With the increase in home values in the recent years, the traditional realtor commissions have also made a huge jump. Thus, low commission real estate agents are exactly what the sellers need at this point in time.
» In this guide, we’ll cover:
- Rankings: Best Low Commission Real Estate Agents & Companies in the US
- Detailed Reviews: America’s 11 Best Low Commission Real Estate Agents & Companies
- What are Low Commission Real Estate Agents/Companies?
- Important Features Of Low Commission Real Estate Agents/Companies
- Wrapping Up: Best Low Commission Real Estate Agents & Companies
- Frequently Asked Questions (FAQs)
Rankings: Best Low Commission Real Estate Agent
| Rank | Low Commission Real Estate Agent / Company | Reviews |
|---|---|---|
| 1. | 🥇 Houzeo* | -Affordable listing fees -High quality customer service -No hidden fees -Multiple add-on features |
| 2. | 🥈 Redfin | -20-30% savings on commission fees -Advanced technology -Slow listing process -Average customer service |
| 3. | 🥉 LisitngSpark | -Affordable upfront fees -Good A La Carte options -Slow listing speed -Limited coverage |
| 4. | SimpleShowing | -Low listing fee -Qualified agents -Minimal savings -Average customer service |
| 5. | Ideal Agent | -Qualified agents -Nationwide coverage -Marginal savings -Average technology |
| 6. | Trelora | -Flat listing fee -Decent savings for low value homes -Average customer support |
| 7. | HomeLight | -Good technology -Decent agent coverage -No savings on commission |
| 8. | Homie | -Affordable listing fee -Good customer support -Inconsistent agent quality |
| 9. | Houwzer | -Ideal for high value homes -Good listing speed -No personalized support -Restricted coverage |
| 10. | Prevu | -Quality Agents -Limited agent matching -Restricted coverage |
| 11. | REX Real Estate | -Personalized support -Limited visibility -Risky model |
* Houzeo is not a real estate agent. It is an advanced real estate tech platform that collaborates with brokers to sell properties.
Detailed Reviews: America’s 11 Best Low Commission Real Estate Agents & Companies
1. Houzeo
Houzeo aids home sellers in listing their homes on the MLS at a discounted rate. With Houzeo, you can save almost half of the overall realtor commission. It is one of the best low commission real estate companies out there.
Houzeo provides you options of choosing different packages tailored to varying needs. Contract review, pricing assistance, and professional photography are some of the key features that you get as part of the Houzeo plans.
Houzeo has advanced customer dashboard where you get access to multiple services. You can view and compare offers, counter offers, schedule showings, and do so much much more.
With Houzeo, your property gets listed on the MLS within a few hours of receiving the request. This initiates the selling process immediately.
Houzeo is also one of the most popular For Sale By Owner (FSBO) platforms in the US.
🔍 Check out: Houzeo Review: You NEED to See These Reviews
- Wide coverage in the US
- Potential savings
- Quick listing on MLS
- Syndication on other real estate websites like Zillow, Realtor.com, and more
- 100% online
- Advanced mobile app
- Multiple service plans
Houzeo has a rating of 4.9 out of 5 (1,916) on popular review sites.
» Houzeo Review: Is the $349 Flat Fee Worth It?
Houzeo is present in 80+ Markets in the US.
2. Redfin
Redfin is considered to be one of the best low cost realtors. It comes with amazing technology to aid in the home selling process.
The low commission realtor takes 18 days to list a property on the MLS which is a significantly slow process. However, Redfin does provide extra features like open house scheduling, yard sign, professional photographer, and much more.
Redfin is known for its technology. In fact, it is the best when compared with other companies in the category. The brokerage provides a unique seller dashboard which makes the selling process easy and comfortable.
RedfinNow service enables sellers to have cash offer in place if they need to let go of their property fast. Concierge and Full Service are other Redfin plans that are marked at 2% and 1% commission respectively.
🔍 Check out: Redfin Reviews
- Great technology
- Thorough listing agreement
- Multiple services
- Full-service brokerage
- Buyer rebate if you buy and sell from the platform
- Slow MLS listing
- Average customer service
Redfin’s averages 3.9 out of 5 on Consumer Affairs
Redfin is available in 80+ Markets in the US.
