What Is a Limited-Service Real Estate Agent?

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By Thomas O'Shaughnessy Updated January 26, 2023
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Edited by Jamie Ayers

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Editor's note: In March 2024, the National Association of Realtors (NAR) lost an antitrust lawsuit, leading to changes in real estate fees nationwide. As of August 17, 2024, buyer's agent commissions are no longer covered by the seller and must be negotiated separately.

What Is a Limited-Service Real Estate Agent? | What Do They Do? | Limited-Service vs. Full-Service Approach | Pros and Cons | Other Ways To Save 

Limited-service real estate agents offer fewer realty services at a lower rate. Sounds simple, right? Not exactly. A limited-service real estate agent's services will vary considerably by state and brokerage. 

And, while saving money is great, a limited approach won't make sense for most sellers who need the support, time, and professional expertise a full-service real estate agent brings to the table. We cover pros and cons of limited-service real estate agents, and discuss who should — and shouldn’t — use this approach. 

If you want to save money, but don't want to skimp on services, we can help. We offer a full-service sale experience for a low 1.5% commission rate. Contact us today to learn how you can save thousands on your next sale!

Key Takeaways

  • Limited-service real estate agents are considerably cheaper than traditional agents, but you'll have to handle most of the sale yourself
  • Most offer service packages or fee-for-service pricing options, which gives you more flexibility and control over what you pay
  • Listing with a limited-service real estate agent is risky and won't make sense for most sellers, as your home may sell for less and end up costing you more than you save

What Is a Limited-Service Real Estate Agent? 

A limited-service real estate agent provides fewer services than a conventional full-service agent for a lower rate. 

Most limited-service real estate agents offer several pricing and service tiers to customers, or offer a la carte options. This gives you a lot of control over how much you ultimately pay, and how closely your agent is involved (or not involved) in your sale. 

For example, a traditional listing agent typically schedules showings for prospective buyers at your home. A limited-service real estate agent may be hands-off when it comes to showings, leaving you to manage them on your own.

The benefits and drawbacks of this approach are clear. 

You’ll pay less with a limited-service real estate agent, but you’ll receive less support, too. That's why a full-service agent is often the best choice for most sellers. 

MORE: How to find the best real estate agent for you

State-specific minimum service laws 

In some cases, state law also dictates the minimum services a real estate agent must provide — including limited-service agents. For example, Missouri law requires all agents to:

  • Deliver offers and counteroffers to the seller
  • Advise sellers on offers and counteroffers
  • Help sellers negotiate offers and counteroffers

Fourteen states have minimum service laws in place, and several more states are considering similar legislation. In some states, you can formally waive these rights, but this isn't always the case. 

Editor's Note

If you’re considering a limited-service approach, always talk to a real estate attorney or other real estate professional to get the latest information for your state.

What Does a Limited-Service Real Estate Agent Do?

According to the National Association of Realtors (NAR), a limited-service agent doesn't offer one or more of the following services:

  • Advise sellers on different offers
  • Help sellers come up with counteroffers
  • Negotiate on the seller’s behalf
  • Arrange appointments for cooperating brokers to show the property
  • Present purchase offers procured by cooperating brokers

That’s a pretty wide definition! It's the reason service quality and support varies so much among limited-service real estate agents. 

For example, an agent who only sends over offers meets the definition just as much as one who manages all negotiations on your behalf, but allows agents to contact you directly for showings.

So, how do you know which services you’re getting from your agent? 

Simple — it should all be laid out, clearly and in detail, in your listing agreement. Before you sign, make sure you’re clear on what you will and will not be receiving from your agent!

Full vs. limited-service realtors 

When you work with a full-service real estate agent, you're definitely getting support for direct services, like photography and a for-sale sign in your yard. 

BUT the bigger benefit to working with a full-service agent is gaining access to their expertise in: 

  • Local market trends
  • Pricing (like a CMA) and staging strategies 
  • Negotiating with buyer's agents
  • Your area's network of real estate professionals 

If your goal is to get the highest possible price and fastest sale for your home, a full-service agent is likely your best choice. An agent who has a limited picture of these various factors can only provide limited advice. 

For example, a limited-service real estate agent who isn't tapped into your local network or trends may incorrectly handle offers as they come in. Or, if they've never actually seen your property, pricing may be wildly off. 

