Limited-service real estate agents can save real-estate savvy homeowners on realtor fees. These agents offer different pricing tiers and a la carte services, giving you more control over the process. However, that freedom comes with less support from your real estate professional.
One common pitfall of selling a home on your own is that it takes a lot more work than many initially expect. And while you can often buy more support from a limited-service agent to pick up the slack, those add-ons can add up quickly — ultimately costing you more than a discount real estate broker in the long run.
In addition to unexpected costs, some states dictate what limited-service agents can and can’t offer. These regulations protect sellers from predatory agents who take advantage of unknowing homeowners but limit the options for sellers wanting a low-cost, self-guided approach to selling their homes.
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Who should use a limited-service agent?
Best for:
Limited-service agents work well for sellers who understand their market and have experience with:
- Pricing and showing their home
- Marketing their property on social platforms
- Negotiating deals on major purchases
People who live in a hot real estate market or have a buyer lined up before going to market might also want to look into a limited-service realtor because these situations often require less realtor support.
Not ideal for:
People with less real estate experience should consider another option. Selling with a limited-service agent isn’t a great fit for:
- First-time sellers or those unfamiliar with the process
- People who want to be hands-off when selling
- Homeowners who want less stress from their sale
And if you live in a slower market or want top dollar for your home sale, opting for full service over limited service is a better bet.
Working with a full-service, low-commission realtor can give sellers the best of both worlds. You receive the support needed for a smooth home sale, all while spending as little as half of what most realtors charge.
What is a limited-service agent?
Limited-service real estate agents are licensed realtors who offer essential service packages and a la carte home-selling options. These realtors allow homeowners to sell at a lower price point in exchange for limited support.
Typical limited-service packages include an MLS listing, and the following add-ons may (or may not) be available:
- Contract reviews
- Offer negotiation
- Marketing support
- Lockboxes and yard signs
It’s important to note that services and prices vary from agent to agent. Some agents may offer more support at a lower-than-average commission, like 1% versus the average 2.45%, or they may charge a flat fee based on their service tiers.
State-specific minimum service laws
Some states have regulations that impact the minimum services an agent can provide. For example, agents in Alabama must:
- Exercise reasonable skill and care in providing brokerage services
- Present all offers in a timely manner
- Assist in negotiation efforts
These regulations vary from state to state. Some areas have detailed minimum requirements for agents, while others only require realtors to present offers promptly – or have no regulation at all.
Sellers in Kentucky and Michigan can waive the minimum realtor requirements.
If you have any doubts about the rules in your area, consult a real estate attorney to better understand local realtor responsibilities and how much of the process you can legally handle on your own.
What services do limited-service agents typically exclude?
Limited-service agents usually offer essential services, such as MLS listings and state-required provisions. According to the National Association of REALTORS, limited-service agents are agents who do not provide one or more of the following services:
- Guidance on which offer to accept
- Counteroffer advice and negotiation assistance
- Managing marketing efforts outside of MLS listings
- Showing arrangements for and presenting offers from cooperating brokers
You should always carefully review any listing agreements before selling your home — especially when working with a limited-service agent.
If they promise similar services to a traditional agent but don’t list them in the agreement, they may not stick to their promises after they get your business.
Full-service vs. limited-service agents
Limited-service agents give you more flexibility and the chance to save thousands on realtor fees when selling your home. But you miss out on the expertise of working with an agent who can advocate for you during negotiations and facilitate the marketing process.
Opting to waive this expert guidance may cause you to sell below market value or prevent your home from selling as quickly as it would with a professional. Here are how the services and pricing compare between limited- and full-service agents:
| Limited-service agents | Full-service agents | |
|---|---|---|
| MLS listings | 🟢 | 🟢 |
| CMAs | 🟨 | 🟢 |
| Marketing assistance | 🟨 | 🟢 |
| Timely offers | 🟨 | 🟢 |
| Counteroffer services | 🟨 | 🟢 |
| Negotiation assistance | 🟨 | 🟢 |
| Average offer quality | ⬇️ | ⬆️ |
| Average cost | 1-2% | 2.5% or more |
| *Available services may differ depending on the agent or brokerage | ||
Pros and cons of using a limited-service agent
Pros
- Choose only the services you need
- Lower fees
- Good for experienced sellers or hot markets
Cons
- Lack of professional expertise
- Potential for pricing errors or missed opportunities
- Additional stress and workload for sellers
It’s crucial to weigh these pros and cons before deciding which route to take when selling your home. If you feel that the drawbacks may outweigh the savings or flexibility, you may want to consider another option.
Limited-service agent vs. other real estate options
If you want to take an alternative route when selling your home but aren’t sure if a limited-service agent is the right fit, it’s best to research other real estate companies. Discount brokers, flat-fee MLS services, and iBuyers offer out-of-the-box real estate services without a traditional brokerage.
Some options, like flat-fee MLS services, may give DIY-sellers the best bang for their buck. Others, like discount brokers, offer a process similar to that of a full-service agent at a lower rate. Here’s how they stack up against each other:
| Limited-service agents | Flat-fee MLS services | iBuyers | Discount brokers | |
|---|---|---|---|---|
| MLS listings | 🟢 | 🟢 | 🟢 | 🟢 |
| A la carte services | 🟢 | 🟨 | 🟨 | ❌ |
| CMA | 🟨 | 🟨 | 🟢 | 🟢 |
| Marketing assistance | 🟨 | 🟨 | ❌ | 🟢 |
| Timely offers | 🟨 | ❌ | 🟢 | 🟢 |
| Counteroffer services | 🟨 | 🟨 | ❌ | 🟢 |
| Negotiation assistance | 🟨 | 🟨 | ❌ | 🟢 |
| Average offer quality | ⬇️ | ⬇️ | ⬇️ | ⬆️ |
| Average cost | 1-2% or flat fee** | $99-1,000 | 2.2-6%** | 1-2% or flat fee |
| *Available services may differ depending on company or service package **All fees and commissions vary based on the real estate company | ||||
Should you use a limited-service agent?
Choosing to work with a limited-service agent depends on your unique selling situation. If you have extensive real estate knowledge, want more control over selling your home, or live in a hot market where you can sell your house fast, a limited-service option may work for you.
On the other hand, you might want to consider an alternative to a limited-service realtor if you have limited time to dedicate to the process, basic real estate knowledge, prefer a done-for-you service, or live in a slower market.
For those who want to pay less but are unsure how to handle the process independently, looking into discount brokers or full-service agents with reduced fees may be the best option.
Save thousands without sacrificing service — connect with top-rated agents in your area today!