We Found the Best 1% Commission Realtors (Plus 3 to AVOID!)

By Amy Beardsley

Posted on August 11th, 2022

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How Real Estate Commission Works | What's a 1% Commission Realtor? | Top 1% Commission Realtors | Companies to Avoid | How to Choose a Discount Realtor | Alternatives

Realtor helping a home seller

If you’re reading this, you’ve likely heard about 1% commission realtors – seller’s agents who offer a discounted listing fee of 1% as opposed to the typical 3%.

You might be skeptical, and for good reason. Some discount brokerages offer lower rates in exchange for fewer services and lower quality, leaving the seller dissatisfied with their choice even if it saves them money. But some 1% commission realtors actually deliver on their promise: a low listing fee without compromising service, attention, and the drive to sell your home for top dollar.

How do you spot the best 1% commission realtors near you? We’ve done the research – digging through customer reviews, doing the math on savings, and uncovering hidden fees – to find the best 1% commission realtors (and which ones to stay away from).

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Our top pick for 1% commission is Clever Real Estate. Unlike its competitors, Clever is highly reviewed and available nationwide. Clever helps more than 30,000 buyers and sellers save on their real estate transactions each year — and their 4.9 star Trustpilot rating (based on 1,600+ reviews!) offers strong social proof.

Our friends at Clever connect you with top-rated agents in your area who won’t skimp on service. The average seller who lists with Clever saves $9,000! You can interview as many agents as you like, and it's totally free with zero obligation.

🔎 Find the best real estate agents near you!

How Do Real Estate Agents Get Paid?

Real estate agents get paid by commission based on a percentage of a home’s sale price. According to the Clever Data Center, real estate agents earn an average of 5.49% of the sale price of a home as commission.

Average Real Estate Agent Commissions

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Total commission is typically split between the buyer’s and seller’s agents, with each receiving between 2-3% of the total sale price.

For example, suppose you sell your home for $400,000. You’d owe around $21,960 of your profits to the buyer’s and seller’s agents in commission.

Additional Costs for Sellers

Commission is usually the largest expense for home sellers, but it isn't the only expense to consider. You must also factor in:

  • The original price you paid for your home
  • The amount of money you spent buying supplies or paying someone to repair or renovate your home
  • The money that went to interest, home insurance and property taxes
  • The remaining balance of your mortgage

These expenses add up and cut into your profits significantly.

By capping the seller’s agent fee with a 1% commission realtor, you reduce your overall commission to around 3.69% – that’s $7,200 in savings on your home sale.

What's a 1 Percent Commission Realtor?

A 1% commission realtor is a real estate agent who works on a 1% listing fee commission (rather than the typical 2.8-3% commission you see with traditional realtors).

Real estate agents with a 1% commission agree ahead of time to accept this amount as compensation for closing a deal on a home.

🛑 A word of caution: Some real estate agents charge minimum fees. Before signing a contract with any agent, carefully read the fine print. Before you hire them, you should understand potential hidden fees and what services they’re providing (or not providing).

When you work with a 1 percent commission realtor, you’ll still be expected to pay the buyer’s agent commission – typically 2.7-3% of the home sale price. But with significant savings on the seller’s agent side, it’s still worth it to work with a 1% commission realtor.

Who Should Choose a 1 Percent Commission Realtor?

Working with a 1% commission realtor gives you the best of both worlds: lower costs than a traditional real estate agent without sacrificing quality service. Agents are professionals at marketing your home and selling it for more money than you could yourself.

As with any agent, do your research, interview agents before committing to anything, and make sure you’re not missing out on any deal breakers in exchange for a lower fee.

How Much Can I Save With a 1% Commission Realtor?

To illustrate how a 1% commission realtor can help you save, we crunched the numbers for a $400,000 home sale:

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The 3 Best 1 Percent Commission Realtors

🔥 Tip: We recommend shopping around to compare discount brokerages before hiring an agent. In most cases, it’s completely free to inquire with no obligation to work with an agent!

If you don’t want to investigate on your own, we’ve found the top 1% commission realtors for you.

1. Clever Real Estate

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Our friends at Clever Real Estate set the gold standard among discount real estate brands. As the only nationwide service reliably providing 1% listing fees, it offers the best rates and seller support.

The average home seller saves $9,000 on commissions, just for finding their agent through Clever.

It's free to work with Clever to find top-rated local agents from high-performing firms like Berkshire Hathaway, RE/MAX and Keller Williams. The company pre-negotiates a 1% commission on your behalf, so you don’t have to.

Clever's 1% commission is full service and includes comparative market analysis, pricing strategies, staging advice, professional photography, marketing, showings, open houses and more.

