Selling a home today looks very different than it did even a few years ago. Homeowners are no longer limited to working exclusively with traditional real estate agents. Instead, there are now multiple ways to sell a home—each with different trade-offs in cost, control, speed, and support.
In addition to full-service agents, sellers can now choose from AI-powered selling platforms, cash offer companies, discount brokerages, and hybrid models. Each approach works differently and may be better suited for certain types of sellers, timelines, and property conditions.
Recent changes to real estate regulations have also reshaped how commissions and buyer representation work. In March 2024, updates to industry rules affected how buyer’s agent compensation is structured, making it more important than ever for sellers to understand all available options before choosing a selling strategy.
This guide is designed to help homeowners compare the most common home selling options in a clear, neutral way. Rather than promoting one approach, it explains how each model works, what it typically costs, and when it may—or may not—make sense.
Traditional Real Estate Agents
Traditional real estate agents typically handle pricing, marketing, showings, and negotiations in exchange for a full commission.Traditional real estate agents are still the top choice for homeowners who want to sell. These licensed professionals help sellers through the whole home-selling experience and give detailed support from day one.
How full-service agents work
Full-service agents take care of everything when you sell your property. They start by analyzing the market to set the right listing price based on similar homes nearby. Once they price your home, they get professional photos, write engaging listings, and promote your property across different channels. It also helps that they schedule showings, run open houses, and handle all the paperwork during the sale.
Typical commission fees and services
Real estate agents usually work on commission, charging between 5-6% of the final sale price. When you sell a $400,000 home, you'll pay $20,000-$24,000 in total commission fees. The listing agent and buyer's agent split this commission, each getting about 2.5-3%. These agents earn their fee by helping with marketing, pricing advice, negotiations, and managing the sale.
Pros: Local expertise and negotiation skills
Working with traditional agents gives you access to their deep knowledge of local markets. They know all about neighborhood trends, pricing strategies, and what makes each community special. These skilled agents use their negotiating experience to get you better deals and higher prices . Their network in the community helps them find off-market listings and connect you with trusted service providers.
Cons: Higher cost and less control
Traditional agents bring value, but they aren't cheap. You might also feel less in control since agents make many decisions based on what they know works best. Sometimes the traditional selling process moves slower because it depends on market conditions and when buyers are ready.
AI-Powered Home Selling Platforms
AI-powered platforms have changed how some homeowners approach the selling process.
AI-powered home selling platforms use data and automation to help homeowners compare pricing, exposure, and selling strategies.What AI platforms actually do
AI-powered home selling platforms use technology to automate and streamline parts of the selling process. These platforms analyze market data, comparable sales, and time-on-market trends to support pricing decisions, listing exposure, and transaction management.
Some platforms, such as Homa and SellMyHome.io, combine AI-driven tools with access to licensed real estate professionals, allowing sellers to benefit from automation while still receiving human support for critical steps like negotiations, contracts, and closing.
How AI combines with licensed agents
While technology plays a central role, most AI-powered home selling platforms still rely on licensed real estate professionals for key parts of the transaction. Human agents may assist with pricing guidance, property tours, offer reviews, negotiations, and legal compliance.
Rather than replacing agents entirely, these platforms use automation to handle repetitive or data-heavy tasks while reserving complex decisions and negotiations for experienced professionals. This hybrid approach is designed to balance efficiency with regulatory requirements and human judgment.
Cost structure and rebate models
AI-powered platforms use a variety of pricing models that differ from traditional commission structures. Some charge flat fees, while others offer commission rebates or reduced listing costs, depending on how services are bundled.
Compared to traditional full-service commissions, these models may reduce overall selling costs for some homeowners. However, the actual savings depend on factors such as home price, local market conditions, and the level of support included.
Pros: Automation and savings
The main benefits include:
- Budget-friendly savings through commission rebates
- AI-powered search tools that analyze priorities better
- Data-driven pricing recommendations
- Optimized paperwork and transaction management
- Quick responses through automated systems
Cons: Limited emotional intelligence and negotiation
Notwithstanding that, AI platforms have their limits. These systems may lack the emotional intelligence needed to fully understand buyer psychology or seller attachment to a home. In addition, technology alone may not capture neighborhood nuances, unique property characteristics, or other non-quantifiable factors that can influence negotiations.
For this reason, most AI-powered platforms still rely on licensed real estate professionals to support negotiations and closing, particularly in more complex transactions.
Cash Offer Companies and iBuyers
Cash offer companies typically prioritize speed and certainty, often resulting in faster closings with limited negotiation.Cash offer companies and iBuyers have become a more visible part of today’s real estate market. These instant buyers offer sellers an alternative way to close quickly without going through the traditional listing process.
How instant cash offers work
Cash buyers review your home as-is, either online or through a quick walk-through, and make an offer within 24-48 hours. You start by submitting your property details online. The company then sends you a preliminary offer based on their algorithms and market information. A property inspection follows, and you'll get a final offer that shows your cash payout after they subtract mortgage payoffs, fees, and repair costs.
