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The average real estate commission in 2021 was 5.49 percent. On a $450,000 home, that amounts to $24,705—almost as much as the average price of a used car.

That’s no insignificant sum of money, but commission rates are actually on their way down. And they have been since (at least) 2018.

According to Real Trends, a Colorado-based research firm, the average commission slid from 5.03% in 2018 to 4.96% in 2019 and to 4.94% in 2020.

As a homebuyer, this should matter to you. Even small commission reductions can result in thousands of dollars in savings. But those discounts shouldn’t come at the cost of great service.

So if you’re looking to save on real estate commissions without discounting your service experience, keep reading.

What’s driving commissions down

You can attribute part of the commission decline to a hot housing market. When homes sell quickly, home sellers have more power to negotiate with their agents.

But there’s another side to the coin: growing resentment among buyers about high commissions.

In a survey of more than 1000 U.S. consumers, the top grievance with the home buying process was that commissions were too high.

And discount real estate brokers like Redfin, Clever, and others are looking to capitalize on that resentment.

These companies tout 1% percent commission rates, target large volumes of consumers, and pare down their services.

Discount real estate brokers and the need for a middle path

The problem with discount brokers is that they often don’t show properties, attend home inspections, or answer anything other than the most basic questions.

In many cases, as a home buyer, you won’t meet your agent until your sale closes.

These companies rely on the flawed assumption that real estate agents are overvalued.

And as a mortgage broker that’s worked with hundreds of agents, I can tell you that this is a dangerous assumption. Good agents are worth their price, especially in slower markets.

At the same time, I also empathize with the buyer that’s seeking a commission discount and a good service experience. And that’s why I’m advocating for (and providing) a middle path.

Fortunately, many of the best agents I work with share my empathy. And they’ve adopted a new approach to their business wherein they offer tiered commission rebates to buyers.

So I’m teaming up with those agents to help homebuyers like you access commission rebates of up to 2.5% without discounting the quality of your service experience.

How commission rebates work at The Mortgage Hub

To ensure you receive high-quality service from a great agent, we (meaning you, your agent, and your mortgage broker) have to be efficient.

And the best way to begin an efficient home buying collaboration is by prequalifying with a mortgage broker and meeting with a reputable real estate agent.

Regardless of which rebate tier you choose, prequalification and an introduction to your agent is always the first step in our program.

By prequalifying with The Mortgage Hub, you’ll know precisely how much home you can afford. And by working with an agent within our network, we can ensure you’re supported from start to finish.

Your rebate amount will then depend on 1) how many properties you need to visit before you purchase one 2) whether you want an agent to accompany you to your property visits and 3) whether you’re purchasing a new or pre-owned home.

In the chart below, you can see our qualification criteria and the corresponding rebate amounts:

Program Eligibility Criteria Rebate Amount
Take Your Time Prequalify with TMH and work with one of our prefered agents. 1.0%
Move Quick Prequalify with TMH and close on a property within the first 3 that you visit with one of our prefered agents. 1.5%
Go Direct Prequalify with TMH, visit the property yourself, and work with one of our prefered agents on your offer.
Buy New Prequalify with TMH and work with one of our prefered agents to close on a new home.

*Rebate amount is calculated based on a percentage of your home purchase price, i.e. if your rebate is 1.0% and your home purchase price is $500,000, your rebate amount is $5000.

As you can see, we’re so confident in this approach that you’ll receive at least 1% in commission rebates no matter what, so long as you prequalify with us and work with one of our preferred agents.


Interested? Get Pre-Approved for your commission rebate today.