The average commission rate for Realtors is 5.46%. That’s $21,840 taken away from your $400,000 home. But that’s not all. You also spend an additional 6% on other home-selling costs.
A 1 percent commission Realtor will offer similar services at a discounted rate. That will lower your listing fee to 1%. A competitive buyer agent commission is 2.5%. You now have to pay a 3.5% agent fee. That’s just $14,000.
You can lower this amount to just $12,000 with Houzeo’s Gold package. You get all the tools available to real estate agents at just 0.5% commission. Moreover, you can also manage your showings and offers 100% online.
Rankings: Top 1 Percent Commission Realtors
We have compiled a list of the top 1 percent commission companies to help you make an informed decision.
| Company | Listing Fees | Max Savings | 100% Online | 5-Star Reviews |
|---|---|---|---|---|
| Houzeo | $249 Flat Fee 2 | ✅ | ✅ | ✅ |
| SimpleShowing | 1% Commission | ❌ | ❌ | ✅ |
| Houwzer | 1% Commission | ❌ | ❌ | ✅ |
| Prevu | 1.5% Commission | ❌ | ❌ | ✅ |
| Redfin | 1.5% Commission | ❌ | ❌ | ❌ |
Reviews: Top 1 Percent Commission Realtors
1. Houzeo.com
BEST DISCOUNT REAL ESTATE SERVICE
Listing Fee: $249Houzeo leads in discount real estate services with 20M+ active real estate listings on its platform. You get to choose from 3 packages:
- Silver Package – $249: Your home is listed on your local MLS with 24 photos for 6 months. It is also visible on Zillow, Trulia, etc. You get unlimited listing changes, open houses, and tools like Houzeo Showings and Houzeo offers.
- Gold Package – $299: You get all the benefits in the Silver package plus maximum photos and licensed broker assistance in this package. You also get seller disclosures and a premium yard sign that makes your listing pop.
- Platinum Package – $349: You get everything in the Gold Package, along with virtual full-service support and a personal concierge. Plus, all the buyer and agent calls are forwarded to you along with a 12-month listing term.
Note: Expect an additional fee of 0.5% to 1.25% at closing.
Here are the key reasons why Houzeo is one of the top discount real estate services:
- Max Savings: Houzeo’s flat fee packages help you skip agent commissions. Plus, with Platinum package, you get professional assistance similar to that of traditional agents.
- 100% Online: You can manage your listing, showings, and negotiations from your phone with the Houzeo Mobile App.
- Instant Social Sharing: You can post your home listing across Facebook, WhatsApp, LinkedIn, and X in an instant.
- 5-Star Customer Service: Houzeo has a 5-star customer support and chat service. You can access them 6 days a week.
- No Hidden Charges: All costs are disclosed upfront on Houzeo’s website, so you don’t have to worry about any hidden fees.
There are no dealbreakers with Houzeo.
Houzeo is rated 4.9 out of 5 stars on Google and Trustpilot.
» Houzeo Reviews: With over 11,100 happy customers, Houzeo is the most trusted discount real estate broker.
👉 Our Take: We recommend Houzeo’s Gold plan for most home sellers. It combines Houzeo’s advanced technology, maximum exposure, 5-star customer service, and virtual broker assistance. Plus, you can save 2% to 5% on commissions at closing.
2. SimpleShowing
LIMITED COVERAGE
Listing Fee: 1% CommissionSimpleShowing is a licensed full-service brokerage with just one package:
- 1% Listing Fee: This package provides full-service support from licensed agents who can assist you in your sale, right from listing to closing. You also get help with the paperwork for selling a house and can schedule home tours online.
Here’s what stands out about SimpleShowing:
- Maximum Exposure: Your home gets listed on the MLS and various national websites, including Realtor.com, Zillow, Trulia, etc.
- No Upfront Costs: You need not pay any fee to list your property. The 1% amount is deducted from the selling price after the sale is closed.
- End-to-End Agent Support: SimpleShowing offers pre-listing consultation, ongoing support, and contract assistance throughout the selling process.
- Access to Professional Photographers: You can opt for their professional photographers to help you get the best photos of your home.
SimpleShowing has the following downsides:
- High Listing Fees: You need to pay at least $5,000 as the listing fee, which is quite high, especially for a small-scale home.
- Limited Agent Pool: You can’t choose or switch agents if any issues arise with your assigned representative.
