A 1% commission realtor is an agent or discount broker who lists your home for sale at a significantly reduced commission, often around 1%. This can save thousands of dollars compared to typical commission rates, which average 2.74% for the listing agent.[1]
Considering the financial impact of selling a home, these savings are significant. Our analysis indicates that since 2022, homeowners have spent a median of $54,616 on the sale of their home.[2] This total includes an average listing fee of $11,136, excluding the buyer's agent commission and other associated costs.
But chasing the cheapest agent isn't always the best idea, as the quality of service can vary significantly between discount brokers and individual agents. A lower commission rate doesn't always guarantee the same expertise, support, and resources that higher-priced agents might offer.
To help you make an informed decision, we've ranked the top 1% commission realtors for 2024. Our evaluation considers various factors, including cost, quality of service, and overall value.
This article was edited by a former realtor who has sold homes at a discounted commission rate (as low as 1.5-2%). Their expertise ensures you receive the most relevant information, context, and real-world experience to help you make informed decisions about using 1% commission realtors.
⚡ Ready to save on realtor commission? Find top-producing agents in your zip code who work for a 1.5% listing fee.
Best 1% Commission Realtors of 2024
How we chose our top picks
We considered various factors beyond just the listing fee. While a lower fee can significantly reduce home sale costs, other aspects such as service quality, agent availability, and overall company reputation are equally important.
1. Service quality. The level of service provided by discount realtors can differ significantly. Companies such as Clever Real Estate and 1 Percent Lists are highly rated because they offer full-service experiences. Despite their lower fees, these companies provide comprehensive support, comparable to what traditional realtors provide.
On the other hand, while offering low fees, companies like SimpleShowing and Houwzer may provide more limited services or less personalized attention. Their smaller networks of agents may also affect the effectiveness of your transaction.
2. Agent expertise and availability. Your agent must have the necessary local market knowledge and be readily available to handle your sale. Clever is rated highly in this category because its large agent network offers great selection compared to similar services.
Meanwhile, Houwzer's agents undergo rigorous training and must demonstrate local market expertise, but their smaller network might limit your options depending on your location.
3. Company reputation and reviews. Reviews and ratings are essential for gauging the experiences of past clients. Companies like Clever Real Estate and 1 Percent Lists, which boast high ratings across numerous reviews, reflect a consistent satisfaction level among sellers, suggesting that you might enjoy a similar positive experience.
However, companies with fewer reviews or lower ratings may not provide as much reliability, indicating potential variability in the quality of service and customer satisfaction.
Listing Fee
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
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.
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
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.
Find Discount Brokers Near You
Sometimes, your best option is to find a local agent who offers a 1% listing fee or similar discounted rates.
If you're looking for a 1% real estate agent in your local market, we've compiled comprehensive guides for all 50 states and Washington, DC. Use the table below to navigate to your state and find the perfect agent.
📍 Evaluating local discount brokerages
Sometimes local companies advertise 1% listing fees, especially 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.
How much can I save with a 1% agent?
| Expense | 1.5% realtor commission | Traditional realtor commission |
|---|---|---|
| Listing fee | 1.5% | 2.74% |
| Buyer's agent fee | 2.58% | 2.58% |
| Total commission rate | 4.16% | 5.32% |
| Total commission on a $361,282 house | $12,900 | $19,200 |
| Savings | $4,800 | $0 |
The table below illustrates the potential costs of selling a median-priced home in the U.S. $361,282 using a discount broker with a 1.5% commission rate compared to a traditional realtor who charges the national average rate of 2.74%.
In an ordinary real estate transaction, sellers pay an average of 5.32% in total real estate commissions. This amount is divided between the listing agent (2.74%) and the buyer's agent (2.58%).
When you work with a 1% or 1.5% commission real estate company, your total real estate commission fee drops to just over 4%. You'd save around $5,000 in realtor fees on a median-priced home sale.
These savings usually come because the listing agent reduces their fee. You may still need to offer a competitive buyer's agent fee — anywhere from 1.00% to 4.00%, averaging 2.58% nationwide - depending on your market.
🏛️ NAR settlement and realtor commissions
The future of realtor commissions has evolved. The National Association of Realtors (NAR) has settled litigation over broker commission practices, agreeing to pay $418 million. To be paid over four years, this settlement addresses concerns that high commissions have financially burdened sellers.
