estate agent tools.
• Why It’s a Good Fit: For sellers who are comfortable with doing most of the legwork themselves, discount brokerages can be an ideal low cost option. You save significantly on commission without taking on the full responsibilities of a For Sale by Owner (FSBO) transaction.
• Potential Considerations: While discount brokerages can save you money, it’s important to clarify exactly which services are included. For example, some may offer basic MLS listings but charge extra for signs, lockboxes, marketing or open house services. Always ensure you know what you’re getting before committing to this option.
3. Negotiating Commission Rates: It Never Hurts to Ask
Many homeowners don’t realize that realtor commission rates are often negotiable. While agents may have a “standard” rate they offer clients, that doesn’t mean you can’t try to negotiate a lower fee.
• How to Negotiate a Lower Commission: Approach your agent and ask whether they’d be willing to reduce their commission, especially if your home is in a high-demand market or if you’re selling a higher-value property. You may also consider offering your agent additional business, like using them to buy your next home, as a way to sweeten the deal.
• Why It Works: For many agents, earning some commission is better than earning none. If they know your property is likely to sell quickly, or if you’re offering them a new business opportunity, they may be more flexible with their rates.
• Potential Considerations: Keep in mind that while some agents will be open to negotiation, others may not budge. Additionally, if you negotiate a lower commission, ensure both parties are clear on the scope of services. You don’t want to end up with reduced service because of a lower fee.

4. For Sale by Owner (FSBO): Maximum Savings, Maximum Responsibility
If you’re confident in your ability to handle the sale process, FSBO can eliminate the need to pay any commission to a listing agent. This means you get to keep the full 3% that would have gone to your agent, but you take on the responsibilities yourself.
• How FSBO Works: As a FSBO seller, you’ll be responsible for pricing your home, marketing it, managing showings, negotiating with buyers, and handling all the paperwork. Many FSBO sellers use online platforms to list their homes and leverage social media or local advertising to attract buyers.
• Why You Might Consider FSBO: For sellers who have experience in real estate or are highly motivated to save, FSBO offers the highest potential savings. On a $500,000 sale, keeping the full 3% commission means saving $15,000.
• Potential Drawbacks: FSBO isn’t for everyone. Without an agent, you may have trouble reaching the right buyers, properly pricing your home, or navigating the legal complexities of a sale. Many FSBO sellers end up hiring an agent later when the process becomes overwhelming, so be sure you’re prepared for the workload before committing.
5. Limited-Service Agents: Only Pay for What You Need
Another option for cutting down on commission costs is to work with a limited-service agent. These agents offer a la carte services, meaning you only pay for what you need.
• How Limited-Service Agents Work: Instead of paying a full-service commission, you can choose to pay for specific services, such as MLS listing, photography, marketing materials, or help with paperwork. This allows you to take on some tasks yourself, like holding open houses or negotiating with buyers, while still having a professional handle the more complex parts of the transaction.
• Why It’s a Good Fit: This option is perfect for sellers who want professional support with specific aspects of the sale but are willing to handle other parts themselves. By only paying for the services you need, you can significantly reduce your commission costs.
• Potential Drawbacks: While this approach can save you money, it may also require more time and effort on your part. Be sure to balance the savings with the level of work you’re comfortable doing.

Final Thoughts:
The days of being locked into paying a full commission to sell your home are over. From flat-fee realtor services to discount brokerages and even FSBO, there are plenty of options available today that can help you sell your house without sacrificing a significant portion of your equity. Each option comes with its own set of advantages and considerations, so take the time to choose the one that best fits your situation and comfort level.
By exploring these alternatives, you can keep more of your hard-earned money while still ensuring your home sale goes smoothly and successfully.

Kurzner Group is a Full-Service Brokerage offering Seller Agency Listing Services at an affordable, flat fee. You get all the typical benefits and advantages of a full commission broker at a transparent, flat fee. You won’t sacrifice services or quality because Kurzner Group doesn’t limit its services to you, they do it more efficiently than other real estate agents. Kurzner Group has refined their quality of service and efficiency over the past 20 years working with some of the nation’s largest corporate homeowners and after selling over 8,000 homes in Metro Atlanta. If you want to learn more about Kurzner Group and our Full-Service, Flat Fee Seller Agency Program, contact us today!