A 1% commission realtor works for a 1% real estate commission (or close to it). That’s quite a bit less than traditional realtor commissions, which are closer to 2.5-3%. A seller could save as much as $10,000 on selling a $500,000 home by using a 1% realtor.
While the financial benefits may seem great, 1% commission realtors may not be the right choice for every seller.
- Who it's best for: Sellers looking for a bargain in realtor fees, who are comfortable taking a more hands-on approach to the selling process, or who own a home in a high-demand area. In such scenarios, the seller can capitalize on market conditions and pay less in commissions. Ready to save big on commission? Answer a few simple questions to get matched with top-rated local agents who work for a 1.5% listing fee!
- Who it's wrong for: Properties that may be difficult to sell—such as those in less desirable locations, needing significant repairs, or with unique features—might require the comprehensive services that traditional agents provide. These properties benefit from extensive marketing efforts and the expert negotiation skills of experienced realtors.
Sellers who prefer a hassle-free, full-service sales experience may find that the 1% commission model falls short of their needs. Continue reading to discover more about 1% realtors and if they're a good fit for you.
What is a 1% commission realtor?
A 1% commission realtor refers to a commission structure in which the listing agent receives 1% (or close to it) of the house's sale price as payment. Examples of popular 1% commission realtor services include Clever Real Estate, Redfin, and UpNest.
Most real estate agents work solely on commission. When a home sells, the agents get a percentage of the sale price as a service fee. This fee is paid by the seller at closing and varies, but typically averages 5–6%, with each agent getting 2.5–3% commission.
With a 1% commission, the seller’s agent sets their commission at roughly 1%, substantially lower than the typical 2.5–3%. This also means you don't have to personally try to negotiate commissions lower with that agent, since the 1% rate is already pre-determined.
However, it’s worth noting the buyer’s agent usually still gets a traditional amount, so the total commission might still be around 3.5-4% (1% for the seller’s agent and 2.5-3% for the buyer’s agent).
Some 1% agents charge slightly more than 1%, a common fee being 1.5%. However, they're typically still considered low commission realtors, or "1% agents."
How much can you save? $500,000 house sale example
Fees | 1% commission | Traditional commission |
---|---|---|
Listing fee | 1% | 3% |
Buyer's agent fee | 3% | 3% |
Total fees | 4% | 6% |
Total commission ($) | $20,000 | $30,000 |
Savings can be pretty substantial when using a 1% realtor compared to a traditional fee structure. You'll see in the above table that you'll pay an estimated 4% total commission if you choose a 1% realtor to sell your home; that figure jumps to a 6% total commission when using a traditional agent.
In this example, you’d save $10,000 in fees by using a 1% commission realtor—pretty substantial. This is obviously very simplified, but it gives you an idea of the potential savings here.
Differences between 1% realtors and traditional agents
Factor | 1% realtors | Traditional agents |
---|---|---|
Commission rate | 1-1.5% | 2.5-3% |
Service level | Might be limited | Comprehensive |
Marketing | Basic (MLS listing, photos) | Advanced (drone photos, 3d tours, open houses, etc.) |
Paperwork support | Less likely to offer | Often provided |
Agent experience | May include less experienced agents | Ranges |
The biggest difference between these two options is the commission rate, with 1% realtors charging a 1-1.5% rate, compared to the usual 2.5-3%. However, the business models and services provided can vary significantly.
Agents charging 1% may offer more limited services, including basic MLS listings and limited photography, without support for paperwork or negotiations. Some agents in this category may be less experienced and accept clients primarily to grow their businesses.
It's also worth considering that agents working for a lower commission rate may be incentivized to close deals more quickly, potentially prioritizing speed over securing the best sales price. Typically, these agents may not want to spend much time on a property that yields minimal net commission.
However, the agent's experience level and quality also depend heavily on the company and agent. For example, Clever Real Estate offers full-service real estate assistance at this lower commission rate. This means you can enjoy the same benefits as you would with a top-tier realtor but for about half the cost.
Traditional realtors usually charge a commission rate of 2.5-3% and provide a wide array of services. These services often include advanced marketing techniques such as drone photography and 3D video tours, along with hosting open houses, and comprehensive assistance with paperwork and negotiations with buyers.
Key tip: Service quality can vary widely among both 1% and traditional real estate agents, and not all may offer the full range of services described. It's important to thoroughly research and carefully select realtors to ensure you find one that meets your needs.
For this reason, we recommend starting with Clever Real Estate, which connects you with top-rated realtors in your area. You receive all the services of a traditional realtor at just a fraction of the cost.
Why would an agent work for just 1% commission?
Accepting a 1% commission as a real estate agent may seem like a bad deal, but it can benefit the agent in certain situations:
- In a hot seller's market. In areas of the country with high demand for homes and few homes available, properties tend to sell quickly – that means a fast paycheck for the agent. Some agents are okay with taking a smaller paycheck if they know the money will come to them more quickly.