3. ListingSpark
Pay-as-you-go is one of the best low-cost real estate agents. ListingSpark is based on this. It costs you $7 per day to stay on the MLS and use some of its features.
Even though ListingSpark has great services and is thought to be a good low-commission realtor, it still takes a lot of manual work to get the property on the MLS. This causes a little bit of time to pass in the sale of the item.
People who sell homes use ListingSpark because it has a lot of good features and add-on services that make the job easier and more comfortable for people who want to sell their homes.
Also, the low-commission realtor has a “Premium” plan that has a fixed 0.5 percent commission fee, more add-on features than the “pay as you go” plan, and more money back if you don’t get what you want.
🔍 Check out: Time it takes to sell a house
- Affordable upfront fees
- Flexible services
- Decent market analysis
- Thorough documentation for the selling process
- Closing calculator to aid in deriving the closing cost
- Full-service brokerage
- Slow MLS listing
- Limited coverage
- Add-on features are a bit expensive
ListingSpark’s averages 4.3 out of 5 on BirdEye.
ListingSpark has coverage in Texas only.
4. SimpleShowing
SimpleShowing, like many other low commission real estate brokerages, provides an agent matching service. The 1% listing fee brings about some savings when compared with 3% real estate agent commission.
The low commission realtor has a low number of agents to number of customers ratio which may lead to compromise on quality at certain times.
SimpleShowing provides add-on services like listing on MLS, professional photographer, home evaluation, and more, similar to those provided by other low commission real estate agents.
🔍 Check out: Negotiating real estate agent commission
- Quality agents
- Low listing fee i.e., 1% when compared with 3% real estate commission
- Mobile App available
- Marginal savings
- Poor agent quality occasionally
- Average customer service
- Restricted coverage
SimpleShowing is rated 4.6 out of 5 on TrustPilot.
SimpleShowing covers only Texas, Florida, and Georgia.
5. Ideal Agent
Ideal Agent provides sellers with quality low commission real estate agents. A major drawback of Ideal Agent is that it charges 2% listing fee which is significant when compared with other low cost realtors. This also means limited savings.
Ideal Agent helps with free agent matching service, but the seller is no way obligated to go with the selected agent(s). The good part is the company hires only the top-notch realtors (top 1%), making it a reliable low fee realtor.
The selling process requires home sellers to talk to concierge after which an agent will be assigned. This brings a bit of delay in selling a property.
🔍 Check out: Ideal Agent Reviews
- Quality agents
- Wide coverage
- Quick MLS listing
- Good customer service
- Marginal savings
- Single agent matching impacting flexibility
- Inconsistent agent matching
- Average technology
Ideal Agent averages 4.9 out of 5 on TrustPilot.
Ideal Agent has a coverage across the US.
6. Trelora
Trelora is a low commission full-service realtor provider with flat listing fee ranging between $3000-$4000 as part of the basic plan. They also have premium listing options priced at 1% and 2% of the sale price.
The Premium plans provide good amount of features required to sell a home comfortably. Like some other low commission real estate agents providers, Trelora has limited realtors that handle large volume of customers leading to low quality selling experience occasionally.
Trelora works on a team-based model which means different agents feature at different stages of the selling process. This looks efficient but can create issues because of multiple people involved.
Trelora also provides add-on services like professional photography, yard sign, drone photography, virtual staging, professional marketing, and much more.
🔍 Check out: How soon can you sell a house after owning it?
- Low quality selling experience occasionally
- Limited savings on low value homes
- Limited coverage
- Average customer support
- Low on technology
- Low listing fee as part of basic plan
- Full service brokerage
- Flexible add-on features
- Commission rebate for buyers
Trelora has an average rating of 4.5 out of 5 on Yelp.
Trelora covers only Arizona, California, Colorado, Georgia, Missouri, North Carolina, South Carolina, and Washington.
7. HomeLight
HomeLight, a low commission realtor provider, claims to have ample experience in the real estate selling domain. They have worked with several sellers and low commission real estate agents and have a smooth selling process.
A disadvantage of HomeLight is that traditional commission fee still applies leading to zero savings. The platform has similar process like some other low commission real estate agents providers. The seller is tagged with a low fee broker with a choice to opt for full or limited services.
HomeLight also provides features like professional photos, staging home, hosting open house, etc.