Homes that are priced too low will sell fast, but you'll leave money on the table that effectively cancels out any savings you could have made with a traditional agent. Homes that are priced too high can alienate buyers and languish on the market.

Looking for a better option? Our partner agents offer full-service support at a lower 1.5% commission rate. Contact us today to learn more! 

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Limited-service real estate agent vs. limited-service agent

In some places, the term "limited-service agent" refers to a dual agent — but they're very different. 

  • A limited-service real estate agent offers fewer services than a traditional agent
  • A limited-service agent, or dual agent, represents both the buyer and seller in a transaction

If dual agency sounds like a conflict of interest — it is! Advocating for the seller's and buyer's best interests at the same time is difficult, if not impossible. Because of this, dual agency is illegal in some states.

Before you sign your listing agreement, make sure you're clear about the type of transaction you're going into and the support you'll receive. 

» Learn more about dual agency

Limited-service real estate agent vs. flat-fee MLS listings 

Some people also confuse limited-service real estate agents and flat-fee MLS listing services, and for a good reason — many limited-service real estate brokers do offer flat-fee MLS packages as one of their pricing tiers.  

And technically a flat-fee MLS service does provide a (very) limited service: it lists your property on your local multiple listing service (MLS).

However, the official NAR definition provides a subtle but definite distinction between the two categories. According to NAR, a flat-fee MLS service will not provide any of the following services:

  • Advise sellers on different offers
  • Help sellers come up with counteroffers
  • Negotiate on the seller’s behalf
  • Arrange appointments for cooperating brokers to show the property
  • Present purchase offers procured by cooperating brokers

Look familiar? It’s the same list from the limited-service agent definition. But, while a limited-service agent does not provide one or more of those services, a flat-fee MLS service does not provide any. 

» Learn more about flat fee MLS services

Put simply, a limited-service real estate agent provides some support for your sale. Based on NAR's definition, a true flat-fee MLS service only lists your home on the MLS — and nothing else. 

Editor's Note

In the real world, it's a different matter. Companies that call themselves a flat-fee MLS service may offer support more in line with a limited-service approach. Don't get bogged down in the labels. Make sure your listing agreement notes the EXACT services you'll receive and at what price.

Limited-Service Listing: Pros and Cons

Not sure if a limited-service real estate agent is right for you? These are the major pros and cons. 

ProsCons
Much cheaper than traditional full-service realtorsLack of a full-service agent's expertise and guidance
More flexibility as you can tailor your experience and servicesLimited value compared to other options
Show more

Pro: Much cheaper than traditional full-service realtors

This is the main reason people choose to work with a limited-service real estate agent: they charge less than a conventional agent.

How much less depends on the agent and their pricing structure: 

  • Some charge a flat fee based on service tiers — for example, you may get all the services you need for a flat $2,000
  • Your agent may charge a commission rate that’s lower than the typical 3%, which can translate to thousands saved on a sale 

Almost all limited-service real estate agents are cheaper than working with a full-service, full-price agent. 

Pro: More flexibility 

Not everyone wants or needs a full-service experience. By picking and choosing the support you actually need, you can create a better deal that works for you. 

For example, if you work in marketing, business negotiations, or you’re an attorney, you may be able to perform a lot of an agent’s duties yourself. Likewise, if you're in a hot seller's market, your home may practically sell itself. 

Con: Lack of a full-service agent's expertise and guidance

Limited service means less service. This can become a big tradeoff for those who don't realize just how much work goes into a home sale. And, it's one of the biggest reasons many sellers should probably stick with a full-service agent. 

How challenging can this lack of support be? As noted, it can result in a home that's improperly priced or an agent negotiating on your behalf that doesn't truly understand your situation. 

Worse, if you need one of the services that your limited-service agent doesn’t perform, or your sale quickly becomes contentious or complex, you could face major challenges.

Once you sign a listing agreement with an agent, they’re generally your sole representative. If you need help negotiating the sale price, but your agent doesn’t offer negotiation help, no other agent can step in and pick up the slack — and you’re left high and dry. 

Editor's Note

If you do fire your agent and choose a different one, you'll have to start over from scratch. At this point, your house has sat on the market for a longer period, which can make it look undesirable (or overpriced) to buyers.

