Nashville's Top Low Commission Real Estate Agents [Don't Pay 6%]

Key Takeaways

• Felix Homes was started in 2018 with the goal of being the most financially responsible way to buy or sell a home.
• Felix Homes is Nashville's top low-commission brokerage having sold over 185 homes.
• As of August 2024, Felix Homes has 115 five-star reviews on Google and has saved clients over $1,500,000 in commission fees.
• Felix Homes may charge a lower commission but the service offered is second to none.

The Status Quo – 6% Commission Model

Anyone who has bought or sold a home is likely familiar with the good ole 6% commission. This is the fee that most 'traditional' Realtors will charge to list a home. This 6% is commonly split between the listing agent (3%) who represents the seller and the buyer's agent (3%) who represents the buyer.

Let's be honest, 6% of the sales price is A LOT – $42,000 for a $700,000 home! However, many Realtors claim that their fee is justified due to the high level of service they provide. And, to their credit, many Realtors do provide a great service.

In fact, the service real estate agents provide goes beyond helping you buy or sell a house – they act as counselors, trusted advisors, and connectors. They are the phone call you'll make at 11:00PM the day before closing and most likely, they'll pick up their phone at all hours of the day and night.

How Can You Save Money On Real Estate Commissions

Believe it or not, a few options are available if you're interested in saving money on Realtor commissions.

Some people elect to sell their home themselves, also known as for sale by owner (FSBO). But, for sale by owner transactions only account for 7% of home sales throughout the country. And, for good reason, most homeowners are not experts at selling real estate nor do they do so regularly.

Buying or selling a home is such a large transaction that most are unwilling to risk making a mistake that could cost tens of thousands.

More commonly, homeowners choose to work with a real estate agent to oversee the entire transaction. After all, with most things in life, it pays to hire a professional.

As I mentioned, working with a real estate agent can be expensive, as many Realtors charge a 6% commission. In Nashville, the median home price is $572,000, and the average real estate commission is 5.8%. This means the average home seller pays over $33,000 in commission fees. We agree it pays to work with a professional, but is it necessary to pay that much?

In my humble opinion, you shouldn’t pay 6% to sell your home. Instead, I would recommend working with a full-service, low-commission real estate brokerage.

What Is A Low Commission Real Estate Agent

A low-commission real estate agent is an agent who charges a reduced fee to represent the seller when listing their home for sale. And yes, this is completely legal! By law, commissions must be negotiable – although many agents won't advertise that for obvious reasons. Before committing to a low-commission Realtor, it's important to learn about the two different types:

Full-Service, Low-Commission Brokerage

At Felix Homes, we fall under the category of a "full-service low-commission" brokerage. We like to say we are the most financially responsible way to buy or sell a home – but, we're not the cheapest option out there. This is a key distinction. I always tell our clients, that if they're just interested in saving money on commissions, they're in the wrong place.

The success behind Felix Homes is that we offer a 'white glove' service you'd expect when working with a traditional agent (i.e. we handle absolutely everything from start to finish). The only difference between Felix Homes and a traditional brokerage comes down to the commission we charge and the savings you'll receive on closing day. The commission we charge when listing a home is 1.5% compared to the 3% commission most traditional Realtors charge.

But, don't take our word for it – just Google "Felix Homes Reviews" to see what our past clients have said. Or, if you really want to put us to the test, call our office number listed at the top of this website and we guarantee we will pick up the phone!

Jokes aside, as your Realtor, we will be your trusted advisor throughout the entire process. There are also no hidden fees with our model, everything from the professional listing photos to marketing materials are included in the 1.5% price.

Flat-Fee MLS Company

A flat fee MLS company is another type of low-commission model. As the name suggests, for a flat fee (typically $300 – $1,000 that is paid in advance) these companies will list your home on the MLS. However, it's important to keep in mind that this is all you'll receive.

This model is similar to for sale by owner (FSBO) in the sense that you are on your own. Most flat-fee companies do not offer any service beyond listing the home on the market. Key aspects of the process such as pricing the home, coordinating professional listing photos, creating the marketing material, coordinating showings, etc. are left up to you.

