In today’s real estate market, finding cost-effective solutions for buying and selling homes is top of mind for many consumers. Clever Real Estate, a company that connects home sellers and buyers with local real estate agents, claims to offer significant savings through their reduced commission model—advertising rates as low as 1.5% for listing fees. With potential savings that could add up to thousands, many are left wondering: is Clever Real Estate’s 1.5% commission rate really as good as it sounds? In this 2024 update,  into  Clever’s business model, how it compares to traditional real estate commission rates, and whether the company delivers on its promises for home buyers and sellers.

What is Clever Real Estate?

Clever Real Estate is a nationwide service that matches you with leading real estate agents from firms like Keller Williams and Century 21. These agents typically provide full-service support for your home sale, charging only a 1.5% listing fee. While Clever Real Estate offers significant savings compared to traditional agents, you might consider Flat Fee MLS companies for even greater savings on commissions. With these services, your home can be listed on the MLS without incurring any costs for listing agent commissions.

Understanding the 1.5% Commission Structure

The 1.5% commission structure in real estate refers to a lower commission rate paid to agents or brokers on the sale of a property. Typically, real estate agents charge around 5-6% of the home’s sale price, split between the buyer’s and seller’s agents. With a 1.5% commission structure, either the buyer’s or seller’s agent (or both) would accept a 1.5% commission, which could lower the total commission cost to 3% or less if both sides agree to this rate.

• Cost Savings for Sellers: Sellers benefit from a reduced commission, meaning they retain more from the sale proceeds. For example, on a $500,000 property, a 1.5% commission totals $7,500, compared to a typical 3% commission of $15,000.
• Motivations for Agents: Agents or brokers might offer a 1.5% commission to attract more business or to provide a competitive rate in a tight market. Some agents use this as part of a value-based pricing strategy, especially when working with investors or high-volume clients.
• Implications for Buyers: For buyers, a lower commission might mean a smaller pool of agents willing to work for the reduced rate, though this depends on the market dynamics. However, some agents specialize in lower commission rates as a competitive advantage.

How Clever Real Estate Works

5 steps sellers need to follow to sell with Clever Real Estate

• Get Started: Begin by visiting Clever Real Estate’s platform, which connects home buyers and sellers with top local real estate agents. You’ll start by entering basic details about your property, location, and preferences.
• Enter Your Details: Fill out a form with relevant information, such as property address, home type, and selling/buying timeline. These details help Clever Real Estate match you with agents who have the right expertise in your area.
• Consult a Representative: Once you submit your details, a Clever representative will reach out to discuss your goals and answer any questions. This step ensures that the platform understands your unique needs before recommending agents.
• Evaluate Agents: Based on your criteria, Clever will present a shortlist of agents in your area. You can review each agent’s background, experience, and client reviews to assess their suitability for your real estate transaction.
• Select Your Agent: After evaluating your options, choose the agent that best fits your needs. Clever’s network agents typically offer discounted commission rates, helping you save on transaction costs while still receiving full service.

Pros and Cons of Clever Real Estate

Clever Real Estate offers a streamlined way to find top real estate agents at discounted rates, providing access to experienced professionals while helping buyers and sellers save on commission fees.

Pros :include significant savings, access to vetted agents, and personalized support to ensure the right agent match. Additionally, Clever’s agents are full-service, meaning clients don’t sacrifice quality for cost. However,

Cons: may include limited agent selection in less populated areas and a slightly less personal experience since the initial match is managed by Clever representatives. Overall, Clever is an attractive option for those seeking a cost-effective, efficient approach to real estate.

Positive and Negative Reviews of Clever Real Estate

Positive Reviews

• High-Quality Agents: Many customers praise the expertise and professionalism of Clever’s agents. Reviewers frequently mention that their agents were knowledgeable, communicative, and proactive, leading to successful sales often above the asking price. For example, one customer noted, “The realtor that contacted me was absolutely fantastic. She made this whole experience easy and enjoyable.
• Cost Savings: Clever’s model allows sellers to pay a significantly lower commission fee of 1.5%, compared to the industry average of around 3%. This has led to substantial savings for many users, with one reviewer claiming they saved almost $20,000 on commission fees.
• Excellent Customer Service: Customers have highlighted the responsiveness and helpfulness of Clever’s customer service team. Many appreciated that the Concierge Team checked in throughout the process to ensure satisfaction with their agents 13.
• Efficient Process: Reviewers often mention a smooth and quick selling process, with some homes selling within days of listing. One user expressed surprise at how quickly they were matched with a top agent in a competitive market.

Negative Reviews

• Agent-Specific Issues: Some negative reviews focus on dissatisfaction with individual agents, citing poor service or lack of expertise. Customers have expressed frustration when their expectations were not met regarding agent performance or marketing strategies.
• Confusion Over Fees: A few reviewers reported confusion about Clever’s fee structure, particularly regarding the buyer’s agent commission and rebates. Some felt that the promised savings were not as significant as anticipated.
• Limited Services: Critics have pointed out that Clever does not offer certain services that traditional real estate agents might provide, such as home staging. This limitation can lead to additional costs for sellers who want to enhance their home’s appeal.
• Self-Assessment Requirement: The process requires sellers to thoroughly evaluate agents themselves, which some found cumbersome and time-consuming, potentially delaying their selling process

Competitors

Savings: Clever vs. Houzeo

When it comes to real estate savings, Clever and Houzeo offer two distinct approaches:

Clever provides a network of top-rated real estate agents, allowing sellers to benefit from professional guidance while potentially enjoying reduced commissions. This service emphasizes personalized support and can help you navigate the complexities of the selling process efficiently.

Houzeo, on the other hand, leverages technology to offer a more DIY approach. With flat-fee listings and a straightforward platform, Houzeo empowers sellers to manage their transactions, which can lead to significant savings on commission fees. This option is ideal for those comfortable with a hands-on process.

When choosing a platform for selling your home, understanding how much control you have over the process is crucial. Here’s how Clever and Redfin stack up:

Selling Process: Clever vs. Redfin

Clever: Personalized Control Clever offers sellers a blend of professional support and control. By connecting you with top-rated local agents, you retain the ability to make key decisions while benefiting from expert guidance. Clever’s model allows for customized marketing strategies and negotiation tactics, giving you significant involvement in the selling process. You can choose how hands-on you want to be, ensuring that your preferences are prioritized throughout the transaction.

Redfin: Technology-Driven Efficiency

Redfin provides a technology-driven approach that offers a high level of control, especially for tech-savvy sellers. With its user-friendly platform, you can manage your listing, view analytics, and communicate directly with interested buyers. Redfin’s tools allow you to make real-time adjustments to your listing and pricing, maximizing your ability to influence the selling process. However, Redfin’s emphasis on data and technology may mean less personalized support compared to Clever.

Is Clever Real Estate the Best Option for You?

Clever Real Estate may be the right choice for you if you’re looking for a cost-effective and streamlined way to buy or sell a home. By connecting you with top-performing local agents who offer discounted commissions, Clever allows you to save on fees while still receiving expert guidance throughout the process. Their services are designed to cater to a range of clients, from first-time homebuyers to seasoned sellers, providing access to valuable resources such as market analysis and home valuations. However, if you prefer a more traditional real estate experience with personalized service from a single agent, Clever’s model may not fully align with your expectations. Ultimately, the decision depends on your individual needs and preferences in navigating the real estate market.

The Bottom Line

Clever Real Estate effectively fulfills its commitment to a 1.5% commission while upholding high standards of professional service. For many sellers, the platform represents a beneficial compromise between traditional agents who charge full commissions and discount services that might compromise on quality.