Key changes under the settlement include:
- New MLS rule. Starting mid-July 2024, offers of broker compensation cannot be listed on the MLS, promoting off-MLS negotiation, similar to the transparent fee structures of 1% commission realtors.
- Written agreements. NAR will require MLS participants working with buyers to enter written agreements outlining services and fees, enhancing transparency—a core value of 1% commission realtors.
- Financial relief for sellers. Eligible sellers may qualify for settlement payments, providing additional financial benefits.
NAR denied any wrongdoing but agreed to the settlement to avoid prolonged litigation. This agreement aims to maintain consumer choice, support the real estate industry, and protect property ownership rights.
These changes further validate the advantages of using 1% commission realtors, ensuring sellers can save money while receiving full service.
» Sold a house? Visit the Real Estate Commission Litigation website to see if you qualify for the settlement.
Why would a realtor work for just 1%?
As a former real estate agent, I know that accepting a 1% commission can be beneficial in some cases, but it might not be the best choice in others. Here are some scenarios where I believe it makes sense for a listing agent to work for a lower commission.
- Hot seller's market. Properties will likely sell quickly in markets with high demand but low inventory. A fast sale means a quick paycheck for the agent, even at a reduced commission.
- High sale price home. Selling high-value properties like luxury homes can be lucrative even at a 1% commission. For example, a 1% commission on a $1 million sale is a $10,000 payout.
- Referral opportunities. Referrals are crucial for realtors. In 2023, 39% of sellers found their agents through recommendations from friends or family.[3] Happy clients are more likely to refer their agents, which could lead to more transactions or even higher rates in the future.
- Dual transactions. Suppose the seller is looking to purchase another home. In that case, agents might also handle the buying side of the transaction, effectively doubling their potential earnings while earning a higher rate on the purchase.
- Reputation building. Positive experiences and good reviews can significantly benefit an agent’s long-term business and reputation.
Alternatively, a 1% commission may not benefit properties with more challenges, such as homes requiring extensive repairs, those priced above market value with homeowners who won't budge on the price, or those located in less desirable areas.
Personally, I would be more cautious about accepting a 1% commission listing if I anticipated that the home might take three to six months to sell, or possibly not sell at all, due to these issues.
Key risks of working with a 1% realtor
When considering a 1% realtor, you must understand the potential drawbacks.
Service limitations. A 1% commission model often means the realtor may offer limited services. For instance, they might only list the property on the MLS and handle basic marketing, leaving sellers to manage showings, negotiations, and paperwork independently.
Although the upfront cost is lower, the need to handle additional tasks or pay separately for them can complicate the sale process and increase overall costs. That's why it's key to use a full-service realtor instead.
Experience and quality. Realtors charging lower fees may not always provide the same expertise or support as those working for higher commissions. The quality of service can greatly depend on the individual agent's experience and commitment, which often varies.
Potential for overextended agents. 1% commission realtors might take on more clients to compensate for lower earnings per transaction. This can result in less personalized attention and potentially slower response times, negatively impacting your sale.
Dual agency risk. There’s also a risk that a 1% commission realtor might pursue dual agency—representing both the buyer and the seller. While this could increase their earnings, it can create conflicts of interest, compromising the agent’s ability to advocate fully for your interests.
Maximize value with a discount broker
We suggest a full-service discount broker for a thorough, dedicated service throughout your home-selling journey. These brokers assist in setting the right price, quickly securing a buyer, and negotiating the best sale price, all at a reduced commission rate.
For example, Clever negotiates a low 1.5% listing fee with top agents from renowned brokerages like Keller Williams and RE/MAX. If you sell a $500,000 home through Clever, you could save approximately $6,000, thanks to lower commission rates – while still receiving expert advice and big savings.
⚡Compare all the vetted realtors in your zip code who work for just a 1.5% listing feeHow 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.
Alternatives to 1% realtors
Negotiate a lower rate
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. One industry study found that
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).[1] This difference could outweigh any potential savings from avoiding commission.
Sell to a cash buyer
If your priority is to sell your house fast rather than maximize sale price, consider options like a cash home buyer or an iBuyer. These can facilitate a sale within 1-2 weeks. But 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.
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.
Companies like Clever make finding a top discount real estate broker near you easier than ever. Clever matches you with traditional real estate agents from trusted brokerages like Keller Williams and RE/MAX, then negotiates discounted listing fees. 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
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 net you huge savings. On a $500,000 home, reducing your listing fee to 1.5% (instead of the nationwide average of 2.74%) 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 cost you more 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.