In exchange, these flat-fee MLS providers offer a chance to save more money if your home sells. Commonly, they will charge a fixed amount ($300 – $1,000) upfront to list your home in addition to a small percentage (0.5% – 1%) at closing if your home sells. Keep in mind that with the flat fee MLS option, you are still expected to offer a buyer's agent a competitive commission of between 2.5% - 3%.

Is A Low-Commission Agent The Same As A Discount Realtor

Yes, these terms are frequently used interchangeably. Technically, any licensed real estate agent that charges less than 6% could be considered a "low-commission agent" or "discount agent". That said, most commonly, these reduced commission models are broken down into two categories:

• Full-Service, Low-Commission Brokerages
• Flat-Fee MLS Companies

Choosing The Option That's Right For You

Choosing between a traditional agent, a full-service-low-commission agent, and a flat-fee MLS company may sound like an overwhelming decision. Ultimately, your decision should be based on who you will be working with on a day-to-day basis.

For example, I've worked with several traditional agents who should not be in the real estate business. I'm surprised to this day when I see an inexperienced, part-time agent listing a home – and to think that the homeowner is paying 3% for their service (or lack thereof) is even more shocking!

I've also worked with some traditional agents who are great at their jobs. They work around the clock and have their clients' best interests at heart.

On the other hand, I've met some low-commission Realtors who are in over their heads and offer a terrible service. This is where the saying "you get what you pay for" comes from and I'll be the first to admit that with some companies, it's true.

When it comes down to making a decision, my biggest recommendation is to interview a mix of agents – traditional AND low-commission to see which option works best for you.

How Much Do Low-Commission Real Estate Agents Charge As A Listing Fee?

Discount brokers charge different rates, but they are all less than the typical 3% listing commission rate a traditional agent charges. For example, Redfin charges 1.5%, whereas Homie and Trelora charge a flat dollar fee. At Felix Homes, we keep it simple with a low commission rate of just 1.5% for our services.

How Can Low Commission Real Estate Agents Afford To Charge Sellers Less?

When I meet with prospective clients for the first time, I get the same question again and again, "How are you able to offer five-star service AND lower commission fees"? When you hear a pitch from a company that promises to charge half the cost and provide the same service, it may sound too good to be true.

While I can't speak for other low-commission companies, here's how we are able to make the model work at Felix Homes:

1. We're an independently owned brokerage – not a franchise which allows us to keep all of the commissions we earn.

2. By offering a lower commission, more people want to work with us which means we close more deals. By closing more deals, we can pass more savings along to our customers!

After I explain it, it starts to make sense. There truly are no smoke and mirrors here.

You see, real estate agents are required to hang their license at a real estate brokerage. This brokerage typically takes between 30% - 50% of the agent's gross commissions. After a deal closes, the 3% commission (or $16,000 for example) looks more like $8,000 – $10,000. After paying their brokerage, agents are still responsible for other costs such as software, insurance, and fees associated with keeping their license active.

In contrast, I started Felix Homes as an independent brokerage, and I am our broker. So, every commission I earn goes straight into my pocket as opposed to having to split it. Plus, by offering a great value to our clients, we benefit from word-of-mouth referrals which have become an integral part of our business.

What Are The Pros Of A Low-Commission Brokerage?

Charging a lower commission not only allows me to set myself apart from the competition, it also makes me a better real estate broker. If there's one thing I've learned across the 185 homes I've sold, it's that no two real estate transactions are alike.

Experience is gained through repeating an exercise time after time and I don't know of another agent who can say they've sold 185 homes in their career.

Plus, the market is constantly changing. If you decide to hire an inexperienced, part-time agent who may sell one or two homes per year, what's the likelihood that they're familiar with the current state of the local market?

What Are The Cons Of A Low-Commission Brokerage?

The biggest downside of the low-commission model is getting over the stigma that some sellers may initially have. Like I said before, the saying "you get what you pay for" is generally pretty accurate with most things in life.

When I first started Felix Homes back in 2018, I had a homeowner ask me, "how do I know you are really going to provide a great service?" When we first started out, we didn't have any reviews so he essentially had to take my word for it. Now, that question is a lot easier to answer. All I have to say is, "Google Felix Homes Reviews" and see what our past clients have said.

