The traditional real estate commission nationwide is approx. 6% of the final sale price. Whereas, some agents provide real estate services at flat fee rates or just at a 1% commission also.
Sometimes, low-commission agents lower the quality or may offer only fewer services in exchange for low-rate commissions. On the other hand, they sometimes provide full services also.
Keytakeaways
- You can save thousands of dollars by reaching out to a 1% Commission REALTOR.
- Some 1% listing agents provide a set package of services while some offer full service but with less hand-holding..
- Many 1% Commission agents add up hidden charges at the time of final payments. That is when you need to check out Houzeo’s Flat Fee services.
Rankings: Companies with 1% Commission
| Company | Listing Fees | Avg. Ratings | Mobile App | 100% Online | Nationwide Coverage |
|---|---|---|---|---|---|
| Houzeo | $349 Flat Fee | 4.9 (4469 reviews) | ✅ | ✅ | ✅ |
| Redfin | 1.5% Commission | 3.4 (370 reviews) | ✅ | ❌ | ✅ |
| SimpleShowing | 1% Commission | 4.9 (335 reviews) | ✅ | ❌ | ❌ |
| Prevu | 1.5% Commission | 5.0 (455 reviews) | ❌ | ❌ | ❌ |
| ListingSpark | 0.5% Commission | 5.0 (277 reviews) | ❌ | ❌ | ❌ |
Reviews: Top 5 Companies With 1% Commission
1. Houzeo.com
#1 Flat Fee MLS Service
Houzeo.com
- Listing Fee: $349
- Available nationwide
4.9/5
(4,521 reviews)
4.9/5
(4,521 reviews)Houzeo offers 4 Flat Fee MLS packages.
- Bronze Package – FREE: This package offers Houzeo listing only for 6 months with maximum photos. You pay a $49 refundable fee for a yard sign and receive your refund after sending a selfie with it.
- Silver Package – $349+: This includes everything that home sellers typically look for.
- Gold Package – $399+: It is Houzeo’s signature MLS package and includes all the technology Houzeo is known for Houzeo Showings, Houzeo Offers, and DigiTransact.
- Platinum – $999+: It includes the assistance of a licensed broker to help you with negotiations, disclosures, and closing.
👉 Our Take: We recommend the GOLD plan. You’ll have all the access to Houzeo tech, making managing showings and offer negotiations easy!
» Houzeo Reviews: Houzeo is 100% online. You can finish listing formalities in less than 60 mins.
Houzeo is America’s #1 Flat Fee MLS service because of 4 reasons:
- Max Exposure: Houzeo MLS packages give you access to the MLS, Zillow, Trulia, Realtor.com, Redfin, and 100s of other websites.
- 5-star Customer Service: Houzeo has a fully staffed customer service desk available 6 days a week. Chats and emails are open 7 days a week. This is rare in today’s world.
- 100% Online: Houzeo is high-tech. For you, this means easy listing, fast changes, online showings, and online offers. Houzeo Mobile App is also very powerful.
- No Listing Commission: In most states, you’ll be paying just a small flat fee to list on MLS. Houzeo covers 47 states + DC!. And remember, all fees are disclosed upfront, so there are no Houzeo hidden fees.
There are no dealbreakers with Houzeo.
» Houzeo Reviews: Houzeo is rated “Excellent” with a 4.9 out of 5 star rating by 4,521 home sellers on Google Reviews and Trustpilot!
Houzeo is rated 4.9 out of 5 stars by thousands of home sellers on Google & Trustpilot.
» Houzeo Reviews: Check out how Team Houzeo has addressed all Houzeo complaints from home sellers.
Houzeo.com is a top-ranked Flat Fee MLS service. Houzeo provides an unbeatable combination of max savings, 5-star customer support, and cutting-edge technology.
When you list on MLS via Houzeo, you get a personalized dashboard, a 100% online platform, and timely customer service—at a flat rate.
