Is a 1% commission realtor too good to be true? It depends on which one you hire, and that’s not the answer most sellers want when they’re trying to figure out how much they’ll actually walk away with at closing.
Here’s the honest version. A handful of brokerages will list your home for 1% of the sale price instead of the typical 2.5% to 3% listing fee, which on a $400,000 home translates to roughly $6,000 to $8,000 back in your pocket at closing.[1]
The catch is that not every company advertising "1% commission" charges a true 1%. Some charge 1.5%. Others charge a $3,000 to $5,000 minimum that pushes the effective rate to 2% or higher on lower-priced homes. Service quality swings from "salaried in-house agent and a full marketing package" on one end to "you’ve never met me, my virtual assistant will handle your listing" on the other.
What works for you depends on more than the listing fee, too. It depends on your home’s price, your local market, your timeline, and whether your agent will actually be the one negotiating the contract or whether your file gets handed to a junior agent six months out of pre-license school.
Two of the realtors interviewed for this guide, Christina Rordam in Orlando and David Baca in Henderson, NV, both pointed to that handoff as the single most overlooked risk in the discount model.
So, the answer to "should I use a 1% realtor" is "probably yes, with the right one."
Our guide breaks down which 1% commission services actually deliver, what to ask before you sign, where the post-NAR-settlement commission landscape really stands two years in, and which math actually matters when you’re comparing a 1% listing fee against a traditional one.
1% commission savings snapshot nationwide
How much a lower listing fee actually saves you on a $400,000 home, based on Clever's ongoing survey of real estate agents.
- Average listing fee nationwide
- 2.88%
- Clever's agent survey (533 agents)
- Avg listing commission cost
- $11,520
- On a $400,000 home
- Savings at 1% listing fee
- $7,520
- vs. United States average
- Savings with Clever 1.5%
- $5,520
- vs. United States average
Best 1% commission realtors, at a glance
🏅 Our top picks, reviewed
1. Clever Real Estate: Best overall service
- Listing fee: 1.5% ($3,000 minimum)
- Coverage: 50 states
- Rating: 4.9/5 (4,400+ reviews)
Clever Real Estate is an agent-matching platform (and licensed Missouri brokerage) that connects sellers with pre-vetted agents from major brokerages like Keller Williams, RE/MAX, and Berkshire Hathaway who’ve agreed to list your home for a 1.5% listing fee ($3,000 minimum). It’s not a traditional brokerage. Your agent works at their own firm, and Clever takes a referral fee from the agent’s commission at closing.
Why it ranks high. Nationwide coverage across all 50 states, a 4.9/5 rating across 4,400+ verified reviews, and the ability to compare multiple agent matches before committing. Clever has facilitated over 200,000 customer transactions and reports $220M+ in consumer savings to date.
Drawbacks to consider. Clever’s 1.5% rate is not a true 1% listing fee. That half-percent difference costs an extra $2,000 on a $400,000 sale. And agent quality can vary. You’re trusting the vetting process rather than working with a company’s own salaried team. Some third-party reviews note aggressive follow-up calls after initial sign-up.
Best for: Sellers who want full-service agent representation with meaningful savings and the flexibility to interview multiple agents. Fill out a short form to get started with Clever.
Not ideal for: Sellers laser-focused on the lowest possible listing fee, or those who prefer a single dedicated team model.
2. 1 Percent Lists: Best for the lowest listing fee
- Listing fee: 1% (~$3,000 minimum, varies by franchise)
- Coverage: 18 states
- Rating: 5.0/5 (900+ reviews)
1 Percent Lists is a franchise-based brokerage that charges a true 1% listing fee. Founded in 2015 in Louisiana, it has expanded to 50+ offices across 18 states through franchising since 2020.
Why it ranks high. It’s one of the few companies that actually delivers on a 1% listing fee with full-service representation, including MLS listing, professional photos, showings, and negotiation support. Customer reviews are strong: 5.0/5 across 900+ verified reviews.
The catch. Because it’s a franchise model, service quality and agent experience vary significantly by location. The $15,000 franchise fee and 5% to 6% royalty structure means franchisees have overhead pressure that could incentivize higher volume over personalized attention. Coverage is still regional, so you may not find an office in your market.