- High-priced, or luxury home listings. Selling expensive properties can still be profitable with a 1% commission. For example, selling a $2 million home at a 1% commission brings in $20,000. Even after accounting for brokerage splits and listing expenses like photography, the agent should still earn a nice profit.
- For the referral potential. Referrals are important for realtors, plain and simple. Happy clients who find their agent through a friend or family will likely pass on the good word, potentially bringing more business. Some agents may be willing to earn a smaller paycheck in anticipation of new business in the future.
- For positive reviews. Strong customer reviews and successful sales help build an agent's reputation, which is good for their long-term career.
- For multiple transactions. Sometimes an agent might handle both the sale of the current home and the purchase of a new one for the same client. This can double their commission earnings. So, they may be willing to take on a much lower listing commission since they'll also be earning a buyer's agent commission.
However, a 1% commission might not benefit hard-to-sell properties, such as homes needing major repairs, overpriced properties, or those in less desirable locations.
Best 1% commission realtors of 2025
Choosing the right realtor can significantly impact your home-selling experience and the money you save. Here’s a comparison of our top picks for low commission realtors offering 1% commission or close to it:
1. Clever Real Estate
Commission rate: 1.5%, $3,000 minimum
Availability: Nationwide
What Clever offers: Clever aims to offer lower commission rates without sacrificing service or customer experience. You start with a short quiz, which helps match you with a group of vetted agents in your market. You can then choose the best fit from that group to sell your house.
What actual customers are saying online: Reviews for Clever Real Estate are overwhelmingly positive, with users praising the quality of service and the agents' experience. A few customers complain about poor service or rude agents, but they’re a very small minority.[1]
Who Clever is best for: Clever is a great choice for home sellers looking to pay a lower listing fee without sacrificing quality.
✍️ Editor’s take: Clever Real Estate is the best choice for most home sellers. You'll pay a low 1.5% listing fee in exchange for full service from conventional realtors from name-brand brokerages like Keller Williams and RE/MAX. Get your free agent matches today!
2. Redfin
Commission rate: 1.5%. Sellers who also buy a home through Redfin can get a further 0.5% reduction to bring the listing fee down to 1%. Minimum fees apply and vary by market, from as little as $2,000 to as much as $9,000 in San Francisco. A full list of minimum fees can be found here.
Availability: Nationwide.
What Redfin offers: Redfin is a discount brokerage with a base fee of 1.5%, with minimum fees that vary by market (more expensive markets generally have higher minimum fees). You can also purchase a home through Redfin, and customers who both sell and buy with the company can save an extra 0.5% on their listing fee, bringing it down to 1%. The company also offers Redfin Premier, a service for buying and selling luxury homes.
What actual customers are saying online: Reviews of Redfin are somewhat mixed. Some customers have had an excellent experience, like Robert Iles, from Toluca Lake, CA, who said: "Redfin provided excellent service and achieved a higher sale price than expected. The entire process was smooth and easy to navigate, resulting in a sale price well above my initial hopes. Highly recommend for a hassle-free selling experience."
Others have felt that while the listing process was easy, the rest of the service could have been better. Kevin MacFarlane, of Seattle, WA, said: "Listing the unit with Redfin was easy, and their lower-than-standard commission saved me money. However, there were some delays in communication, and the refinishing work arranged through Redfin was not satisfactory. Overall, the listing process was convenient, but there were a few areas for improvement."
Who Redfin is best for: Redfin is ideal for customers who want to sell their homes and buy new ones through the platform. However, check the minimum fee in your market first, as it can be quite high.
» MORE: Clever vs. Redfin breakdown
3. Prevu
Commission rate: 1.5%, with varying minimum fees. The minimum fees aren't shared publicly, unfortunately.
Availability: Prevu is licensed to operate in 13 states.
What Prevu offers: Prevu offers both home selling and home buying services. Sellers pay a discounted commission rate of 1.5% (though minimum fees do apply). Buyers can take advantage of Prevu’s Smart Buyer rebate program. These rebates take the form of a check issued after closing. The company claims buyers get back an average of $25,000.
What actual customers are saying online: Prevu has outstanding overall reviews. Customers praise the quality of agents and the Smart Buyer rebate program, and describe the process of using Prevu as "quick and smooth."
That said, some customers note that the service is better for those who don’t mind (or even prefer) having less one-on-one agent interaction.
Who Prevu is best for: Prevu is a choice for home buyers who prefer a more hands-on or independent approach. However, you’ll have to be in one of its relatively small number of markets to take advantage of it.
4. Houwzer
Commission rate: Houwzer charges a 1% listing fee, with a minimum fee of $2,500.[2]
Availability: Houwzer is available in 7 markets.