2. Redfin
BEST TECH-ENABLED BROKERAGE
Redfin.com
- Listing Fee: 1.5% of sale price
- Available in 80+ U.S. Markets
- 3.3/5
(371 reviews)
3.3/5
(371 reviews)Redfin is America’s #1 discount real estate brokerage. This low-commission broker specializes in home buying. Redfin.com’s technology is what sets it apart from all other platforms.
- Redfin Full-Service Agent – 1.5% Commission: This is a full-service package. This includes pricing assistance, listing paperwork, negotiation support, etc.
- Redfin Concierge – 2.5% Commission: The “Concierge” plan includes everything from the Full-Service package. Additionally, it includes services like professional cleaning, home staging, and everything.
- Redfin Premier Agent – 1.5% Commission: This package is exclusively for luxury properties and includes everything that comes with the Full-Service package.
👉 Our Take: Redfin.com is a good option if you are looking for a nationwide discount real estate broker. We recommend its concierge plan because it includes everything.
» Redfin Reviews: The Reality of 1% Fees, Pros, Cons, & Alternatives!
Here are some advantages of choosing Redfin:
- Advanced Technology: Redfin is primarily known for its advanced tech platform and mobile app.
- Full-Service Agents at Low Commission – 1.5%: Redfin’s full-service package is priced at 1.5%. It saves you thousands compared to the traditional 3% listing commission.
- Buyer Rebate – 0.5%: Clients who sell and buy with Redfin within one year get a rebate of 0.5% in the second transaction. However, this offer is available with the Full Service Plan.
- Detailed Paperwork: Redfin provides the necessary paperwork and an elaborate listing agreement with a marketing plan.
- Nationwide Coverage: Redfin covers 80+ markets in the US.
In our research, we found some red flags of Redfin, that could make your experience less satisfactory.
- Lack of Personalized Services: Customers have often complained that Redfin agents are not able to give personalized service, as they serve a high volume of clients.
- Poor Customer Reviews: Customers have complained that agents are often unreachable and unprofessional.
- Slow Listing Process: According to Redfin’s listing agreement, a Redfin property takes 18 days to list on MLS. Services like Houzeo will list you on the MLS within 24 to 48 hours.
- Limited Agent Selection: As per customer reviews, Redfin lacks an array of agents. This means you get an agent assigned automatically without having any choice in the matter.
- Agents are Less Incentivized: Unlike traditional agents who work for commission, Redfin agents get a fixed salary. This can demotivate them from offering you services apart from Redfin’s defined services.
Redfin has an average rating of 3.3 out of 5 on Consumer Affairs.
» Redfin Reviews: The Reality of 1% Fees, Pros, Cons, & Alternatives!
Redfin is one of the most popular discount brokers in the US, primarily known for it’s mobile app. The company gives you advanced tech support and full-service agents for a 1.5% commission.
Before you choose Redfin, make sure to check out its reviews online. Most of the reviews complain about the agent’s inconsistent services.
3. SimpleShowing
LIMITED SAVINGS
Simple Showing
- Listing Fee: 1% of sale price
- Restricted coverage
- 4.9/5.0
(335 reviews)
SimpleShowing, like any other low-cost real estate broker, matches sellers with real estate agents.
- Listing Agent Commission- 1%: SimpleShowing agent provides full-service MLS listing at a 1% commission rate. Along with this, there are premium lockbox charges that increase the seller’s cost.
- Buyer’s Agent Commission-3%: Apart from the listing commission of 1%, the seller has to pay a 3% commission to the buyer’s agent also. This sums up to a total of 4% commission at the end.
👉 Our Take: SimpleShowing is a good option if you are looking for a 1% listing agent in Florida, Texas, and Georgia.
SimpleShowing is a decent option when buying or selling.
- Technical Support: SimpleShowing provides a great technological experience to its clients. They can book their home tours using their online services.
- Buyer’s Rebate: SimpleShowing rebates a portion of its commission to eligible home buyers.
- Experienced Agents: It has a team of experienced local agents. You can rely on them for a smooth real estate process.
You should know about a few red flags that SimpleShowing has. This can make your experience less satisfactory.