Best for: Sellers in covered markets who want the absolute lowest listing fee from a dedicated agent.
Not ideal for: Sellers in markets without a local franchise, or those who want to compare multiple agents before choosing.
3. Houwzer: Best for high-value homes
- Listing fee: 1% ($2,500 minimum, $10,000 maximum cap)
- Coverage: 13 states + DC
- Rating: 4.9/5 (1,400+ reviews)
Houwzer charges a 1% listing fee with a $2,500 to $3,000 minimum and a $10,000 maximum cap, making it especially attractive for homes above $1 million. It uses salaried, W-2 agents organized in specialized teams (listing specialists, transaction coordinators, closing managers) rather than the traditional solo-agent model.
The company operates in roughly 13 states plus DC and has closed 5,800+ transactions totaling over $2.49 billion in sales. Its parent company, Newfound, also owns Trelora (a similar 1% service).
The catch. The team-based model means you’ll work with multiple people throughout your transaction rather than a single dedicated agent. That works well for straightforward sales but can feel disjointed if complications arise. Coverage is limited to the mid-Atlantic, Southeast, Midwest, and parts of CO, TX, and AZ.
Best for: Sellers with homes above $500,000 who want genuine 1% savings with a structured team approach.
Not ideal for: Sellers who value a single point-of-contact relationship or live outside Houwzer’s coverage area.
4. Redfin: Decent savings, but weigh the trade-offs
- Listing fee: 1.5% (drops to 1% if you buy + sell with Redfin in 365 days)
- Coverage: 50 states
- Rating: 2.6/5 (1,400+ reviews)
Redfin (now "Redfin Powered by Rocket" after Rocket Companies’ $1.75 billion acquisition in July 2025) charges a 1.5% standard listing fee, dropping to 1% if you both buy and sell with Redfin within 365 days. In-house salaried agents handle all transactions.
The catch. Minimum fees vary dramatically by market, from about $2,000 in some areas up to $9,000 in San Francisco. And Redfin’s third-party reviews are notably weaker than competitors at 2.6/5 across 1,400+ reviews, with recurring complaints about agent responsiveness and the volume-driven model. Its app and website, however, rate 4.8/5 for home search and market data.
Best for: Sellers in high-priced markets who are also buying with Redfin and want the 1% bundle rate.
Not ideal for: Sellers who want hands-on agent attention or live in markets with high minimum fees.
5. SimpleShowing: Budget-friendly in select markets
- Listing fee: 1% ($3,500 to $5,000 minimum)
- Coverage: FL, GA, TX
- Rating: 4.9/5 (270+ reviews)
SimpleShowing charges a 1% listing fee with full-service representation. It’s a small, regional company covering Florida (Miami, Orlando, Tampa), Georgia (Atlanta), and Texas (Dallas).
The catch. Very limited coverage. With 270+ total reviews, it’s a much smaller operation than the other companies on this list. The $5,000 minimum on lower-priced homes pushes the effective rate above 2% on anything under $250,000. That can mean fewer agent options and less infrastructure for complex transactions.
Best for: Sellers in FL, GA, or TX metros with homes priced above $400,000 who want genuine 1% fees.
Not ideal for: Sellers outside these three states, or those with sub-$300,000 homes where the minimum fee pushes the effective rate higher than competitors’.
Our methodology: how we chose our top picks
A ranking of any kind is only as good as the criteria behind it. Here’s exactly how this list was put together so you can decide whether our weighting matches yours.
What we evaluated. We looked at 12 national and regional discount brokerages operating in the U.S. as of May 2026. Of those, five made the final list because they met three baseline thresholds: a published listing fee at or below 1.5%, full-service representation (MLS listing, photos, showings, negotiation, closing support), and at least 250 verified third-party reviews.
Four scoring categories. We graded each company across four equally weighted criteria.
- Actual listing fee and minimums. What you really pay, not the headline rate. A 1% fee with a $5,000 minimum is effectively 2.5% on a $200,000 home. We calculated effective rates at $200K, $400K, and $750K price points.
