H
ome sellers can save thousands of dollars by using low-cost brokers, according to a report from the Consumer Policy Center. The report found that many low-commission and flat fee brokers offer services similar to traditional real estate agents at lower costs. Several low-fee brokers met the report's criteria for positive agent reviews and low commission prices, with Clever appearing to meet all requirements.

    The report assessed two types of brokers: those offering flat rates for services like listing a home on the MLS, and those charging commission rates of 1-2%. Lowering commission rates from 3% to 1.5% alone can save sellers thousands of dollars. The report noted that reputable low-cost brokers are transparent about their fees and provide information about their agents.

    Clever, a broker with over 15,000 partner agents, stood out as meeting all of the CPC's criteria for low-cost brokers. Other notable low-fee brokers include Ideal Agent, Houwzer, Trelora, SimpleShowing, and 1% Lists. However, some of these companies fell short in terms of wide availability.

    The report also highlighted the challenges faced by low-cost brokers, including consumer concerns about their ability to provide all necessary services. However, researchers found that many low-fee brokers are able to offer high-quality service at lower costs. The authors stressed the importance of sellers interviewing any referred agent first.

    Commission rates could decline if low-cost brokers gain market share following NAR's settlement and policy changes, according to CPC Senior Fellow Stephen Brobeck. He predicts that rates will eventually decline to 3% for one agent handling both sides of a transaction and 4% when two agents split the fees. This would be a significant decline from current rates, which often range from 5-6%.