Buying or selling a home is often one of the biggest financial decisions people make in their lives. And in most cases, they work with a real estate agent or a realtor to help them navigate the complex process. But with the average commission rate for real estate agents in the US hovering around 5-6%, the fees can add up quickly. In this blog, we will look at how much money people spend on realtor fees per year and how a 1.25% commission realtor can help save money.

According to the National Association of Realtors (NAR), in 2020, the median home sale price in the US was $320,000. Based on a 5% commission rate, the typical seller would pay $16,000 in realtor fees. However, this amount can vary depending on the region, property type, and other factors.

It's worth noting that the real estate commission is usually split between the seller's agent and the buyer's agent. So while the seller pays the commission, it's ultimately factored into the price of the home and paid by the buyer.

Now, let's consider how a 1.25% commission realtor can help save money. As the name suggests, a 1.25% commission realtor charges a lower commission rate than the standard 5-6%. This means that a seller can save thousands of dollars in commission fees.

For example, if we go back to the median home sale price of $320,000, a 1.25% commission realtor would charge a commission of $4,000, saving the seller $4,000 compared to the standard 5% commission rate. This can make a significant difference, especially for sellers who are looking to maximize their profits from the sale of their home.

But you may be wondering how 1.25% commission realtors can afford to charge such a low rate. Typically, these realtors operate with a lean business model, which means they keep their overhead costs low by utilizing technology and other efficiencies. They also tend to focus on high-volume sales, which allows them to make up for the lower commission rate with a higher volume of transactions.

It's worth noting that not all discount commission realtors are created equal, and it's essential to do your due diligence when selecting a real estate agent. Some may have hidden fees or provide limited services, so it's important to understand what you're getting for your money.

In conclusion, realtor fees can add up quickly, but working with a discount commission realtor can help save you money when buying or selling a home. By charging a lower commission rate, these realtors can help sellers maximize their profits and buyers save money on their home purchase. However, it's crucial to research and choose a reputable discount commission realtor to ensure you're getting the best value for your money.