- Service scope. Full-service representation vs. limited support. We confirmed each company’s MLS listing, professional photography, showing coordination, negotiation support, and closing services either through direct outreach to the company’s offices or by reviewing the company’s published listing agreement.
- Agent quality and model. Whether agents are in-house and salaried (Houwzer, Redfin) or independent contractors (Clever, 1 Percent Lists), the company’s vetting standards, average agent experience level, and whether sellers can interview multiple agents before committing.
- Customer reviews. Aggregated from Trustpilot, Google, Better Business Bureau, and Zillow as of March 2026. We weighted volume and consistency. A 5.0 average across 50 reviews carries less weight than a 4.9 across 4,000.
Outreach and verification. Our team contacted each of the five companies above between February and May 2026 to confirm current pricing, coverage, minimums, and service inclusions.
Three findings from that outreach made it into the rankings: SimpleShowing’s $5,000 effective minimum on lower-priced homes (which the company doesn’t lead with on its homepage), Houwzer’s coverage limited to roughly 13 states + DC despite its national branding, and Redfin’s market-by-market minimum fee variance from $2,000 to $9,000.
Limitations and disclosures. Three things worth flagging.
First, we did not include companies that lacked enough verified third-party reviews to evaluate (REX shut down in 2022; smaller regional flat-fee MLS services are reviewed in our flat-fee MLS guide instead).
Second, Clever Real Estate is owned by the same company that publishes this article. We disclose that in the rankings section above and apply identical scoring criteria to Clever that we apply to competitors. Where competitors outperform Clever (Houwzer’s lower fee, 1 Percent Lists’ higher customer rating), we say so.
Third, we update this ranking quarterly. The most recent refresh was May 2026.
Why would a realtor work for just 1%?
| 💼 When 1% makes sense | ⚠️ When 1% can backfire |
|---|---|
| Hot seller’s market | Slow or overpriced listings |
| Luxury or high-value homes | Homes needing major repairs |
| Dual transactions (buy + sell) | Inexperienced or overextended agents |
| Referrals and reputation building | Limited marketing support |
It’s a volume play. An agent earning 1% on 40 transactions per year makes roughly the same gross income as one earning 3% on 13 transactions. Low-commission companies generate leads for agents, which reduces the agent’s marketing costs (often their biggest expense).
For salaried-agent models like Houwzer and Redfin, agents earn a base salary plus bonuses rather than pure commission, which removes the financial pressure of any single deal.
For referral platforms, agents at traditional brokerages accept a lower commission rate in exchange for a steady stream of qualified leads. The agent pays Clever a referral fee at closing.
When it makes sense for agents. Straightforward listings in active markets where homes sell quickly. A well-priced home in a good location requires less marketing effort, so the math works.
When it can backfire. Complex sales, slow markets, or overpriced homes that require significant agent time and marketing spend. If your home needs extensive staging, targeted advertising, or extended negotiation, a volume-focused agent may not invest the time a full-commission agent would.
David Baca, a realtor with Life Realty District in Henderson, NV, who runs a 30,000-contact database and a full-service team, puts it bluntly. “When your home sits on the market for 30 to 60 to 90 days, guess who’s paying the mortgage? The seller. Let’s say your mortgage is $2,400 or $2,500 and it’s been on the market for three months. That’s $7,500 the seller’s losing because you have inadequate representation.”[2]
On a $400,000 home, three months of holding cost can erase the entire $6,000 difference between a 1% listing fee and a 2.5% one. The lesson, Baca says, is to weigh the listing fee against the realistic days-on-market in your area, not just the headline rate.
What rate is actually right for your situation?
If your situation looks more like the right column above, defaulting to a true 1% agent could cost you. The tool below recommends a target listing fee for your specific home and timeline, defended by your state's actual commission data. About 60 seconds, and you'll know whether 1% is realistic for your file or whether you should aim slightly higher.
Key risks of working with a 1% realtor
Low-commission services can deliver excellent results, but go in with your eyes open about these potential trade-offs.
Reduced marketing investment
At 1%, agents earn less per transaction, which can mean fewer resources for professional photography, staging consultations, targeted digital advertising, and premium MLS enhancements. Ask specifically what marketing services are included and what costs extra.
Outsourcing and the “team” handoff
This one trips up the most sellers. The agent who pitches you may not be the one who actually handles your transaction.