- Hidden Charges: Buyer’s agent commission is not included in the SimpleShowing’s listing fee. This commission is upto 2.5%-3%.
- Buyer’s Rebate Eligibility: Buyer is eligible for a refund only if the buyer uses SimpleShowing as their Buyer Broker.
- Lender’s Approval: Some lenders may not allow buyers to receive the refund from SimpleShowing. Lenders consider contract, mortgage products, and pricing policies to allow the buyer receive full or a part of rebate amount.
- Minimum Commission: SimpleShowing has minimum commission of $3,500. Rebate applies only if the minimum commission accounts to $3,500.
SimpleShowing has 4.9 out of 5 stars from 335 reviews on Zillow, Google, and Trustpilot.
SimpleShowing provides a great experience with its top-notch brokerage services. You can trust its team of experienced local agents for your real estate process.
They also charge $5,000 as their minimum fee. Only buyers who hire agents through SimpleShowing are eligible for a refund. The buyers rebate also requires the lenders clearance.
4. Prevu
RESTRICTED COVERAGE
Prevu
- Listing Fee: 1.5% of sale price
- 5.0/5.0
(455 reviews)
5.0/5.0
(455 reviews)Prevu is a full-service low commission brokerage based in New York that aims to change the old-school ways of the real estate market.
- Listing Agent Commission- 1.5%: Prevu charges a lower commission of 1.5%. It offers a full-service package at a low commission rate.
👉 Our Take: Prevu’s listing price is lower than traditional realtor commission, but it is still higher than other low-commission real estate companies.
» Prevu Reviews: Read our review of Prevu Real Estate & decide if it’s a good choice for you.
Prevu is a decent option when you are buying or selling a property.
- Qualified agents: Prevu’s qualified agents provide real estate services at low commissions.
- Buyer’s Rebate: Buyers get a commission rebate of 2% of the purchase price if they choose Prevu for buying a house.
- Serve a High Volume: Prevu relies on its team to serve a high volume of clients to offer discounts.
You should know about a few red flags that Prevu has. This can make your experience less satisfactory.
- Additional Charges: Buyer’s agent commission is not included in trevu’s listing fees. This commission is up to 2.5%-3 % of the sale price.
- Limited Agents: Prevu’s team is small and its agents deal with higher volume. So you have limited options when it comes to selecting an agent.
- Personalized Experience: Since Prevu’s team handle a higher volume, the agents won’t be able to provide personalized services.
- Limited Coverage: Prevu Real Estate serves 6 states only- New York, Massachusetts, Connecticut, California, Pennsylvania, and Washington.
Prevu has 5.0 out of 5 Stars from 455 reviews on Google.
» Prevu Reviews: Read our review of Prevu Real Estate & decide if it’s a good choice for you.
Prevu has highly qualified agents to provide seller’s real estate services at a low commission rate . It also offers one of the most significant commission rebates for buyers.
Prevu charges additional fees of 2.5%-3% as buyer’s agent commission. Its team is small. The aim of serving high volume limits the option of selecting an agent.
5. ListingSpark
GREAT FEATURES
ListingSpark
- Listing Fee: 0.5% of sale price
- 5.0/5.0
(277 reviews)
ListingSpark is one of the top discount real estate brokerages with its seller-centric all-in-one platform.
- Listing Agent Commission: ListingSpark has a 0.5% listing commission. The other package that they have is ‘Pay as you go’ where you need to pay $7 on a per-day basis as listing commission.
- Spark Plan- $1,499: In this package, you have to pay $250 upfront and the remaining at the time of closing. This includes all the basic services.
- Premium Plan- $2,999: You need to pay $500 upfront and the remaining at the time of closing. This package is perfect for homeowners who want expert guidance.
👉 Our Take: ListingSpark is a good option as it offers a range of features for home sellers at a reasonable price. Its seller-centric approach though does leave more to be desired for home buyers.
» ListingSpark Reviews: Is the $7/day fee worth it?
ListingSpark is a better choice when you are looking for a low-commission agent.
- Paperwork: ListingSpark provides paperwork for the whole selling process.
