Save More with a 2 Percent Real Estate Commission – Explained

Thinking about paying a 2% real estate commission instead of the usual 5–6%? You’re not alone. A lot of home sellers are looking for ways to keep more of their sale profits. The idea sounds simple: save money, get the job done, and move on. But the truth is, what you save in dollars could cost you in service, or not, depending on who you hire.

In this article, we’ll break down how 2% real estate commissions really work, what you’re getting for that lower rate, and whether it’s the right fit for your situation. We’ll even look at how recent changes like the NAR settlement could shake things up.

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How Do 2 Percent Real Estate Commissions Work?

When people hear “2% commission,” they often think it covers everything. But usually, that 2% only pays the listing agent, the one who helps you sell. In a typical deal, there’s also a buyer’s agent who gets paid too. That means your total commission could still be closer to 4–5% once both sides are paid.

With a 2% listing fee, you’re cutting down the cost compared to the usual 2.5–3% per agent. That can save you thousands. For example, on a $400,000 home, a 2% listing commission saves $4,000 compared to a 3% fee. But those savings depend on whether the seller pays the buyer’s agent commission, which is still the norm in most deals.

In short, 2% commission deals lower the cost of selling, but not always by half. It’s key to ask exactly who’s getting paid, and how much.

Why Some Real Estate Agents Offer 2% Commission Rates

So, why would a real estate agent agree to a lower fee? Sometimes it’s about standing out in a crowded market. Offering a 2% rate can help an agent attract more listings, especially in places where homes are selling fast or prices are high.

Other times, agents may be newer to the game or building a name for themselves. A lower rate can bring in clients and build a strong reputation through volume and referrals. Some brokerages also support discount real estate models, which let agents work more efficiently and take on more clients at once.

It could also just be about the math. If a $700,000 home sells fast, a 2% commission still adds up to a decent payday. That’s why real estate brokers might accept lower fees in hot markets or for high listing price homes.

Still, just because the rate is lower doesn’t mean you’ll always get less. The key is knowing what services are included and whether that 2% agent fits your needs.

What You Get (and Don’t Get) With a 2% Agent

Not all 2% agents are the same. Some offer full service at a discount, they’ll help with pricing, marketing your home, scheduling showings, negotiating offers, and guiding you through closing. In that case, you’re getting the same service you’d expect from a traditional 5–6% agent, just for less money.

But others follow a flat fee or tiered service model. This could mean fewer perks, like no open houses, basic listing photos, or slower response times. Some might only list your home on the MLS and leave the rest to you. You might get a “Bronze” or “Basic” package unless you pay extra for more help. These setups can work if you’re experienced or in a fast-selling area, but they might not be great if you need more hands-on help.

Also watch for dual agency, when one agent represents both you and the buyer. It can speed up the process but may not always be in your best interest. Ask how they handle that and if it affects the support you’ll get.

Bottom line? That 2% might sound great, but you’ve got to look under the hood. Ask for a full breakdown of services so you know exactly what’s included, and what’s not.

NAR Settlement and the Future of Agent Commissions

Big changes are happening in the real estate world, and the NAR settlement is at the center of it. In 2024, the National Association of Realtors agreed to new rules that could reshape how agent commissions work, especially when it comes to who pays what.

In the past, sellers usually paid the buyer’s agent fee, even though they weren’t the ones hiring that agent. But now, that’s shifting. In many cases, buyer’s agents will need to negotiate their own pay directly with their clients. That could make commission rates more flexible, and possibly lower overall.

For home sellers, this could mean more control over costs. You might not have to offer a full 2–3% to the buyer’s agent anymore, depending on how the local market adapts. But the transition isn’t simple. Rules vary by area, and not all agents have adjusted yet.

This new setup puts more pressure on transparency. It’s more important than ever to ask what each side is getting paid, and what you’re getting for your money.

How Much Can Home Sellers Actually Save?

Let’s talk real numbers. If your home sells for $500,000 and you pay a 6% commission, that’s $30,000 in fees, ouch. But with a 2% listing agent and a 2.5% buyer’s agent, your total drops to $22,500. That’s a $7,500 savings just for choosing a lower-cost agent.

