This is provided by a limited service real estate agent (and not provided)

Commission savings can be paid

The main benefit of choosing a limited-service real estate agent is the potential for savings. Traditionally, home sellers pay a total of about 6% to real estate commissions, usually 3% to listed agents and 3% to buyers.

However, after the National Association of Real Estate Brokers (NAR) settlement association in 2024, the seller will no longer be required to provide compensation to the buyer’s agent. This means you can significantly reduce commission costs by avoiding buyer agency fees and full-service listed agent commissions.

While this may sound like a victory, there is a big trade-off.

Limited service agents usually offer less service. As mentioned earlier, this may hardly help in pricing strategies, installments, marketing, buyer negotiations or managing paperwork. Without strong representation, your home may be on the market longer or sell less than possible.

So even if you save 3% commission upfront, you may lose the same amount, or more, through lower sales prices, lower buyer interest or additional effort. Saving may not always justify risk, especially if you navigate in a competitive market or lack experience in selling your own home.

Rogers asks you to consider what your time is worth. Although he knows that some sellers may not need full-service agents, he believes that for most sellers, hiring professionals to manage all aspects of sales is a better option.

For many sellers, browsing the complexity of home sales seems overwhelming, which is why 89% choose to work with real estate agents. Professionals can handle the details, negotiate effectively, and help you avoid common pitfalls, making the process smoother and potentially more profitable.

While the savings from a limited-service agent can be tempting, the expertise and support of a full-service agent often makes the investment worth a successful sale.

Should you hire a limited-service real estate agent?

Limited-service real estate agents can provide attractive savings by reducing or canceling traditional commission fees. For confident, experienced sellers, this can be a cost-effective way to manage home sales. However, trade-offs often come in the form of limited support, less marketing exposure, and attracting and negotiating negotiations with buyers.

If you want to weigh your options and still be confident in your sales, consider using Homelight’s free agent game tool to work with a proven local agent.

Title image source: (fizkes/shutterstock)