- Marketing Strategy: ListingSpark’s software runs 150 unique marketing strategies to find you a perfect buyer.
- Automated Services: ListingSpark has automated contract software that does all the paperwork on your behalf. You only need to sign wherever required.
- Closing Cost Calculator: It also provides a closing cost calculator which helps you to calculate the seller’s net sheet.
- Property Search Feature: Property search feature is also available to make the process of home search easy.
You should know a few red flags that ListingSpark has. This can make your experience less satisfactory.
- Extra Charges: ListingSpark charges an extra amount to access services. It has different packages which include different services for sellers.
- Agent on Demand: You have to pay extra to hire one of their real estate agents $975. The agent will help you with negotiations, pricing reviews, and contract compliance.
ListingSpark has 5.0 out of 5 Stars from 277 reviews on BirdEye.
» ListingSpark Reviews: Is the $7/day fee worth it?
ListingSpark has automated software that does all the paperwork on your behalf. All you need is to sign it. ListingSpark provides a closing cost calculator to evaluate the seller’s Netsheet.
ListingSpark charges additional amounts to access its service packages. To hire a real estate agent you have to pay an extra amount of $975. The agent will help you with negotiations, pricing, and contract compliance.
How Does a 1% Real Estate Commission Work?
In a traditional real estate transaction, you will generally pay up to 6% real estate agent commission.
Opting for a 1% Commission Realtor helps you save more money. The seller’s agent fees and buyer’s agent fees will bring down your total rate to 3.5% to 4% of the final price. This gives you almost 2% to 2.5% in savings.
How Much You Can Save?
Realtor commission is one of the biggest expenses. As both sides have closing costs, the home seller has to pay the commission to the seller’s agent and the buyer’s agent.
No wonder some agents and brokerages offer to serve real estate at a 1% commission rate to attract more business. This 1% reduction rate is highly impactful to the seller.
Now you can add a few more dollars to your savings. To understand this, refer to the table below:
| Types of Agents | Home Sale Price | Agent Commission (%) | Agent Fees | Total Savings |
|---|---|---|---|---|
| Traditional Agents | $800,000 | 6% | $48,000 | NIL |
| 2% Commission Agents | $800,000 | 2% | $16,000 | $32,000 |
| 1.5% Commission Agents | $800,000 | 1.5% | $12,000 | $36,000 |
| 1% Commission Agents | $800,000 | 1% | $8,000 | $40,000 |
| Flat Fee MLS | $800,000 | $349 | $349 | $47,651 |
Traditional Real Estate Commission
Talking about the traditional rate, the average real estate commission falls between 5%-6%. Taking the 6% rate into consideration, the breakdown of the commission percentage is as follows:
- 6% Real Estate Commission
- 3% Listing Agent Commission
- 1.5% Listing Agent Commission
- 1.5% Listing Broker Commission
- 3% Buyer’s Agent Commission
- 1.5% Buyer’s Agent Commission
- 1.5% Buyer’s Broker Commission
- 3% Listing Agent Commission
The average realtor commission is approx. 2.5%- 3% of the home sale price. However, you need to pay both agents, so the total of it comes up to 5%-6%. The commission split depends on the agreement between the agents.
How to Find a 1% Commission REALTOR?
1. Brand Goodwill
The goodwill of the brokerages matters a lot when you are going to sell your home. Go with the companies that have a proven good reputation. Check out the ratings and reviews provided by past sellers who have worked with them.
2. Pricing Model
Be careful when it comes to paying the charges. Many times brokerages add hidden charges at the time of final payments.
You also need to check the minimum fee. For instance, if the selling price of your house is $250,000 and the agent has a minimum fee of $5,500. If you calculate realtor fees, you are paying a 2.2% commission rate.
Some brokerages internally set a bar of the minimum fee even after advertising a 1% Commission. In the case of upfront fees, you will not get your money back if ever you want to change your mind.
3. Service Structure
Go for companies who pre-negotiate the deal at lower rates. You will get to know the amount you have to pay at the end of the sale. Some brands have made the process online to make it more convenient.
