Do low commission realtors do less for you or offer less services? I would understand if something got cut out with a lower commission, I'm just wondering what would get cut. Or if our house would sit on the market longer or we'd get a lower price when selling.
Asked by David | Germantown, MD| 11-28-2023| 963 views|Working With an Agent|Updated 2 years ago
Some do less. Some don't. The commission rate alone doesn't tell you which situation you're in.
The agents and brokerages that charge less and still deliver full service typically make it work through higher volume, lower overhead, or technology that reduces their cost per transaction. They can afford to charge less because their business model is built for it.
The ones that charge less and deliver less usually cut from the marketing budget first. Fewer or lower quality photos, no video, no staging consultation, limited advertising, and less hands-on service during negotiations and the closing process. These are the corners that directly affect how your home is presented and how your deal is managed.
The way to tell the difference is to ask specific questions. What does your marketing package include at this rate? How many professional photos? Video walkthrough? Social media promotion? Staging guidance? What's your average days on market? What's your list-to-sale price ratio? How do you handle inspection negotiations?
If a low-commission agent can answer all of those convincingly and back it up with recent results, the lower rate might be a great deal. If they dodge the questions or can't show you comparable outcomes to higher-priced agents, the savings aren't really savings.
I would ask about marketing. Marketing takes time and money. I would check out the quality of your pictures. Can they still afford to pay a professional with the commission you both agreed to? Also, in Texas we have buyers representation agreements for a certain amount of commission. If that amount is not agreed on in the listing agreement then the buyers would have to pay the difference. Can the buyers afford that? How many buyers do you lose? Also is this agent a full time agent? Do they have another job? How available are they going to be for your questions and for buyers? In Texas commission is negotiable. If the agent agrees to less you should get the service you deserve. Truth is you get what you pay for.
Worth flagging before anything else: this question is from late 2023, and the rules changed on August 17, 2024. Every answer above it was written under the old system. If you are reading this now, the honest starting point is that the question itself works differently than it used to.
Here is what changed. Compensation offers to buyer agents can no longer be published in the MLS. A listing agent cannot advertise what a buyer's agent will be paid. And any agent working with a buyer has to have a signed written agreement, stating their compensation specifically, before showing that buyer a home. So the old model, where a seller set one number and it quietly split two ways, is gone. There are now two separate negotiations, and you control both.
That reframes your actual question. It is no longer "what gets cut at a lower commission." It is "what am I buying, from whom, and what am I offering separately, if anything, toward the buyer's side."
To answer directly: yes, lower usually means less, and the thread is right about that. But less what matters enormously, so here is how to find out instead of guessing.
Ask any agent you interview, at any price, for their listing services in writing as a list. Then compare the lists, not the percentages. The items that actually move your outcome:
Professional photography, and whether it includes floor plans and drone if your property calls for it. Ask to see three recent listings they shot.
Who runs your showings and how fast they respond. Slow showing response is the quietest way a discount costs you money, and you will never see it happen.
Whether the agent personally negotiates your offers and inspection responses, or hands you to a transaction coordinator. This is where a listing is won or lost, and it is the most common thing missing at the bottom of the market.
What happens after you go under contract. Roughly half the work in a sale happens after you accept an offer, and this is where thin service shows up as a deal falling apart in week four.
Flat fee and limited service models are legitimate and they work well for some sellers, particularly in fast markets with straightforward properties and a seller who is comfortable doing more of the work. They serve you badly on a house that needs a story told, or in a slow market, or when something goes wrong.
On your two specific worries. Will it sit longer, or sell for less? The research on this is contested and I am not going to hand you a percentage I cannot stand behind. What I can say from watching many transactions is that the difference rarely shows up in the marketing. It shows up in negotiation, and in whether someone is genuinely working when a problem lands on day 22.
And here is a question people forget to ask now: if you decide not to offer anything toward the buyer's agent, ask each agent you interview how they will handle buyers whose agents want compensation. There is a real answer to that, and how they respond will tell you a great deal about how they will handle everything else.
I am Zoltan Peresztegi, a real estate professional working Los Angeles and the South Bay in California, so Germantown is outside my market and Maryland has its own norms. Happy to help you find a strong Montgomery County agent to interview alongside whoever you are already considering.
Zoltan
Yes! As the old saying goes, you generally get what you pay for. Discount agents can only operate at volume to be sustainable, which means that they will not have the resources to be super active in responses and customer service. Also, if an agent is rather quick to discount their commission, I would highly question how well they are going to negotiate for you when required. Good luck with the search!
Keith Jean-Pierre
Managing Principal
The Dapper Agents
Real Estate Operations in ALL 50 States
Not necessarily. Commission and quality of service are not always tied together. I've seen full-commission agents provide very little value, and I've seen discount agents do an excellent job.
The better question is: what services are actually included? Some lower-commission agents offer the same core services—professional photography, MLS exposure, marketing, negotiations, transaction management, and communication—but operate on a higher-volume business model. Others may charge less because certain services are limited or offered as add-ons.
When interviewing agents, ask specific questions:
• Who pays for professional photography and marketing?
• How often will you communicate with me?
• Will you personally handle negotiations?
• How many listings do you manage at one time?
• What is your strategy if the home doesn't receive offers quickly?
Ultimately, what matters most is the agent's track record, marketing plan, responsiveness, and negotiation skills—not simply the commission rate. A lower commission does not automatically mean your home will sell for less or sit on the market longer. The key is understanding exactly what you're getting and choosing the agent who offers the best overall value, not just the lowest fee.
David, sometimes lower-commission agents provide fewer services, but not always. Ask exactly what is included, such as professional photography, marketing, open houses, negotiation, showing support, and transaction management. Compare the agent’s experience and results, not just the commission, since weaker marketing or service could affect your sale price and time on the market.
Commission is negotiable and every agent offers different services and levels of experience. If you're looking for the cheapest option you're often leaving money on the table if that person doesn't have a ton of experience in negotiations. If they are willing to take a cut in pay how strong will they be in negotiating for you to get top dollar?
It is all about value. There is so much that is done behind the scenes. Do you want a desperate agent to sell your home or an experienced one? Do you want marketing to generate more potential buyers or do you want just the MLS and a sign? Drone footage, video tour or just a few cell phone pics?
Short answer is YES! You need a great agent who will get you more money so that your net is even better than if you used a discount brokerage Call me, I have an extensive network of top producing professionals that can be of help to you 361-557-4325
My response may be controversial. Remember, you are not selling your home, but rather you are marketing a property. Remember, the seller rarely pays the commissions. The buyers offer a price that includes enough money for the seller to write a check to the respective title, brokers, closing costs, etc.