When selling a home, a 1% realtor commission can save you a lot of money. But it's important to understand how different real estate brands create savings and what kind of service, expertise, and value you'll get for your money.
This guide breaks down the top brands offering a 1% realtor commission (or close to it).
Where to find the best 1 percent commission realtor near you
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Customer Rating
Editor's Take
Pros & cons
Overview
Clever Real Estate is the best option for most sellers looking for an agent. The company matches you with multiple experienced, full-service agents so you can find the right fit, and it offers a low 1.5% listing fee no matter which agent you choose.
Listing Fee
Customer Rating
Editor's Take
Pros & cons
Overview
Redfin is a reputable discount real estate brokerage that offers significant savings, particularly if you buy and sell with the brokerage. But watch out for high minimum fees, which vary by market and can be high in some areas. Redfin's agents also work with a lot of clients, and they don’t always have time to provide as much hands-on service as you may need.
Read the full Redfin review.
Listing Fee
Customer Rating
Editor's take
Pros & cons
Overview
If you're looking to save money on realtor fees, Houwzer is a great option. Its 1% listing fee could save you thousands compared to the 3% that traditional realtors charge. Agents are required to demonstrate expertise in their local market and undergo additional training to sign with the brand. That said, Houwzer's agent network is small (51-200 realtors total), so you may not find an agent close enough to sell your home.
Read the full Houwzer review.
Listing Fee
Customer Rating
Editor's take
Pros & cons
At a Glance
1 Percent Lists offers a solid combination of savings and full service. If you're located in one of its service areas, read customer reviews and check Zillow transaction data to ensure you don't end up with an inexperienced real estate agent.
Read the full 1 Percent Lists review.
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Customer Rating
Editor's take
Pros & cons
Overview
SimpleShowing offers significant savings, especially for sellers whose properties sell for more than $500,000. Its agents and customer service are also excellent. However, high minimum fees mean properties worth under $500,000 won’t enjoy maximum savings. Plus, you’ll get limited ability to choose your real estate agent thanks to the company’s small team size.
Read the full SimpleShowing review.
📍 Evaluating local discount brokerages
In addition to the nationwide and regional brokerages above, you can sometimes find local companies that advertise 1% listing fees. They’re more common in competitive real estate markets with higher median home prices.
When comparing discount realtors near you, watch out for service trade-offs. Some companies advertising 1% fees may not provide the complete range of services you’d get with a traditional real estate agent — from listing your house on the MLS for the right price to completing negotiations — so be sure to check that the company is actually a full-service brokerage.
Misleading pricing and up-front fees are other potential red flags. Some local discount real estate agents advertise 1% listing fees, but they charge an additional up-front fee when they list your home for sale.
» Want to find a discount real estate broker near you? Fill out this short survey to get matched with top agents in your area. It's free, and there's no obligation to move forward.
What is a 1% commission realtor?
A 1% commission realtor is a real estate agent who lists and sells your home for 1% of the final sale price (compared to the 2.5–3% most realtors charge).
When selling something as valuable as a house, even small rate reductions can net you huge savings. On a $500,000 home, getting your listing fee down to 1.5% (instead of the typical 3%) would save you $7,500!
To find the best value, compare several realtors and brokers that advertise around a 1% listing fee. Some agents or companies skimp on key services, support, and experience to make up for the discounted listing fee, and you could lose a lot more than you save.
Quick example: You choose a 1% commission real estate agent, but they're less experienced and overextended. They incorrectly price your home and phone in the negotiations. You end up selling for $50,000 less than another slightly more expensive — but also more experienced — agent could've sold for. Chances are you're losing a lot more on the final sale price than you saved in realtor fees.
Should you use a 1% commission realtor?
Every home seller should consider agents and brands offering lower commission rates (who wouldn't want to save money?) But it's important to understand the ins and outs of various fee structures, how different brands create those savings, and what kind of service, expertise, and value you'll get for your money.
Getting a commission from 3% to 1% can net you massive real estate commission savings ... on paper. But if the agent or company skimps on key services, support, and experience to make up for the discounted rate, you could lose a lot more than you save.
How to choose a 1% commission realtor
Choosing the right 1% commission realtor means identifying which local discount brokerages offer great dollar-for-dollar value, then interviewing agents to find the best fit for you.
The main points to consider when comparing discount real estate brokers include pricing, service models, and brand reputation.
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.
How does a 1% realtor commission work?
| Expense | 1% realtor commission | Traditional realtor commission |
|---|---|---|
| Listing fee | 1% | 2.5–3% |
| Buyer's agent fee | 2.5–3% | 2.5–3% |
| Total commission rate | 3.5–4% | 5–6% |
| Total commission on a $500,000 house | $17,500–20,000 | $25,000–30,000 |
| Savings | $7,500–10,000 | $0 |
In a traditional real estate transaction, there are two agents. The listing agent represents the seller, and the buyer's agent represents the buyer. Currently, it's industry standard for the seller to pay both of the agents, though recent legal developments could mean real estate commission changes are coming in 2024.
In an ordinary real estate transaction, sellers pay an average of 5.49% in total real estate commissions. This amount is divided between the listing agent (2.83%) and the buyer's agent (2.66%)
When you work with a 1% commission real estate company, your total real estate commission fee drops to 3.5–4%. On a $350,000 home sale, you'd save around $7,000 in realtor fees by working with a 1% commission realtor!