Are Low Commission Agents Licensed?

Absolutely! Just because I am a discount real estate agent doesn't mean I can skip the education and licensing process. I went through the same state licensing requirements as any other agent. When it comes to getting a real estate license in Tennessee, there are essentially two types:

• Associate Broker License
• Broker License

An associate broker is commonly referred to as an agent. They are required to take 120 hours of coursework, pass a state and national exam, and complete continuing education. Once they pass their exam, Associate Brokers are required to hang their license at a real estate brokerage, and all of their activities must be supervised by their Broker.

Real estate agents who have practiced for at least 3 years are eligible to sit for the broker's exam. And, assuming the agent passes, they can officially become a broker and open up their own brokerage office.

I am a licensed real estate broker, the highest designation. I started a low-commission brokerage by choice, to help save folks money. But, the education and licensing requirements are the same no matter what commission rate you decide to charge.

Do Low Commission Realtors Provide Less Service To Sellers?

This is a complicated answer, as every low-commission agency has its own set of practices and levels of service. Some low-commission companies, such as Homie – a Utah-based company – focus on a digital-agent experience. They will not meet with you in person, nor will they visit your home or host open houses. Their listing agent services are done electronically.

On the other hand, other low-commission Realtors, such as Felix Homes, provide you with a full list of agent services. This may include; listing your home, running multiple open houses, leveraging top-notch marketing, and providing prompt customer service.

Meet Felix Homes – The Full-Service, Low-Commission Brokerage

Our company, Felix Homes, started in 2018. Our objective was to create the best, full-service real estate experience for our clients and simultaneously provide the most financially responsible way to sell a home. We're a local real estate company serving Nashville and greater Middle Tennessee.

We strive to get our sellers the highest price while charging them a lower commission. That said, just because our listing commission fees are lower than typical agents doesn't mean we offer a lower level of service. We are still a full-service real estate firm. Our discount real estate business is not the cheapest way to go, folks can certainly list their home as a for sale by owner transaction – but if you're looking for a professional, we'd be happy to help.

The Possibilities We Provide Each Home Seller

We're on a mission to help as many folks as possible live a more financially responsible life. The debt crisis is weighing heavily on many Americans, and we can all benefit from having a bit more money in our bank accounts each month.

On average, due to our reduced commission, Felix's clients save $12,375 when they buy or sell their homes. Imagine what you could do with an extra $12,375.

Some of our sellers; paid off a large chunk of their student loans, took a family vacation, or got rid of a credit card debt that was costing them a few hundred dollars per month! If you're looking to sell your current home and buy a new home, think about how much money you can save over the lifetime of the loan if you put down an additional $12,375.

The Unspoken Reality

When technology is done right, it makes life easier. The same is true for real estate. In our tech-savvy world, most buyers find their own homes. The days of driving up and down streets for hours to see which homes are available for sale are long gone.

Zillow, Realtor.com, and Felix Homes' search tool can help you find your perfect home from the comfort of your living room couch. The job of a real estate agent, in today's modern world, is so much more efficient than it was many years ago. All of the technology tools from customer relationship management software to electronic signature platforms make the job of an agent more efficient.

Not only has the job of an agent become more efficient thanks to technology, home prices have also increased significantly! A higher commission rate made sense when the median home price was $100,000. But those days are also long gone, especially in Middle Tennessee. The median home price in Nashville is $572,000. A 6% commission on $572,000 is a lot of money!

The Felix Homes Approach

In addition to saving you money, we believe in offering sellers an increased level of transparency. We're proud of our proven system and would love to give you a glimpse into our process. Here's how we get our sellers the highest price while charging them a lower commission:

Step 1 - The In-Person Home Valuation

The in-person home valuation is the first step in the process. We offer it as a complimentary service whether or not you decide to list with us. During the approximately 1-hour meeting, we'll start with a home tour where you have the opportunity to highlight any upgrades you've made. During the tour, I'll also make recommendations on how you can get your home ready for the market.