- Limited Coverage: They offer their services only in Georgia, Florida, and Texas.
SimpleShowing has 4.9 out of 5 stars on Google from over 110 reviews.
👉 Our Take: We recommend SimpleShowing to first-time home sellers for their their full-service support. However, their fees are on the higher side compared to some Flat Fee services that offer more tools at a lower cost.
3. Houwzer
BEST FOR LOW VALUE HOMES
Listing Fee: 1% of Sale PriceHouwzer is a full-service discount Realtor. It offers:
- 1% Commission: Houwzer charges a fixed 1% listing fee on the total home sale price. This includes the charges for signs, photography, open houses, negotiation, etc.
Based on our research, the benefits of Houwzer are:
- Market Exposure: Your listing will be displayed on sites like Realtor.com, Zillow, Trulia, etc.
- Unlimited Showings: Houwzer’s agents are available seven days a week. You can schedule as many showings as you want.
Here are some limitations we found with Houwzer:
- Not Ideal for High-Value Homes: Houwzer’s package might not be ideal for luxury homes. For example, selling a house worth $1 million would still mean paying $10,000 in commission.
- Less Personalized Service: Houwzer agents handle multiple clients due to the flat-fee model, which means you might not get personalized attention.
Houwzer has an average rating of 4.0 out of 5 stars on Yelp.
» Houwzer Reviews: Check out our detailed reviews on Houwzer.
👉 Our Take: The 1% commission is a little steep for the services they provide. You can consider a Flat Fee MLS in Florida alternative for more savings and better tech.
4. Prevu
LIMITED AGENT NETWORK
Listing Fee: 2% CommissionPrevu offers a single commission-based package to home sellers.
- 2% Commission: Your home gets listed on the local MLS after a detailed valuation and professional photography. Your Prevu agent manages showings, open houses, negotiations, and guides you through a successful sale.
Here are some green flags about Prevu that you must consider.
- Detailed Home Evaluation: The Prevu team helps you with a detailed evaluation of your home. They assist you in setting the right asking price for a quicker sale.
- User Friendly Website: Prevu’s website is simple to manage. The sellers can keep track of their listings easily.
There are some red flags with Prevu that you must know before choosing them.
- Comparatively Expensive: The 2% commission on the selling price can be expensive if compared to flat fee services.
- Limited Agent Network: Prevu has a small network of agents. This means that your home-selling process may get delayed.
- Unclear Commission Policy: Prevu’s website states commissions may change; that makes it difficult to estimate total savings.
Prevu has 5 out of 5 stars from 640+ reviews on Google.
👉 Our Take: We recommend Prevu to experienced sellers who are not in a hurry to sell their homes. For first-time sellers or those who want a quick sale, the limited agent network of Prevu may not be the best fit!
5. Redfin
Refund/Rebate Program
1-1.5% Listing FeeFor home sellers, Redfin.com has three main features:
- 1.5% Listing Fee: Redfin charges a 1.5% discounted listing fee. This fee is further reduced to 1% if you also buy a home with a Redfin agent within a year.
- Professional Assistance: The standard package includes services from listing to closing, that is, from pricing assistance to closing coordination.
- Redfin Concierge: For high-value luxury homes, Redfin offers services like home staging, deep cleaning, and select renovations for additional costs.
Redfin.com offers these features for home buyers:
- Technology-Driven Search: Redfin offers powerful search tools, including map-based searches, saved searches, and instant updates on new listings.
- Redfin Agents: Some Redfin agents may offer a different incentive structure than traditional commission-based agents, making negotiation possible.
- Refund/Rebate Program: In some markets, buyers receive a portion of the buyer’s agent commission back as a refund at closing.
Here are some advantages of choosing Redfin:
- Cost Savings: You pay significantly lower than the traditional 3% listing/seller agent commission. Plus, you could qualify for a rebate.
- Professional Marketing: Professional photography and 3D walkthroughs are a part of Redfin’s standard package. This enhances a home’s online presence.
- Advanced Technology: With 40+ filters to narrow down your search, the Redfin app makes it easy to find the right home.
- Local Agent Assistance: Local agents know their market better and can help you secure a good deal.
Here are some limitations we found with Redfin:
- Minimum Fees are Applicable: The 1.5% commission is a minimum percentage and varies by market.
- No Freedom in Agent Selection: You get an agent assigned automatically without having a choice in the matter.