Christina Rordam, a 21-year top-producing realtor with Florida Realty Investments in Orlando, has seen the pattern repeatedly.
“A lot of times, somebody’s offering a discounted rate and they sell 50, 100 plus homes. But in order to do that sort of volume, a lot of it is outsourced. Maybe it’s outsourced to a VA in another country. Maybe it’s outsourced to AI. Maybe you meet with one agent who’s the face of the team, and then you have a junior agent that just got their license six months ago that’s handling the negotiations of your contract.”
Her advice: ask the agent directly whether they will personally handle the listing or pass it off to someone else once the contract is signed.
Dual agency risk
Some discount brokerages encourage dual agency (representing both buyer and seller) to capture both sides of the commission. This is legal in most states but creates a conflict of interest, since one agent can’t fully advocate for both parties. Ask upfront whether the company practices dual agency and whether you can opt out.
Experience and specialization gaps
Not all discount agents have deep experience in your local market or property type. Ask about their recent transaction history in your area, average days on market for their listings, and list-to-sale price ratio.
How much can you actually save on 1% commission?
Compare a 1% listing fee to your state average and Clever
Move the home-value slider and pick your state. We pull listing-side commission averages from our own agent survey, then show what you would actually pay at three different rates, including Clever's flat 1.5% listing fee.
- Listing fee$13,950
- Buyer's agent fee (state avg, 2.55%)$13,950
- Listing fee$5,000
- Buyer's agent fee (state avg, 2.55%)$13,950
- Listing fee$7,500
- Buyer's agent fee (state avg, 2.55%)$13,950
The average listing agent commission nationwide is about 2.88% as of early 2026, according to a Clever Real Estate survey.[1] On a $400,000 home, that’s $11,320 in listing fees alone.
Drop that rate to 1% to 1.5%, and you’re looking at $4,000 to $6,000 instead. That’s a savings of roughly $5,000 to $7,000 on a single transaction. At the national median sale price of about $420,000 (as of Q4 2025), the math gets even more compelling for sellers with higher-priced homes.[3]
That said, these savings only matter if the agent actually sells your home effectively. A discounted fee means nothing if your home sits on the market, sells below its potential price, or gets passed off to someone you’ve never spoken to. We’ll come back to that calculation in the "key risks" section below.
How to choose a 1% commission realtor
| If you... | Consider... |
|---|---|
| Want the lowest possible listing fee | 1 Percent Lists or Houwzer (both 1%). |
| Want to compare multiple agents | Clever Real Estate. You’ll get matched with several agents to interview. |
| Have a home worth $750K+ | Houwzer. The $10,000 fee cap makes it the best value for high-end homes. |
| Are buying and selling simultaneously | Redfin. The 1% rate for buy+sell bundles can add up to significant total savings. |
| Want a single dedicated agent (not a team) | Clever or 1 Percent Lists. Both pair you with an individual full-service agent. |
| Value a proven, salaried team model | Houwzer or Redfin. Both employ agents directly on salary. |
Regardless of which company you choose, interview your agent before signing a listing agreement.
Rordam recommends asking five specific questions: “Why should I hire you? Can I speak with somebody to make sure it’s verifiable? Look at their reviews online. What does that agent bring to the table other than a lower commission? Do they have experience? Do they have skill? Do they have references? Will they be the person handling your transaction, or is that going to be outsourced to somebody who may or may not have the same level of skill?”
1. Look at pricing
With most 1% commission brokerages, whether you'll actually pay 1% depends on your home price. Pay close attention to minimum fees to ensure you're getting the advertised rate.
For example, if your agent has a $5,000 minimum fee (see SimpleShowing) and your house sells for $250,000, you'd essentially pay a 2% commission rate — not the 1% listing fee the company advertises.
You should also avoid discount companies that charge up-front fees. You may come across brokerages that advertise 1% listing fees but pad their bottom line by charging additional fees — often $300–500 — when they list your house for sale.
Most listing agents — traditional and discount alike — only get paid after you successfully sell your home. Paying your agent up front gives them less incentive to deliver stellar customer service, and you won't get that money back if you change your mind about selling or have a bad experience with your agent. None of the companies we recommend charge up-front fees.