These savings usually come because the listing agent reduces their fee. You'll still need to offer a competitive buyer's agent fee — anywhere from 1.00% to 4.00%, depending on your market.
Can I offer the buyer's agent a 1% real estate commission?
As a seller, you can technically offer whatever rate you'd like as a buyer's agent commission. But it's risky to cheap out on this rate.
The buyer's agent fee incentivizes agents to show your home to their clients. If you offer a less-than-competitive buyer's agent commission, agents may not be as likely to show your home — and you may miss out on potential buyers and bidding wars.
Why do some agents charge lower commissions?
In general, real estate agents who lower their fees do so to attract more clients.
When there's a hot seller's market, there's more competition over listings, and more realtors tend to drop their commissions. Realtors may also lower their fees for repeat clients or those who are selling at a higher price point, since a realtor's commission rises with a home's value.
In other cases, agents may work with a service (like Clever or Ideal Agent) that negotiates lower rates in exchange for sending them a steady stream of business.
Other ways to get a 1% listing fee
Aside from selling with a low commission real estate brokerage, you can try to negotiate a lower commission with your agent directly. This may work if you're selling an expensive home in a hot market or are willing to buy and sell with the same brokerage. Other than that, most sellers will have a hard time talking an agent down from their standard rate.
You can also avoid listing fees altogether by selling your house without a realtor and using a flat fee MLS company to list your home for potential buyers. However, most FSBO sellers end up listing with an agent, and research shows that people who sell with a realtor sell for nearly $50,000 more on average than those who don't — outweighing any potential commission savings.[1]
If you're less concerned about realtor fees and just need to sell your house fast, a cash home buyer or an iBuyer can get you to the closing table in as little as 1-2 weeks. But these companies typically won't pay as much for your home as you'd get on the open market.
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 any 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.
Companies like Clever make it easier than ever to find a top discount real estate broker near you. Clever matches you with traditional real estate agents from trusted brokerages like Keller Williams and RE/MAX, then negotiates discounted listing fees for you. Interview as many agents as you'd like until you find the right fit, or walk away at any time with zero obligation.
Try our free, no-obligation agent matching service! Clever will get you proposals from the top agents in your area. Compare options, choose the best fit, save thousands with a pre-negotiated 1.5% listing fee.
FAQ about 1% commission realtors
What is a 1% commission realtor?
A 1% commission realtor is an agent or brokerage that sells your house for 1% of the final sale price. In other words, if your home sells for $400,000, you would pay the seller's agent a $4,000 commission (this doesn't include the buyer's agent fee).
How can 1% commission agents charge such low rates?
Most 1% commission agents create savings by altering the traditional brokerage model. For example, Clever partner agents are willing to provide full service for a lower commission because Clever sends them more business at no up-front cost. Other low commission brokers, like Redfin, create savings by using technology and a team-based service model so agents can handle more customers.
How much can you save with a 1% commission realtor?
Working with a 1% commission realtor could mean saving thousands of dollars on your home sale. For example, if you sell your home for $500,000 at the typical 3% commission rate, you will pay $15,000 in commission fees alone. If you go with a 1% realtor instead, you’ll pay $5,000 — saving $10,000 on commission.
What are the top 1% commission real estate brands?
Clever Real Estate and Redfin are the best low commission real estate companies for most sellers trying to get close to a 1% listing commission. Compared to other discount real estate brokerages, Clever and Redfin offer the top overall combination of savings and service quality. Plus, they're available throughout the U.S., so you can save on commission no matter where you're selling.
Are 1% commission realtors worth it?
Yes, 1% commission realtors are a great option for home sellers looking to save money. We recommend working with a discount brand that offers the same level of service as a traditional brokerage. This gives you the best chance of finding a buyer quickly and selling your home for top dollar. See the full list of the top 1% commission companies.
What percentage do most realtors charge?
Traditionally, most realtors charge 2.5–3% of the home's sale price. Sellers typically pay the listing agent's and the buyer's agent commission — so the total rate is usually 5–6%. Some realtors, like a 1 percent commission realtor, charge a lower listing fee. Learn more about the best 1 percent commission realtors near you.
Realtor commission changes may be coming
Sellers typically pay commissions for both their agent and the buyer's agent. However, recent developments in legal cases against the National Association of Realtors (NAR) and major realty companies could lead to significant changes.
- In November 2023, a lawsuit accused NAR, HomeServices of America, and Keller Williams Realty of unfairly burdening sellers with high commissions, including those for the buyer's agents.
- In December 2023, NAR, Keller Williams, and Berkshire Hathaway requested to dismiss a new class-action lawsuit accusing them of artificially inflating home sellers' commission fees, seeking over $13 billion in damages.
The defendants deny the claims, attributing their practices to market forces and state laws. Re/Max and Anywhere Real Estate have settled similar claims, while a key hearing in the Illinois case is set for January 31.
We're monitoring these cases for any impact on real estate commission rates and will keep you updated on how they might affect sellers and buyers.
» READ MORE: NAR Lawsuit: Americans' Views and Misconceptions on Agent Commissions | Backgrounder Q&A: National Association of REALTORS