🔍 Check out: HomeLight Reviews
- Average listing speed
- Only off-market properties
- No savings
- Degraded agent quality occasionally
- Available only in major U.S. cities
- Good technology
- Decent agent coverage
- Holistic analysis before agent alignment
HomeLight has a consumer rating of 4.51 on Sitejabber
HomeLight caters only major U.S. cities.
8. Homie
When compared with other low commission real estate companies, Homie is a cheap option. Their model works on $3500 flat fee, no matter what the sale price is.
Homie does not provide in-person support which means that the seller has to get involved in majority of the tasks. However, the does provide virtual agent support.
With Homie, there is a quality risk as limited number of agents provide services to a large number of customers. Also, Homie provides services like professional photos, 3D tours, yard signs, home value report, and more.
🔍 Check out: Homie Reviews
- Degraded quality occasionally due to limited agents
- No in-person agent support
- Limited coverage
- Average customer support
- Low on technology
- Marginal savings on low value homes
- Low listing fee
- Decent listing speed
- Commission rebate for buyers
- Mobile App available
Homie is rated 2.5 out of 5 on Yelp.
Homie covers only limited cities in Arizona, Colorado, Idaho, Nevada, and Utah.
9. Houwzer
When you are looking for low commission real estate agents to sell high value homes, Houwzer is one of the most sort out options. The low commission realtor works at $5000 flat fee proving to be a good option for high priced (1M+) homes. Though it might not be that great for low value houses.
Houwzer has limited real estate agents which could lead to quality issues as those limited realtors cater to large number of customers.
Like Trelora, Houwzer also provides add-on services like professional photography, 3D tour, mail advertizing, and more. Also, the low fee realtor claims to sell a property 20 days faster than average.
🔍 Check out: What is pocket listing?
- A bit expensive for low value homes
- Average experience due to limited number of agents
- Limited coverage
- Average customer support
- Low on technology
- Low listing fee for high value homes
- Decent listing speed
- Important services in place
- $2500 rebate for customers who buy and sell from the platform
Houwzer is rated 4.5 out of 5 on Yelp.
Houwzer covers only Florida, New Jersey, Maryland, Pennsylvania, Virginia, and Washington.
10. Prevu
Prevu, one of the real estate agents with low commission fees, offers sellers to list their property at a lower rate (1.5% of sale price) when compared with the traditional 3% realtor commission. When you buy a house from Prevu, you get a 2% rebate.
The reduced rate is still high when compared with other low commission real estate brokers which leads to some of the sellers look for alternatives. Just like other low cost realtors, Prevu has limited real estate agents onboarded which makes them over-loaded leading to poor selling experience.
Prevu provides add-on features like home showings, professional photographer, listing on MLS, and much more.
🔍 Check out: What is a home appraisal and what are some tips to tackle it?
- Quality agents
- Good buyer rebate
- Variable listing fees across states
- Limited agent matching
- Degraded selling experience due to lesser number of agents
- Average customer service
- Restricted coverage
No reviews found on enough credible websites to provide a positive or negative rating for this company.
Prevu caters only New York, Massachusetts, Connecticut, California, and Pennsylvania.
11. REX Real Estate
REX Real Estate, one of the low commission real estate companies, offers sellers to list their property at 2.5%. This is near to traditional realtor commission, but the interesting part is that with REX Real Estate, you may not need to pay buyer agent’s commission.
A drawback of REX Real Estate is that you don’t get to list your property on MLS which gives it limited visibility.
REX Real Estate targets unrepresented buyers thus trying to eliminate buyer agent and respective commission. Else, if a buyer agent is involved, you will have to pay the traditional realtor commission.
The low commission realtor provider uses paid ad campaigns and social media marketing methods to advertise home to those buyers who are actively looking for properties on the internet.
🔍 Check out: REX Real Estate Reviews
- Considerable savings in case an unrepresented buyer is available
- Personalized support
- Buyer commission rebate
- Limited visibility
- Selling model is risky and dependent on external factors
- Average customer support
Houwzer is rated 2.71 out of 5 on BBB.
REX Real Estate caters Arizona, California, Colorado, District of Columbia, Florida, Georgia, Illinois, Maryland, Nevada, New York, New Jersey, Oregon, Pennsylvania, Texas, Virginia, and Washington.
What are Low Commission Real Estate Agents/Companies?