The process should be familiar to the customer who has sold a home earlier. Avoid companies that lower the rates by reducing the services and avoiding in-person support. This may lead to mispricing of your home.
Why would an Agent Agree to 1 Percent Commission?
Here are some reasons due to which agents work at 1% fee:
- It’s a Hot Seller’s Market: In a seller’s market, the commission rate tend to drop slightly. A low supply pf inventory leads to greater competition for listings. This forces agents to reduce their commission rates to get more listings.
- The Agents Lack Experience: Beginner agents with no solid sales history might agree to lower rates. This helps them attract more home sellers.
- The Agents Deals in Luxury Properties: Luxury real estate agents make tens of thousands even at low commission rates. For example, a 1 percent commission agent will earn $40,000 for a property sold at $4 million.
What a 1% Commission REALTOR Should Offer?
- Promotions and Marketing: Marketing is the core factor in making things reach many people. Realtors need to focus on the planning, promotions, and marketing of the property professionally.
- Contract Negotiations: Since you are selling a house, the legal contract should be according to your conditions. It’s the job of the agent to professionally negotiate on your behalf. He will then prepare a contract that fits your conditions.
- Financial Assistance: You need to have correct knowledge about the ongoing real estate market trends. The agent will do the competitive market analysis and give you a fair idea of the pricing of your home for sale.
- Closing of the Deal: At the time of closing the deal, the financial and legal parameters should also be monitored carefully. The final settlement is to be made by the agent only.
Should I Go for a 1% Commission Realtor?
1% REALTOR is a good option if you want to save money on commission. This situation is beneficial only if all the services are included in their package. But most of the time this turns up to be a drawback.
It is difficult for a 1% commission realtor to make a profit. To earn profit they handle multiple properties at the same time. This sometimes distracts the agent which may lead to inefficiency on their end.
Alternatives to 1% Commission Realtor
- Flat Fee MLS Companies: Flat Fee MLS companies provide listing services at a flat fee rate. There are no hidden charges except that. Sellers may avoid the high commission costs by choosing Flat Fee Companies.
- For Sale By Owner: Though it seems that FSBO will cause you a lot of savings, it comes with a price to pay. The sellers are responsible for the complete home-selling process. There are chances that you may lack at any step of the selling process.
- We Buy Houses For Cash Companies: Cash home buyers make all-cash offers, usually within 24 to 48 hours. Cash buyers let you skip the hassle of listing on MLS, inspection, appraisal, etc.
- iBuyer: Many iBuyers, like Opendoor and Offerpad, purchase hundreds of homes. iBuyers can be a great option if you are wondering how to sell your house fast.
Closing Statement
To sum it up we can say that you can save thousands of dollars with a 1% realtor. This commission is 1% of the final sale price of the property. There are a few alternatives to a 1% commission realtors, present in the market as well.
These REALTORS need to work out some factors to stand out in the real estate market like, professionally handling marketing, dealing with legal formalities, and closing the deal efficiently.
Frequently Asked Questions
What is a 1% selling fee?
A 1% commission realtor is an agent or brokerage that will sell your house for 1% of the final sale price. In other words, if your home sells for $400,000, you would pay your realtor a $4,000 commission, not including the buyer's agent fee.
What is the lowest commission a realtor will take?
Using a low commission agent can save you several percentage points on the sale price of the home. Their fee typically ranges 1 to 1.5 percent, compared to the national average of 5.37 percent. Continuing the example of the $300,000 home, the savings is more than $10,000.
What commission do most realtors charge?
The average real estate commission is 6 percent of a home's purchase price, which is split evenly (3 percent each) between the buyer's agent and the seller's agent. However, the typical percentage has been lowering over the years, and the average Realtor commission is 5.37 percent according to Clever.
Is 1% a good estate agent fee?
You should be suspicious of estate agents charging less than 1% – there's usually a reason they're cheap. You should always choose no sale, no fee – estate agents only sell about 50% of properties on their books, so don't flip a coin on such a significant spend.
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