After the tour, I'll take out my laptop where we will review comparable homes that have recently sold. I'll also walk you through all of the costs entailed when selling. By the end of the meeting, you will know:

• What your home is worth in today's market
• How long it will take to sell
• How much you will net from the sale after all closing costs

Step 2 - Professional photos

Our professional photographer will take approximately 40-50 high-definition photos of your home's interior and exterior. In addition, we'll include aerial photos taken with a drone at no additional cost. We also provide props for stagings, such as artwork, flowers, and accent pieces to really make these photos pop! Once we receive the photos, we will send them to a company that will professionally edit every photo. In under 48 hours, these magazine-quality photos will be ready to be shared with the world!

Step 3 - Your home is now on the market

Roughly 48 hours after the photo shoot, the actual home-selling process can begin by getting it listed on the MLS. Once the listing has been added to the MLS, it will syndicate with over 100+ real estate websites, allowing buyers to easily find your home.

We'll take to social media and run various Facebook and Instagram ads. We're no stranger to hosting an open house either, providing you with a professional yard sign, or listing your home in our weekly email newsletter. Each home gets a custom marketing approach because each home is unique. We do not believe in a one-size-fits-all approach. After all, our job is to make sure you get the best offer. The only way to do that is to make sure the right buyer can find the home through a custom marketing approach.

Step 4 - The offers will begin flowing in

Not long after your house is listed on the MLS, we will start to receive showing requests. You have absolute control over accepting the requests that come in to ensure the showings don't disrupt your day.

After a few showings, hopefully, we will receive an offer! At Felix, we're not just your listing agent with the sole goal of selling a home, we're also educators. Each buyer will have a different offer with varying contingencies. Together, we'll review each offer and help you understand the pros and cons. There are many variables to take into consideration. For instance, will there be a financing contingency, appraisal contingency, or inspection contingency? As a seller, deciding which offer to take is difficult to navigate alone, but with our experience, we'll help you make the best decision.

Step 5 - Accepting an offer

Once you accept an offer, the closing process begins. During this time, the buyer will likely conduct a home inspection and submit a list of repairs they would like you to make. Our job is to negotiate which repairs, if any, will be made. Or, in lieu of repairs, some sellers decide to offer a credit. After the inspection period, the buyer will also hire an appraiser. The closing process, which typically is about 30 days can be stressful as you wonder if the sale will go through. With Felix, you'll have nothing to worry about as I'll be by your side the entire time.

Step 6 - Closing day

Congratulations – You've made it to closing day! We'll review your closing statement together and I'll answer any questions you may have. It's at this point when our clients really appreciate the difference between Felix Homes and a traditional agent. They see how much money they saved in commission fees and look at the final amount that is about the be deposited in their bank account.

Once all parties have signed, you've officially sold your house! The new owner will move in and create many lasting memories and you'll get to celebrate!

That's it, that's our process. It's straightforward, comprehensive, and complete.

Why Do 6% Agents Love To Hate On Discount Real Estate Agents?

Why would a traditional Realtor throw shade at a model that saves sellers thousands in commission fees? Perhaps it's because they feel threatened by the way our industry is changing. Discount real estate brokers are disrupting the real estate industry by reducing agent commission fees. Most folks are scared of change, but at Felix, we embrace it!

We realized the 6% fee was too much, and we're not going to tolerate it anymore. After all, you work day after day to pay your mortgage in an attempt to build home equity as an investment for your future. When it comes time to sell, why should such a large portion of this hard-earned equity go to your Realtor?

Our Final Thoughts

In conclusion, choosing a low-commission brokerage like Felix Homes can be a financially savvy decision without sacrificing quality service. By providing comprehensive support throughout the buying or selling process, we demonstrate that you can achieve exceptional results while saving significantly on commission fees.

Whether you opt for a full-service low-commission brokerage or explore other alternatives, it's essential to prioritize the level of service and expertise you receive. At Felix Homes, we’re committed to helping you maximize your investment while keeping your hard-earned money in your pocket. Embrace the change in the real estate landscape, and experience firsthand the benefits of working with a brokerage that puts your financial well-being first. Discount brokers are here to stay.

If you're interested in taking the first step and receiving a complimentary home valuation, please contact us today at contact@felixhomes.com or 615-354-5731.