Low cost real estate agents & companies are brokers that work at a discounted rate than at the traditional 3% realtor commission. This means they will work at a flat fee or a lower commission percentage. With the introduction of concepts like Flat Fee MLS and Discount real estate brokers, sellers are slowly moving away from traditional realtor offerings.
🔍 Check out: The realtor commissions are declining
The level of services provided totally relies on the low commission realtor. Most of the low cost real estate agents/companies enable full brokerage which gives the sellers same tools as traditional realtors. While on the other hand, some low cost realtors provide less number of services or A La Carte services.
A low fee real estate brokerage firm is able to pull this off by tagging a single agent with multiple sellers. This ultimately settles the low commission factor but it may lead to degraded quality of service. Some realtors also focus on technology to ease out the selling process, thus making way for the services to be catered at a low price.
Full-Service Real Estate Agents vs Low Commission Real Estate Agents
Full-service real estate agents are involved in and in charge of the whole process, from start to finish, so they can help you buy or sell a home. During each step of the process, they answer every question and explain everything in simple terms.
This “full-service” treatment provides their clients with a sense of security and confidence. They are available around the clock, and weekends tend to be the busiest for full service agents.
Here’s an example of what full-service agents take care of:
| Services | Description |
|---|---|
| Decision Making | When it comes to making a decision, full service real estate agents give options and advice. |
| Pricing | Pricing your home correctly requires the use of modern tools and data combined with expert local knowledge. |
| Marketing and Promotion | By expertly marketing and promoting your home, you can get qualified buyers to come to your house. |
| List Your Home | List the home on the MLS and use other digital and traditional marketing strategies to get people to see it. |
| Provide References | Recommend personal references and resources for home inspectors, handymen, landscapers, escrow, title, loans, and other people who can help. |
| Simplify Paper Work | Make sure you understand the legalese and piles of paperwork so you don't have to do it alone. |
What are the different types of Low Commission Real Estate Agents and Companies?
Flat Fee MLS Brokers
Let’s say you decide to use a flat-fee (no commission) service to save money. You agree to pay the fee, and the terms of what you will receive in exchange are clearly stated in the contract. You may receive a listing on the Multiple Listing Service (MLS), some basic photography, flyers, and one open house event. Anything you want to do above and beyond that is entirely up to you.
If you choose a no-commission home sale, you will be responsible for almost all of the details, which means you will need to be familiar with the local real estate sales process. If you have the necessary skills and time, this is an excellent option. You can save a significant amount of money.
Our top pick is Houzeo. It has the edge over all the other flat fee MLS service providers we’ve reviewed because of its trio of incredible features. More savings, advanced technology, and exceptional customer service are just some of the benefits of using Houzeo.
🔍 Explore more: What is Houzeo?
We’ve compiled a list of the best low cost real estate listing services in each state. Click on your state to check them out!
Full Service Virtual Real Estate Agents
It’s clear from the name that all of the services will be provided over the web. In the same way that traditional real estate agents do, they can help you find a home. The low-fee real estate agent here does the same things as a full-price real estate agent, but at a lower price.
In spite of the fact that there won’t be any face-to-face visits, the other services like offer contract preparation, price negotiation, and showing time will all be free of charge. Virtual Full-Service Agents are a good choice for sellers who want to avoid paper at all costs.
If you are looking for discount real estate brokers to sell high-value homes, Houwzer may be the best bet for you.
Full-Service Flat Rate Real Estate Agents
In some places, you can choose an agent who charges a flat rate. For a flat rate of $3,000-$6,000, the agent will sell your home. Usually, the flat rate is based on how much the home is worth and how good of a job the agent does. In this case, there is no percentage listing fee to pay. Everything costs the same amount.
Examples: Homie is one of the best real estate agents that charge a flat fee of $3500 to list a home.
Discounted Commission Full-Service Real Estate Agents
Discount real estate brokers (also called low-cost real estate agents, discount realtors, or low-cost real estate brokers) are real estate agents who charge less for certain services. To save money, a discount realtor will charge less than the standard agent commission of 3% (listing agent commission).
Instead, he or she will work for less (such as 1 percent to 2% commission or a pre-defined flat fee) and provide fewer services. People who sell things can easily save a lot of money because the fee is less. They usually offer the same services as full-service real estate agents. The main difference is in the price.