When cash buyers make sense
Sellers who need quick solutions often turn to cash buyers. This includes people who need to relocate for work, face foreclosure risks, go through divorce, or handle inherited properties. The companies that buy homes "as-is" are a great fit for sellers whose properties need major repairs since they don't ask for renovations or improvements.
Pros: Speed and certainty
Cash deals typically close much faster than traditional financed sales, often with fewer contingencies. By removing financing approvals and many common delays, cash buyers offer a higher level of certainty for sellers who prioritize speed and simplicity.
Cons: Lower sale price and limited negotiation
The main trade-off with cash buyers is price. All-cash offers are often below market value, reflecting repair assumptions, resale risk, and the convenience of a fast closing. These offers also tend to leave limited room for negotiation compared to traditional listings.
Hybrid and Discount Agent Models
Home sellers can choose between traditional agents and selling on their own. Alternative models give them flexible options that cut costs while keeping professional support.
What is a 1% listing agent?
A 1% listing agent delivers full-service representation at a reduced listing fee. Instead of charging the traditional 2.5–3% listing commission, these agents charge a lower percentage while still providing services such as pricing guidance, marketing, negotiation, and transaction management.
How hybrid models balance cost and service
Hybrid brokerages combine traditional and discount approaches. They typically charge reduced listing fees of 1-2% or flat fees with possible rebates. Redfin stands out as a hybrid model that returns 15-45% of commissions to buyers. These models work by dividing tasks among specialists who handle showings, paperwork, and closings separately. This specialized approach helps optimize costs.
When flat-fee MLS service makes sense
Flat-fee MLS services let you list on MLS for a one-time payment rather than a percentage commission. Service costs range from $89 to $4,000 based on what's included. These services work best for experienced sellers who can handle showings, negotiations, and paperwork on their own. Homes in competitive markets that sell quickly might need only this simple support.
Conclusion
The best way to sell your home ultimately depends on your specific situation and priorities. Each selling method comes with its own advantages and trade-offs, whether that means higher service, lower costs, faster timelines, or greater control.
Understanding how traditional agents, AI-powered platforms, cash buyers, and hybrid models work can help homeowners make informed decisions rather than defaulting to the most familiar option.
Some platforms, such as SellMyHome.io, help homeowners compare different selling options and evaluate how each approach may align with their goals, timeline, and budget.
Key Takeaways
Understanding your home selling options can save you thousands of dollars and help you choose the approach that best fits your timeline and priorities.
• Traditional agents cost 5-6% commission but offer full-service expertise - While expensive, they provide local market knowledge, professional negotiation, and comprehensive transaction management.
• AI-powered platforms can save $10,000+ through commission rebates - These hybrid models combine technology automation with licensed agent support, typically charging only $2,000 flat fees.
• Cash buyers offer 7-14 day closings but pay 10-17% below market value - Perfect for urgent sales or as-is properties, though you'll sacrifice maximum profit for speed and certainty.
• 1% listing agents provide full service at half the traditional cost - On a $500,000 home, you'll save approximately $12,750 in listing fees while maintaining professional representation.
• Your priorities should drive your choice - Consider whether you value maximum profit, selling speed, or cost savings most when selecting between traditional agents, AI platforms, cash buyers, or discount models.
The key is matching your selling method to your specific situation, timeline, and financial goals rather than defaulting to the most familiar option.
FAQs
Q1. What are the main options for selling a home? The main options for selling a home include traditional real estate agents, AI-powered home selling platforms, cash offer companies (iBuyers), and hybrid or discount agent models. Each option has its own advantages and trade-offs in terms of cost, service level, and selling speed.
Q2. How much can I save by using alternative selling methods? By exploring alternatives to traditional real estate agents, you can potentially save significant amounts. For example, using a 1% listing agent instead of a traditional 3% commission could save you around $8,000 on a $450,000 home. AI-powered platforms often offer rebates that can result in savings of $10,000 or more.
Q3. What are the benefits of using an AI-powered home selling platform? AI-powered platforms offer several benefits, including significant cost savings through commission rebates, efficient AI-driven search and pricing tools, streamlined paperwork management, and faster response times. They typically combine automation with support from licensed agents for crucial aspects of the transaction.
Q4. When should I consider selling to a cash buyer or iBuyer? Cash buyers or iBuyers are particularly beneficial in time-sensitive situations such as job relocations, foreclosure risks, or when dealing with inherited properties. They're also a good option if your property needs significant repairs, as these companies often purchase homes "as-is" without requiring renovations.
Q5. What is a hybrid or discount agent model, and how does it work? Hybrid or discount agent models offer a middle ground between traditional full-service agents and DIY selling. These models, such as 1% listing agents or flat-fee MLS services, provide professional support at reduced costs. They typically offer full services like expert pricing, marketing, and negotiation, but at lower commission rates or flat fees, potentially saving sellers thousands of dollars.