Con: Limited value compared to other options

Finally, one of the biggest arguments against limited-service real estate agents is that they're just not a great value in many cases. 

You can often find discount real estate agents who’ll offer more services, or even full-service support, at the same price point. And, because of the challenges mentioned, you'll do so without facing service quality risks. 

For example, we connect sellers with top local agents who offer a full-service sale experience at a comparably low commission rate of 1.5%. 

Interested in learning more? Contact us today to find out how you can save on commission, without sacrificing service!

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When Are Limited-Service Real Estate Agents a Good Choice? 

As these pros and cons illustrate, there will always be some tradeoffs when you work with a limited-service real estate agent versus a conventional agent. Typically, the majority of home sellers will have the best experience with a full-service agent. 

When would sellers potentially benefit from this approach? 

  • Good for sellers who: are very comfortable managing real estate tasks themselves, have a house that will likely sell itself in a hot market, already have a buyer lined up and just need additional support to finalize the sale
  • Bad for sellers who: want to get the highest price possible for their listing with the easiest sale; aren't comfortable managing negotiations, pricing, and other realtor tasks

Limited-Service Real Estate Agent Alternatives 

If you’re thinking about using a limited-service real estate agent, there are plenty of discount real estate alternatives at the same price point — or even lower. 

Depending on your specific needs, one of these options may be a better fit.

1. Use a flat-fee MLS service 

As we discussed, a flat fee MLS service lists your home on the local MLS, usually for a few hundred dollars. 

Beyond that, they don’t offer any of the services a conventional agent provides. They don’t help with marketing, staging, pricing, negotiating, or closing. Some may provide small add-on services, like lock boxes or for-sale signs. 

Note that you'll still need to offer a competitive buyer's agent commission, so you won't avoid all realtor fees. Expect to offer 2.5-3% commission, depending on your area. 

ProsCons
Low fee — generally around $200 Most charge fees up front, so you're out the money whether your home sells or not
You get your listing in front of potential buyers on the MLS The lack of expert guidance and support could wipe or diminish any savings
You retain total control over the sale processALL of the work of the sale process falls on you
Show more

Best for sellers who: are choosing to go for-sale-by-owner, are looking for a truly barebones experience, or can handle many of the agent’s duties themselves.

» Learn more about flat fee MLS services

2. Sell to an iBuyer

iBuyers are companies who use data tools to quickly assess home values and then purchase homes, often for cash. Think of a larger, more sophisticated — and more fair — version of a "We Buy Houses for Cash" company.

ProsCons
You'll receive fast cash offers in usually one or two days You can almost always sell for more on the open market
Many offer flexible closing timelines, with options often ranging from ten to 90 days You can expect to pay hefty service fees — up to 5-15% of your sale price
More convenient (and less stressful) than listing on the open marketSome iBuyers will ask you to perform presale repairs — or deduct the cost from your cash offer
Show more

Best for sellers who: have newer properties in suburban areas, sellers who prioritize convenience and speed over the highest possible sale price.

» Learn more about iBuyers

3. Explore other discount real estate options 

Some discount real estate companies offer full-service support at a price point that’s as low as — or even lower than — a limited-service real estate agent. 

ProsCons
Can help you save big on commission feesCosts more than very limited-service options, like flat-fee MLS services
Provides more support than a limited-service real estate agentService quality varies between companies — make sure you read reviews closely
Show more

Best for sellers who: want a full-service experience for less, sellers who need support for a unique property.

» Learn more about discount brokers

For example, we provide a free service that connects you with top agents in your area. Our partner agents provide full-service support at a pre-negotiated commission rate of 1.5%. 

You’ll receive just as much care and attention as a seller paying a full 3% listing commission, but save thousands of dollars. Intrigued? Contact us today to learn more!

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Related Links 

Read This Before You Go with a Flat Fee MLS Service: Flat fee MLS services can sound like a great deal — all the exposure of the MLS for a low, flat fee. But what do you really get and what are the tradeoffs? 

Discount Real Estate Agents: A Scam or Legit? Can discount real estate agents provide similar levels of service for less? We go over the benefits and potential pitfalls in this guide. 

How Much Does It Really Cost to Sell a Home? We review all of the costs you can expect to pay during your home sale and, more importantly, how to cut those costs down.

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