2. Compare service models
Most home sellers should work with a discount real estate brokerage that offers a similar experience to selling with a conventional real estate agent.
Clever Real Estate is a great option for sellers because it pre-negotiates lower rates with traditional agents from established brokerages. The customer experience should be familiar to anyone who's ever sold a home with a traditional realtor from a brand like Berkshire Hathaway or Century 21.
Redfin and other discount brands offer a home selling process that's less familiar. These companies aim to make the process more efficient so agents can handle more customers at once. They usually do this by moving more of the process online and involving more team members in your sale. This non-traditional approach is typically best for people with desirable homes and straightforward selling situations.
Avoid companies that offset their low rates by providing fewer services and little or no in-person support. This approach increases the risk of costly mistakes like mispricing your home. The savings aren't worth the trade-offs — especially since other discount brands offer better service for the same price (or less).
» MORE: Discount vs. full-service realtors: What's the difference?
3. Consider brand and agent reputation
Look for established real estate brands with strong customer service ratings and plenty of reviews (both old and recent). Read customer reviews thoroughly to learn more about what other sellers liked — and disliked — about their experience.
If you decide to move forward with a particular company, make sure it lets you interview and choose your own agent.
At the end of the day, you'll sell your house with an individual agent — not a brand. You don't have to work with an agent just because they're from a good brand or offer a discounted listing fee. Interview a few agents so you can compare your options and find the right fit.
Alternatives to 1% realtors
Negotiate a lower rate
About 37% of recent sellers negotiated or attempted to negotiate their agent’s commission, according to a 2025 Redfin/Ipsos survey of 4,000 respondents.[4]
Aside from selling with a low-commission real estate brokerage, you can try to negotiate a lower commission with a traditional agent directly. This approach is more likely to succeed if you're selling a high-value home in a competitive market or agreeing to buy and sell through the same brokerage.
However, keep in mind that sellers usually have low success rates with negotiating.
Sell without a realtor
Another option is to bypass traditional realtor fees by using a flat fee MLS service to list your home.
While this can eliminate listing fees, keep in mind that homes sold through realtors typically sell for nearly $50,000 more on average than those sold by owners (FSBO).[5] This difference could outweigh any potential savings from avoiding commission.
Additionally, FSBO sales now account for just 5% of all transactions — the lowest level ever recorded — indicating that most people still prefer expert assistance when selling a home.[6]
Sell to a cash buyer
If your priority is to sell your house fast rather than maximize the sale price, consider options like a cash home buyer or an iBuyer. This option has become more common as mortgage rates have remained elevated and all-cash purchases have increased.[7]
These can facilitate a sale within one to two weeks. However, these companies typically won't pay as much for your home as you'd get on the open market, reflecting the trade-off between speed and price.
» COMPARE: Best companies that buy houses for cash
🏛️ NAR settlement and realtor commissions
The National Association of Realtors (NAR) has finalized a $418 million settlement regarding broker commission practices, following years of legal pressure to make the home-selling process more affordable and transparent.[8]
Several major changes are now in effect:
- New MLS rule. Since July 2024, agents can no longer advertise buyer’s agent compensation on the MLS. Instead, buyers and their agents must negotiate fees off-platform, similar to the upfront, transparent pricing offered by 1% commission realtors.
- Buyer's need written agreements. Agents representing buyers must sign written contracts outlining their services and fees. This rule increases clarity and helps buyers shop more confidently — much like sellers already do with low-commission listing agents.
- Some sellers may receive compensation. Sellers who used an MLS between 2015 and 2020 may qualify for compensation under the settlement terms.
Many expected the settlement to trigger a broad decline in commission rates. But early national data shows something different. As Clever co-founder Luke Babich explains, buyer agent commissions dipped briefly after the settlement but quickly rebounded.
“Commissions fell from their traditional highs around 2.6% down to about 2.5% in the first few months after the rule changes,” Babich says. “But that drop was short-lived. Instead of continuing downward, rates actually moved back up in early 2025.”
That on-the-ground experience matches what we heard from agents in active markets. Baca, the Las Vegas-area realtor, says buyer-agent compensation is still happening, even though the mechanics changed.
