In the US, especially in New York, you can find many top low-commission realtors near you. Among the low cost real estate brokerages or realtors you come across, won’t you go with a realtor who offers maximum quality services at a minimum price? The low commission realtors do exactly that. 

Let’s know more about the real estate commission in New York, how low commission agents work in New York, and a list of top low cost real estate brokerages in the state.

What is the typical real estate commission in New York like?

The typical real estate commission in New York is around 5% to 6% of the home sale price. In fact, the broker commission is the highest closing cost for home sellers in New York. While commissions may be falling in other parts of the country, real estate commissions in New York are largely fixed between 5 to 6 percent.

In New York City, you’d see lower commission rates in Brooklyn neighborhoods and Queens areas that are away from Manhattan. Broker commissions in Manhattan are the highest in the country and among the highest in the world.

The commission rates are high in New York because of the complexity of selling in the state, the dominance of buyer brokers, a general lack of transparency in commission rates, and brokerage prohibitions against reduced commissions.

Should you work with low cost real estate brokerages in New York?

Discounting is not new and even low cost real estate brokerages and agents have been around for a long time. But there’s a good reason why not all are using a low commission realtor near them.

First things first, a 1% real estate broker is not as motivated to sell your home listing. A 1% real estate broker would only be motivated to sell your property if your property is located in a high value area. For example, the average home sale price in New York City is around USD 2 million, and even a 1% commission comes out to be a whopping USD 20,000. Also, an exclusive sales listing in Brooklyn, Westchester, or Manhattan brings tangential benefits like credibility and enhanced branding.

However, you must keep your distance from low cost real estate brokerages that treat their agents as employees on salary and not salespeople on commission. The employee model generally rewards agents as per factors like customer reviews. However, a real estate agent with a fixed salary would not function as one of the best agents.

All the good agents are out earning a full commission at traditional firms. Agents easily hop between firms and a good agent would surely jump ship the first opportunity she gets. An agent on salary won’t be motivated to keep all the leads that come for your property. So if you are lucky and it’s a hot market in your locality, maybe the role of the agent won’t matter much. But if your market is even a little slow or you have competing listings on your market, you’ll be at a disadvantage against listings with brokers motivated to sell the property and reap a commission.

So, based on your locality and home, it’s up to you to decide if at all you want to go with low cost real estate brokerages in New York.

List of top low commission realtors in New York

Below is the list of top low commission realtors in New York:

  1. Houzeo

Houzeo is the number one real estate website in the US and in New York. Houzeo offers the best combination of max exposure, max savings, great customer service, and cutting-edge tech. You can save thousands on commission, the money you wouldn’t be able to save even with low commission realtors near you. Houzeo is a high-tech platform that lets you list your homes for a small flat fee on the MLS. 

By working with a listing agent that doesn’t charge a typical commission you save you almost half of the agent commissions right away. Also, with the cutting edge technology offered by Houzeo, you get access to a seller dashboard after registering where you can receive, compare, and review offers. Houzeo also allows features such as counteroffers, contract updates, lockbox, home showings, yard signs, etc. Houzeo has a 5.0 rating on Google Reviews and is best for most home sellers in New York. With Houzeo, you can be sure to maximize your savings while selling or buying a home. You can even sell your house fast with Houzeo if you want to sell your house fast in New York. To know more about them check Houzeo reviews.

  1. SimpleShowing

SimpleShowing offers very low listing fees for home sellers in some states in the US. SimpleShowing has fewer agents than a typical brokerage has, and they handle five times more customers as compared to an average realtor. Most low commission realtor companies called ‘discount brokerages’ follow a similar theme. And such a model has its own pros and cons for you.

SimpleShowing is the sole full-service brokerage that offers you realtors charging just 1% commission. As the minimum fee is relatively low, it better suits sellers with medium-priced homes

On the other hand, you have limited options in choosing your agent. Also, as agents handle a large volume of customers, it could lead to mistakes, especially in complicated sales. You have much competition looking for your agent’s attention and time. So, SimpleShowing offers great potential savings but it has its underlying risks. 

When companies offer savings in this way, the most common complaint from customers is improper service. This could translate into paperwork mistakes, missed deadlines, or other avoidable issues, which can potentially cost you money.

  1. Redfin

You probably must have gone through Redfin’s home search tool. And you might not know that the company is also a low commission real estate brokerage. Redfin lists your house for 1.5% commission or even for as little as 1% if you buy a home with Redfin as well.

Redfin makes commission affordable by taking a different approach. The company employs its team of agents similar to a traditional brokerage. However, its agents handle three times as many customers as typical realtors. Selling more homes by employing fewer agents lets Redfin make a profit despite earning less money per sale.

Redfin’s 1.5% listing fee saves you 50% of the traditional realtor’s charge. Your listing also gets a premium placement on Redfin’s website and app when you work with Redfin. Its online seller dashboard is nice to stay up-to-date on your home sale.

But with Redfin, you get limited agent selection options as compared to traditional brokers. Also, you can’t expect personalized support with Redfin as agents work with many clients at once. Also, with Redfin’s team-based method, there are chances of mistakes, delays, and poor communication.

  1. Trelora

Trelora is a low cost real estate brokerage that offers two full service packages priced at 1% and 2%. Choosing a traditional agent would be a more preferable option if the commission difference is marginal. Again, Trelora employs a limited number of agents that cater to a large number of customers. This can lead to poor customer service quality. Also, with the multiple agent model, the platform does not provide you a single agent but offers multiple low cost real estate agents to help you at different stages. This could backfire as multiple people are involved. Trelora offers additional features like yard signs, professional photos, marketing, etc.

Final word

Houzeo comes out as the best low commission realtor near you as it gives you the flexibility and exclusive features non-comparable with other low cost real estate brokerages. The 100% online platform has digitized many things to smoothen your house selling process. Houzeo is also the best flat fee MLS and FSBO company in the US. Even if you think that ‘I want to sell my house fast in New York’, Houzeo may help you out.