Important Tradeoffs in Using Low Commission Real Estate Agents
| 💰 Listing Fees | As a low commission realtor, listing fees is a priority for sellers. The lesser the fees, the better are the chances of attracting home sellers. |
| 🧳 Services | Apart from listing fees, most sellers look for services provided by less commission real estate agents/brokerage firms. If you get a good number of features at a low price, sellers will definitely go for that realtor/company. |
| 📲 Technology | Technology will ease out the selling process and will also impact the realtor pricing. More advanced the technology, the lesser is the price expected. |
| ☎️ Customer Support | A good customer support can really help the sellers in their selling process. It is one of the primary factors in choosing a low commission real estate broker or else the seller will have to do most of the ground work. |
| 📍 Coverage | A good low commission realtor/company should cover most of the states to be helpful to the sellers. |
What is the Average Realtor’s Commission?
The ideal commission for a real estate agent is 3 percent of the sale price, but the rate typically ranges between 2.5 and 3 percent. This is applicable to both the selling and buying agent in a transaction. In the end, it comes out to be between 5 and 6 percent of the population.
Pros and Cons of Low Commission Real Estate Agents & Companies
Pros of Using a Low Commission Realtor
Technologically Advanced
The world we live in today is technologically advanced and extremely fast-paced, and everyone expects everything to be available at the touch of a button. Consequently, when time is of the essence, online selling is the most convenient option. Not only does it save you money on transportation, but it also saves you time.
Using
Houwzer and Redfin’s technologically advanced platforms, you can manage showing appointments online while also taking advantage of Virtual home tours and other premium marketing services that are provided at no additional charge.
Do It Yourself
If not you, is there anyone else who knows your home as well as you? You have complete control over the content of your listing description, how you handle showings, and whether or not you hold open houses for potential buyers.
With the ability to communicate with and even negotiate with the buyer’s agent, you have the advantage over the seller. Due to the fact that it is your home, you can often be a more effective negotiator than a real estate broker in many circumstances.
Cons of using a Low Commission Realtor
Dual Agency
Real estate agents who represent both the buyer and the seller are known as “dual agents.” This practise is usually not encouraged in many states. Due to the low profit margins of even the commission-based agent, it is more tempting to double-end a sale.
Selling It For Less Money
Perhaps your house will sell for less money than if you’d hired the best realtors in the business. With the right strategy, the right price, and the right agent, you can sell a home for more money than you ever thought possible. They can also assist during the negotiation phase of the sale. They can assist the buyer if they request repairs following an inspection.
Limited Assistance After Sale
There are usually a large number of low-commission agents who are attempting to complete a large number of transactions, so if one of them does not work out, they may not be concerned. Following the sale of your home, people are already looking forward to the next one. However, there is a great deal more that takes place after the contract is signed.
Alternatives to Low Commission Realtors
For Sale by Owner (FSBO)
Sellers who prefer to be hands-on and who have the necessary time and resources can list their properties for sale by the owner, also known as “FSBO,” on the real estate market. As a result of choosing this path, you will be responsible for all aspects of being a real estate agent, including everything from taking listing photos to scheduling showings.
It is possible to sell a house without using a real estate agent and save the standard 6 percent commission, but if you are a first-time home seller, this may not be the best option for you.
iBuyers or Cash Companies
An instant buyer, also known as an iBuyer, is a business that buys houses for cash and doesn’t have to wait for a buyer to come along. The main goal is to sell it quickly and efficiently instead of the usual way. They use the most up-to-date technology and give you a lot of options when it comes to closing.
They make reasonable deals, but they charge a lot for service. Most iBuyers charge extra fees at the end of the deal, which can push your commissions up to 12 percent. In Redfin Now, for example, you can pay up to 17% in service fees, 3% in maintenance fees, and 1% in closing costs. This can add up to a whopping 17%!
iBuyers have their own set of rules and prices that aren’t always in line with the market. The best thing you can do is choose a discount real estate broker instead and save a lot of money!
Discount Real Estate Brokers
The services of discount real estate brokers (or low-cost real estate agents, or discount realtors) can be bought for a cheap price. Instead of charging the seller the standard 3% commission, a discount realtor charges less (like 1% to 2% commission or a set fee) and does a limited amount of work.