“Sellers are no longer expected to automatically cover buyers agent commissions, but they have the equity. That’s normally what’s going to pay.”
Rordam reports a similar pattern in Orlando. “About half of sellers are still offering something. If you call and ask, they’ll tell you. Half are not. But I haven’t had a sale since this has gone down where we didn’t agree to have the seller cover the compensation, at least most of it. It’s just become part of the offer.”
The Department of Justice has expressed concern that the settlement didn’t go far enough. In a December 2025 filing, AAG Abigail Slater noted that U.S. commission rates of 5% to 6% are 2 to 3 times higher than those in comparable developed economies.[9]
What this means for sellers: the settlement hasn’t produced the dramatic price drops some predicted, but it has made commission conversations more normal. You have more leverage to negotiate than you did two years ago, and services like the ones reviewed above continue to offer the most reliable path to lower fees.
» Sold a house? Visit the Real Estate Commission Litigation website to see if you qualify for the settlement.
What independent experts say about discount commissions
Stephen Brobeck, senior fellow at the Consumer Federation of America, has studied real estate commissions for over two decades. His research has found that commission rates in many U.S. cities show strikingly little variation. In 10 of 35 cities studied, at least 87% of sales had identical commission rates.[10] This uniformity, Brobeck argues, suggests that industry norms suppress price competition.
Academic research reinforces the point. A Cornell, MIT, and Wharton analysis of 653,475 listings found that 96.5% of Houston-area listings offered the exact same buyer-agent commission rate, suggesting the market for agent services is far from competitive.[11]
Researchers at the Federal Reserve Bank of Richmond found that the U.S. has roughly 26 times more agents per transaction than the UK, suggesting significant inefficiency in how agent labor is allocated.[12]
For consumers, the takeaway is that commission rates are more negotiable than most sellers realize, and companies offering 1% to 1.5% listing fees are proof that full-service representation doesn’t require a 2.5% to 3% fee.
Next step: Interview local agents
If you want to save money on commission fees, your first step should be to talk to a few local discount realtors. Compare rates, services, and experience to find a real estate agent who fits your needs and budget.
You can always interview agents without risk or obligation, so you have nothing to lose by shopping around until you find someone you're comfortable with.
Most full-service agents will also give you a listing presentation, which involves visiting your house and performing a free comparative market analysis to help you choose a competitive listing price for your home.
🛡️ Why you should trust us
This guide was built from three sources: hands-on real estate experience inside the Clever editorial team, primary research from independent academic and government economists, and direct interviews with two practicing top-producing realtors who work outside the Clever network.
Practicing realtors interviewed for this guide
Both realtors quoted in this article were interviewed in April 2026 specifically for this piece. Neither is affiliated with Clever Real Estate. Their feedback shaped the "Key risks" section, the holding-cost math under "Why would a realtor work for just 1%?", and the post-NAR-settlement reality check in the settlement section.
Christina Rordam, REALTOR (CSP, CNE, CDPE), Florida Realty Investments, Orlando, FL. Christina is a 21-year top-producing Orlando agent who has been licensed since 2005. Her family has been selling Florida real estate for roughly 40 years and operated a flat-fee brokerage in Florida in the late 1980s and early 1990s, giving her an unusually long view of how discount-commission models actually perform in practice. She holds three industry designations: Certified Sales Professional (CSP), Certified Negotiation Expert (CNE), and Certified Distressed Property Expert (CDPE). Her quotes in this article focus on the volume model behind discount brokerages, the outsourcing risk most sellers don’t see coming, and what real-world buyer-agent compensation looks like in Orlando after the NAR settlement.
David Baca, REALTOR, Life Realty District, Henderson, NV (Las Vegas metro). David runs a full-service team and a 30,000-contact database in the Las Vegas metro, with a real estate background he describes as "in my blood": his parents have been in the business for more than 30 years. His quotes in this article focus on the holding-cost math sellers miss when they comparison-shop on listing fee alone (his $7,500 three-month example anchors the Why-1% section), the gap between how 1% agents and full-service agents prepare a property for market, and his on-the-ground take that buyer-agent compensation has changed less than the headlines suggested after the NAR settlement.