- Service Variation: Redfin agents often handle a high volume of clients. This may limit personalized attention and reduce the range of services you receive.
- Poor Customer Reviews: Customers have complained that agents are often unreachable and unprofessional.
Redfin has an average rating of 4.3 out of 5 stars from 60+ reviews on Google.
» Redfin Reviews: The reality of the 1% fees, pros, cons, and alternatives!
Redfin delivers a tech-forward real estate experience. You get services like home pricing guidance, professional photography, and digital marketing. Redfin also serves as a home-buying tool as it lets users schedule showings and connect with local agents. However, you don't get to select your agent yourself.
How to Choose a 1% Commission Realtor?
Here are some of the factors to consider while looking for a 1% commission Realtor:
- Pricing: Most discount brokerages charge a minimum fee or a 1% commission, depending on your home’s value. Ensure that this minimum fee doesn’t take away the lion’s share of the profits from your home sale.
- Technology: Opt for a company that uses cutting-edge technology. It should have a user-friendly website and an advanced tech stack. A Realtor who leverages technology for marketing, data analysis, and document management can offer a more efficient service.
- Quality of Services: Interview multiple brokers from different companies to understand who offers the best services. Check agent reviews on platforms like Zillow and Realtor.com.
How Much Can You Save With a 1% Commission Realtor?
With a traditional real estate agent, you have to pay a fee as high as 6%. This fee is split equally between the seller agent and the buyer agent. A discount broker can reduce the 3% listing agent fee to just 1%.
Although it may seem like a small fraction, a 1% commission can help you save thousands! Here’s how much you can save working with a 1% commission Realtor:
| Selling Price | 1% Realtor Commission | 6% Realtor Commission | Total Savings |
|---|---|---|---|
| $250,000 | $2,500 | $15,000 | $12,500 |
| $500,000 | $5,000 | $30,000 | $25,000 |
| $750,000 | $7,500 | $45,000 | $37,500 |
Why Would an Agent Agree to a 1 Percent Commission?
Here are some reasons why agents work at a 1 percent fee:
- It’s a Hot Seller’s Market: In the current low-supply seller’s market, commission rates have decreased due to increased competition for listings. This forces agents to reduce their commission rates.
- The Agents Lack Experience: Agents who are beginning their careers with no prior experience might agree to lower rates. This helps them attract more home sellers.
- The Agents Deal in Luxury Properties: Luxury real estate agents make tens of thousands of dollars even at low commission rates. For example, a 1% commission agent will earn $40,000 for a property sold at $4 million.
Risks of Using a 1% Commission Realtor
Although discount brokers greatly increase your savings, they have their downsides:
- Lack of Personalized Service: During our research, we came across customer complaints that some of the agents were not able to give dedicated time to their clients. This is because low commission agents have to handle multiple clients simultaneously.
- Minimum Fees/Hidden Charges: Some real estate companies may have hidden fees not disclosed on their website. You might have to pay more than the advertised 1% commission rate at the time of closing.
Alternatives to 1% Commission Realtor
- Flat Fee MLS Companies: Flat Fee MLS companies charge a standard rate to list your home on the MLS. The fees are usually set between $179 – $399.
- Negotiate With Your Agent: Negotiating with the agent is always on the table. Standard 2.5% to 3% rates are not that different from 2% commission. Thus negotiate with your local agent to get a discounted rate.
- Sell to an iBuyer: Many iBuyers, like Opendoor and Offerpad, purchase hundreds of homes across U.S. markets. iBuyers can be a great option if you are wondering how to sell my house fast.
- Sell to Cash Home Buyers: Individual cash buyers and companies that buy homes for cash in the U.S., make all cash offers, usually within 24 – 48 hours. Cash buyers let you skip the hassle of listing on the MLS and conducting inspections and appraisals.
Bottom Line
A 1% commission Realtor can offer significant savings in a competitive market. However, you must carefully consider factors like pricing, technology, and service quality. Otherwise, its drawbacks may prove to be heavy on your pocket.
If you’re looking for greater savings, opt for a Flat Fee MLS company like Houzeo. Its user-friendly platform, expert support, and transparent pricing help you sell your home fast at a fraction of the cost.
Eager to Know How Houzeo Works?
We’ve got you covered. Check out the following video to understand how Houzeo works and why it is one of the best For Sale By Owner Websites in the U.S.
» Houzeo Review: Find out why Houzeo is one of the best FSBO websites in the US.