Many times, the reduced fee can save the seller money. Using a discount real estate broker when you sell your house is a great way to save money. However, you must make sure that you aren’t cutting back on quality or service.
Final Word: Best Low Commission Real Estate Agents & Companies
Lower commission real estate agents and companies can really prove to be a boon for the sellers. They offer services similar to traditional realtor but at a reduced price. Though, it might come at a cost. There is a risk of service degradation as an agent will cater to multiple sellers. This may or may not be true as some low commission brands provide full service brokerage at a marginal lower rate (2-2.5%). In the end, it depends on the plans that these low fee real estate agents/brokerage firms offer.
Houzeo, a low-fee Realtor provider, provides you with this flexibility and unique features that no other low-fee Realtor or company offers. It is entirely online and digitised, which streamlines the home selling process.
Additionally, Houzeo is widely regarded as the best flat fee MLS and FSBO provider in the United States.
» Want to know more? Check out these stellar Houzeo reviews to learn why it is one of the best For Sale By Owner websites.
Frequently Asked Questions (FAQs)
What changes have the low commission real estate companies brought in the US real estate market?
More control over home sale: Most of these companies avail their services on à la carte basis, which means the home seller can specifically choose which services they want and control their expenses. The home sellers are also open to sell their home to an unrepresented buyer saving themselves the buyer agent commission.
Affordable packages: Traditionally, agents used to charge 6% commissions to their clients, which was then split between the listing agent and the buyer agent equally. These low commission real estate companies eliminate the need of a listing agent and save you 3% right away, also they provide you with premium services on à la carte basis and at affordable rates.
Expedited home sale process: Most of the companies that we’re going to discuss further in this article expedite your home sale process by listing your home on the MLS within 24-48 hours and due to their modern technology, they accelerate a week!
What is a low commission real estate agent?
A low commission real estate agent is a broker that works at a reduced fee when compared with the traditional real estate commission. The low commission real estate agents can deliver flexible services that may or may not be similar to the services provided by a full-service realtor. It is recommended that the sellers should choose a low commission realtor based on their requirements.
How do I find low commission real estate agents near me?
There are multiple low commission real estate brokerages with lowest fees that have come up in recent years. Coverage is important as every company does not have a nationwide coverage. Thus, you need to be careful before you opt for a particular low commission realtor.
To find low commission real estate agents near you, you can check the web for the brokerages in your state. Another way is to check with your local agent, friends, or family who have exposure in the real estate space in your area.
Which low commission real estate agent is the best?
There are multiple factors that need to be considered when you want to find the best low commission real estate agent/brokerage. We have tried to incorporate all the relevant details in this blog to help you identify which is the best realtor out there in the market. Real Estate brokerages like Houzeo, Redfin, and ListingSpark top our charts based on different features. However, the list may vary based on your requirements.
What is the traditional real estate commission?
The traditional realtor commission varies between 5-6%. This real estate commission is divided equally between seller's agent and the buyer's agent.
What are the savings attached with low commission real estate agents?
The low commission real estate agents work at a discount commission. The commission offered by such realtors could be 1-2% instead of 2.5-3%. This means, if you have a house with selling price of $500,000 and the commission rate offered is 1%, the realtor can save $10,000. For 2%, the savings are $,5000.
What are some other methods of saving on realtor commission apart from low commission real estate agents?
There are several other methods of saving on real estate commission. There are using - discount brokers, FSBO, iBuyers, We buy cash companies, and negotiations
How to get low commission rates?
You can either negotiate with realtor or opt for a real estate agent/ brokerages with lowest fees.
How to find a good low commission realtor?
Before choosing a good low commission real estate agent, it is required to choose a low commission brokerage based on your requirements. You will not easily find an independent low commission realtor, rather, all low commission brokerages team up with realtors and provide discounted fee services.
As part of the process, you are tagged with a low commission realtor by the respective low commission brokerage. You can evaluate the realtor and accordingly decide if you want to go with that real estate broker or not.
How low commission real estate agents make money?
Low commission real estate agents follow the policy of handling more customers at reduced rates. With low commission, realtors are able to attract more sellers that otherwise is hard in traditional scenario. Some brokerages help sellers at discounted rate while providing them the same services as by a traditional real estate agent. While others provide restricted services.
Most full-service brokerages hire realtors and provide a streamlined process which helps them save money.
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