The Clever editorial team
Steve Nicastro (author). Steve is a former licensed real estate agent in Charleston, SC (2019 to 2022) with $6M in closed transactions and personal experience buying and selling 30+ homes as an agent, investor, and homeowner. He’s Managing Editor at Clever Real Estate and was previously a personal finance writer at NerdWallet for 6+ years, with work published in USA Today, the Associated Press, U.S. News, and the New York Times.
Ben Mizes (reviewer). This article was reviewed for factual accuracy by Ben Mizes, Co-Founder and President of Clever Real Estate. Ben is a licensed agent and active investor with 22 rental units in St. Louis. Under his leadership, Clever has helped customers save over $220 million in commission fees and earned a 4.9-star average rating across 4,400+ verified reviews.
Katy Baker (editor). Katy is an experienced real estate writer focusing on non-traditional home sales and commission trends. Her work has been published on MSN, MediaFeed, Real Estate Witch, and Home Bay.
FAQ
Is a 1% commission realtor worth it?
For most sellers, yes. A 1% listing fee saves you roughly $6,000 to $8,000 on a $400,000 home compared to the average listing rate of about 2.83% (as of early 2026).[1] The key is confirming that your agent offers full-service representation (MLS listing, professional photos, showing coordination, and negotiation support) and that the agent who pitches you is the one who will actually handle your transaction. If the service scope matches a traditional agent’s, the savings are straightforward.
What’s the difference between 1% and 1.5% listing fee services?
On a $400,000 home, a 1% listing fee costs $4,000 and a 1.5% fee costs $6,000, a $2,000 difference. Companies like 1 Percent Lists and Houwzer charge a true 1%. Clever Real Estate and Redfin charge 1.5% (though Redfin drops to 1% if you buy and sell together). Both tiers offer full-service representation, so the decision largely comes down to coverage, agent quality, and whether you prefer to interview multiple agents before signing.
What is a 1% commission realtor?
A 1% commission realtor is a real estate agent who lists and sells your home for a fee of just 1-1.5% of the final sale price (compared to the 2.5–3% most realtors charge). This reduced rate can yield significant savings. On a $500,000 home, reducing your listing fee to 1.5% (instead of the nationwide average of 2.88%) would save you approximately $6,000!
However, you must carefully evaluate the services offered by agents or companies who promote a 1% listing fee. Some may compromise on essential services, support, or expertise to offset the lower fees, which could ultimately result in higher costs in the long run.
For example, choosing a less experienced and overextended 1% commission agent could lead to poor pricing and negotiation strategies. If your home sells for $50,000 less than it might have with a more seasoned agent, the additional loss would far exceed the savings from reduced realtor fees.
How can 1% commission agents charge such low rates?
Most 1% commission agents achieve savings by modifying the traditional brokerage model. For instance, Clever Partner Agents offer full service at a lower commission because Clever provides them with more business at no upfront cost. Other low-commission brokers, like Redfin, utilize technology and a team-based service model, allowing agents to manage more clients efficiently.
Realtors might also accept a 1% commission in hot seller's markets, for high-value properties, or when there are prospects for referrals and dual transactions. However, this model may not be suitable for homes requiring extensive repairs, those priced above market value, or properties in less desirable locations.
How much can you save with a 1% commission realtor?
A 1% or 1.5% commission realtor can save you around $5,000 on a median-priced home sale. For example, on a $360,700 house, the total commission would be about $13,200 with a 1.5% agent compared to $19,800 with a traditional agent charging the average 2.83% listing fee and 2.66% buyer's agent fee (the nationwide averages). These savings come from the reduced listing fee, although you may still need to offer a competitive buyer's agent fee. View our detailed section on how much can you save with a 1% realtor for more information.
Do I still need to pay the buyer’s agent?
Since the NAR settlement took effect in August 2024, seller-funded buyer’s agent compensation is no longer advertised on the MLS. However, most sellers still offer it (typically 2.5% to 2.8%) to attract the widest pool of buyers. You’re not legally required to pay the buyer’s agent, but declining to offer compensation may reduce buyer interest, especially in competitive markets. This is a conversation to have with your listing agent based on your local market conditions.