What Houwzer offers: Houwzer does both home sales and purchases and claims to provide "full-service realty for thousands less."[3] The company also offers a rebate of up to half the buyer’s commission when you purchase a home.
What actual customers are saying online: Houwzer has largely positive reviews online, with many customers saying they had a great experience with the company. Most negative complaints center on the company’s business model and how it impacts service—in other words, some customers felt Houwzer agents were incentivized to sell homes quickly, regardless of price.[4]
Who Houwzer is best for: Thanks to its low minimum fee, Houwzer could be a good choice for sellers of lower-valued homes.
» MORE: Houwzer vs. Redfin
5. SimpleShowing
Commission rate: 1%, with a $5,000 minimum fee.
Availability: SimpleShowing is only licensed in Florida, Georgia, and Texas.
What SimpleShowing offers: SimpleShowing offers both selling and buying services. Sellers can use a 1% commission rate (albeit with a $5,000 minimum), while buyers get $5,000 or more towards closing costs.
What actual customers say online: SimpleShowing is a smaller broker with relatively few online reviews. That said, what is there is very positive, emphasizing the professionalism of the realtors and the quality of service received (despite the discounted listing fee).[5]
Who SimpleShowing is best for: SimpleShowing is best for sellers with homes worth over $500,000—these sellers can take full advantage of the 1% listing fee.
How to choose a 1% realtor
1. Compare the costs
The costs of using a 1% realtor are actually less straightforward than you might think. There are several things to keep in mind:
While the listing agent’s fees might be 1%, they’re often a bit higher—closer to 1.5%. It’s just easier (and, frankly, sounds better) to refer to them as “1% realtors.”
Many 1% realtors have a minimum fee that, depending on the price of your home, may come out well above 1%.
Remember that the “1%” in “1% realtor” refers to the listing fee. However, sellers often pay the buyer’s agent fees, which could also increase the total agent fees to 3–4%.
Some (though not all!) 1% realtors charge additional fees for services like staging a home. These can add up if you're not careful.
Ultimately, this means that you should compare costs between different brokers before committing and confirm all costs so there are no surprises.
2. Compare service levels
Discount realtors can be divided into two basic types: full service and limited service. Full-service real estate agents are the traditional agents most people think of—they’ll handle everything necessary to get your house sold, and often some extras on top of that, including:
Negotiating with buyers and their agents.
Providing advice on offers and counteroffers.
Performing a comparative market analysis (CMA).
Coordinating professional photos of your home.
Hosting open houses.
Assisting with staging.
Limited-service agents are often less expensive but don’t offer one or more of these services (or charge an extra fee for them). However, these services can be vital not just for a good experience but also for getting the best price for your home. As such, sellers should generally avoid companies providing fewer services or little in-person support—the potential pitfalls are almost never worth the up-front savings.
3. Consider agent reviews
When choosing an agent, it's important to seek out reviews from actual customers. Agents will always paint themselves in the best light, but reality can sometimes look very different—past customers are the best source of truth about how an agent will conduct themselves.
Emily Dawson, a realtor with Coldwell Banker in Savannah, Georgia, says, “Look for agents that demonstrate honesty, integrity, and strong communication. The right agent will have the best interests of their clients in mind.”
She also cautions against realtors representing the buyer and seller: “One of my business values is to only represent one person in the same transaction—either the buyer or the seller. Both deserve full representation and the ability to walk away from the transaction knowing they were represented well.” It's hard to get that when there’s only one agent involved.
Finally, you should prioritize the reputation of individual agents over that of agencies or brands. A stellar agent at a mediocre agency will certainly be better than a mediocre agent at a stellar agency, because most real estate agents operate as independent contractors, even when affiliated with a brand.
4. Assess the agent's market knowledge
Knowledge of the local real estate market is one of the most important and valuable assets a realtor can bring to the table. It ensures that the seller can get the best possible price for your property.
Dawson says, “Understanding the markets that the agent serves is key on so many levels. If you are listing your home, you want an agent who is versed in keeping up with the market trends. Agents from other markets won’t know local trends, rules, codes, history, and neighborhoods. In other words, they won’t have the knowledge needed to provide top-tier service in markets they’re not familiar with.”
Experience also plays a role here. It’s not necessarily bad to go with a new agent (they have to start somewhere!), but one with years of experience may be more likely to get you the desired results. When choosing an agent, look for a track record of successful sales.
5. Evaluate communication and availability
Lastly, look for an agent that communicates well. Someone proactive and clear in communication can make selling your home much less stressful—few things are as frustrating as trying to chase down your realtor for information.
Availability is also important. An agent doesn’t necessarily have to be on call 24/7, but they should be available at the times you need them to be. Remember, the agent is working for you, and their main job, aside from selling the home, is to make your life easier during the process.
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