If you’re in a higher-priced market, the savings can get even bigger. On a $750,000 home, cutting just 1% off the total commission means you keep an extra $7,500 in your pocket. And if you negotiate the buyer’s agent commission too? Even more savings.

But remember, not all real estate commissions are created equal. Some agents charge a 2% base but tack on hidden fees later. Others might offer 2% for listing, but expect you to offer full commission to the buyer’s agent, so your total commission ends up higher than expected.

Always ask for a clear breakdown before signing anything. And if math isn’t your thing? Use a commission calculator or ask the agent to run the numbers for you. A good agent should make the math simple.

Alternatives to 2 Percent Real Estate Commission Realtors

A 2% agent can save you money, but it’s not the only way to cut costs when selling your home. Some sellers are skipping agents altogether and going with flat-fee services, where you pay a set amount to list your home but handle everything else yourself. That can work if you’re confident and have time, but it’s not for everyone.

Then there’s the iBuyer route. With companies like iBuyer.com, you skip listings, showings, and open houses altogether. Instead, you get a cash offer based on market data, and you pick your closing date. No waiting around, no last-minute clean-ups, and no worrying about whether a deal will fall through.

This option is great for folks who want certainty and speed. Sure, you might not get top dollar, but you also avoid agent fees, repairs, and weeks (or months) of stress. It’s all about what matters most to you: every last dollar, or a smoother, faster way to move on.

Reilly’s Two Cents: Tips From My Experience Selling With a Discount Broker

I’ve helped folks sell homes through discount brokerages before, and I’ve seen both the good and the not-so-good. The truth is, a 2% commission can be a smart move, but only if you know what to look out for. These deals aren’t all created equal.

First, ask what services are actually included. Some agents might throw out that 2% rate just to hook you, but then expect you to pay extra for things like pro photos, open houses, or even a yard sign. Don’t assume, ask. Get it in writing.

Second, don’t forget about the buyer’s agent commission. Many sellers think they’re only paying 2%, then find out they still have to offer another 2.5% or 3% to bring in buyers. If your total ends up at 4.5% or more, you haven’t saved all that much.

And last, always interview more than one agent. Ask about their experience, how many homes they’ve sold recently, and how they market properties. A lower fee is only a good deal if the agent can still get the job done right.

A good agent at a fair price? That’s a win. A cheap agent who can’t close the deal? That’s a headache you don’t need.

Smart Way To Save Money?

Choosing a 2% agent can be a smart way to save money, but only if the service matches your needs. If you’re in a hot market, selling a higher-priced home, or don’t need much hand-holding, a discount might make perfect sense. But if you’re looking for hands-on help, expert pricing advice, or someone to handle every detail, not every 2% deal will deliver.

The key is to compare. Look at what’s included, ask about both sides of the commission, and don’t be afraid to walk away if something doesn’t feel right.

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Frequently Asked Questions

Reilly Dzurick

Reilly Dzurick is a seasoned real estate agent at Get Land Florida, bringing over six years of industry experience to the vibrant Vero Beach market. She is known for her deep understanding of local real estate trends and her dedication to helping clients find their dream properties. Reilly’s journey in real estate is complemented by her academic background in Public Relations, Advertising, and Applied Communication from the University of North Florida. This unique combination of skills has enabled her to seamlessly blend traditional real estate practices with cutting-edge marketing strategies, ensuring her clients’ properties gain maximum visibility and sell quickly.

Reilly’s career began with a strong foundation in social media marketing and brand communications. These skills have proven invaluable in her real estate practice, allowing her to offer innovative marketing solutions that set her apart in the industry. Her exceptional ability to understand and meet clients’ needs has earned her a reputation for providing a smooth and satisfying transaction process. Reilly’s commitment to client satisfaction and her innovative approach have garnered her a loyal client base and numerous referrals, underscoring her success and dedication in the field.

Beyond her professional achievements, Reilly is passionate about the Vero Beach community. She enjoys helping newcomers discover the charm of this beautiful area and find their perfect home.

Outside of work, she loves exploring Florida’s stunning landscapes and spending quality time with her family. Reilly Dzurick’s combination of expertise, marketing savvy, and personal touch makes her a standout real estate agent in Vero Beach, Florida.