Real Estate Revolution: Are Low-Fee Brokers the Future of Home Buying?
- Rahaman Hadisur
- 1 hour ago
- 3 min read
Hadisur Rahman, JadeTimes Staff
H. Rahman is a Jadetimes news reporter covering Business
In a world where everything from meal kits to mortgages can be handled online, the U.S. real estate industry has remained one of the last bastions of traditional service. But that may be changing. A new wave of low-fee real estate brokerages is challenging the decades old 5–6% commission model, giving buyers and sellers more control and more savings mthan ever before.
For first-time buyers Jonny Ballesteros and his fiancée Jen, that disruption couldn’t have come at a better time. Searching for a home in the high-pressure San Diego market, the couple found traditional real estate agents unresponsive and overpriced. They ultimately turned to TurboHome, a flat-fee brokerage offering comprehensive services for a fraction of the cost.
“We truly needed that hand-holding because it was our first property,” Ballesteros told USA TODAY. “And TurboHome delivered it all home suggestions, scheduling, chats, even answers to basic questions all at a lower price.”
TurboHome charged just $7,500 for its services, compared to a potential $20,000 traditional buyer’s agent commission on their $679,000 purchase. And the seller paid the fee, leaving the couple with more room in their budget for their mortgage.
The move toward low-fee models gained momentum after a landmark series of lawsuits challenged how real estate commissions are negotiated. According to a June report from the Consumer Policy Center, these legal actions and the media coverage they attracted led many consumers to question whether traditional commissions are justified in the digital age.
“High commissions don’t really make sense anymore,” said Ben Bear, co-founder and CEO of TurboHome. “Technology now allows us to provide a high-touch experience at a lower price point.”
Veteran attorney and industry critic Douglas Miller, who helped spark the initial lawsuits, believes that terms like “discount brokers” are misleading. “These are not discount agents,” he said. “They’re fair fee brokers. Traditional agents want to paint them as inexperienced, but many are actually more active and efficient.”
Miller points to a 2024 analysis that found half of all real estate agents completed one or fewer sales in the previous year, while 70% managed five or fewer. “This is a part-time industry in many respects,” he said.
Yes sometimes. Experts caution that while low-fee services offer great value, they may not be right for every transaction.
“Real estate is still very much a relationship business,” said Lisa Gill, an analyst with Consumer Reports. “In competitive markets, having an agent connected to a local network can be a major asset.”
She likens skipping a traditional agent to building a house without a general contractor: you might save money, but unexpected issues could prove costly. For those who are unfamiliar with the homebuying process, that personalized guidance can be crucial.
Even TurboHome agrees there’s room for traditional agents especially since their own model doesn’t require exclusivity. Buyers can start with TurboHome and switch if another agent finds the perfect home, penalty free.
While much of the attention has focused on buyers, sellers also stand to benefit. The Consumer Policy Center’s 2025 report reviewed platforms like Ideal Agent, Clever, and Trelora, praising Clever in particular for its roster of experienced professionals.
The key takeaway? Low-fee brokers are a viable alternative as long as consumers do their homework. Buyers and sellers should carefully review what services are included and vet individual agents, regardless of the platform.
The data suggests a slow but steady transformation. With online listings, automated tools, and platforms that support buyers every step of the way, many Americans now feel empowered to bypass traditional real estate norms.
For couples like Jonny and Jen, the value was clear: hands-on support, lower fees, and a process that didn’t feel overwhelming. And as companies like TurboHome, ShopProp, and Arrivva expand, traditional agents may need to rethink how they compete not just on price, but on performance.
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