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2. Redfin

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Redfin provides sophisticated home search tools and salaried, in-house agents to help you sell your home in 135 U.S. cities. Redfin offers a 1% listing fee to sellers, but only if they also buy their next home with a Redfin agent. Otherwise, sellers must pay a 1.5% listing fee.

However, Redfin has minimum fees in certain areas that can add up to $7,500, limiting your savings when selling a lower-priced home. And while you may save money, you might miss out on quality service.

Redfin agents juggle three times as many customers as traditional realtors, so you might not get the hands-on service you expect. Redfin customer reviews have reported flaky agents and missed appointments.

In addition, Redfin is technology-oriented and much of their process takes place online. If you are not comfortable conducting business through a computer or phone app, Redfin may not be right for you.

» Read More: Redfin Reviews: A Complete Guide for Buyers and Sellers

3. SimpleShowing

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Like Clever, SimpleShowing offers a guaranteed 1% commission real estate listing fee. But availability is limited. The company only operates in Texas, Florida, and Georgia, and you’ll find agents mainly in cities like Atlanta, Dallas, Tampa, Orlando, Miami and Fort Lauderdale.

Like Redfin, SimpleShowing relies on technology to offer services at lower prices. Also like Redfin, you’ll pay minimum commissions that could be higher than 1% in some markets. Make sure to read your agreement carefully before you sign with SimpleShowing.

Which 1 Percent Commission Realtors to Stay Away From

You may not always get what you want when you opt for a 1% commission realtor. Here are a few picks that might have attractive fees but fall short on service and support.

Trelora

Trelora is a discount real estate brokerage doing business in a handful of cities across seven states: Arizona, California, Colorado, Georgia, North Carolina, South Carolina and Washington state.

Although their savings might be appealing on paper, the company lacks the hands-on support and personal service other discount realtors offer. Unless you want a DIY approach, your commission savings won’t be worth the sacrifice on service and support.

REX

Although it’s a legitimate discount brokerage with licensed agents, REX is a little out of touch with what it takes to sell or buy a house. For example, the company only recently began listing on the MLS — an essential database of house listings throughout the U.S.

You’ll also pay more. Rex fees start at 2.5% of the final sales price, plus you’ll face minimum fees in some areas.

Assist-2-Sell

Assist-2-Sell is a discount real estate brokerage franchise operating throughout the U.S., Canada and Puerto Rico.

You could pay as little as $2,995 to sell your home. However, that’s the minimum amount. The fee varies, but how much you can expect to pay is a mystery — Assist-2-Sell doesn’t list commission fees anywhere on the site.Unknown fees should be a red flag for sellers to proceed with caution.

3 Things to Look for in a Discount Real Estate Broker

Beware that some discount realtors only list your home on the MLS and leave you to figure out the rest. You don't need to commission a real estate agent to do that. You can pay a simple flat fee to get your house on the MLS — the same as if you are selling FSBO.

Even at 1% commission, your realtor is still making a good chunk of change on your home sale. They should be providing the same expertise and hands-on guidance you’d expect from a traditional realtor.

Look for these three things when working with a discount real estate broker:

💸 Pricing Assistance: Discount realtors should help you price your home strategically by completing a comparative market analysis (CMS) and balancing that with your needs.

📸 Marketing Services: At minimum, marketing services should include a listing description, photography, listing the MLS, and private and public showings.

📃 Negotiation and Contract Support: A real estate agent should help you negotiate upon receiving offers and throughout the due diligence period. They should also provide all legal paperwork and thoroughly explain all contract options and contingencies.

Make sure your real estate agent is contractually obligated to help you with these professional services. Otherwise, you may not get your money's worth.

Warning Signs When Looking for a 1% Commission Agent

Not all 1% commission real estate agent services provide full service. Before you sign on with an agent, look for these red flags:

  • Minimum fees. Minimum fees can eliminate savings if your house is priced lower. For example, a listing company advertises a 1% commission fee, but they charge a minimum $6,000 commission. If you sold a $200,000 home, you would pay a $6,000 commission, which is 3% of the sales price (instead of the “promised” 1%).
  • MLS-only listing. Real estate agents are experts at marketing properties and getting offers. If a discount real estate agent does not provide these services as part of their listing fee, you’ll waste a lot of money for something you could do yourself.
  • No local agents. A discount realtor unfamiliar with your neighborhood and the local market can't give you good advice on comps or pricing. They may overprice or underprice your home and cost you money because they lack local experience.
  • Unavailable. An agent who does not respond to calls or emails quickly does not take your business seriously and won’t work hard to sell your home.

Alternatives to a 1 Percent Commission Realtor

Discount agents are much less expensive than traditional brokers. Plus, they offer more support than for sale by owner (FSBO), cash buyer companies and iBuyers. But if you’re not sold on a 1% commission realtor, consider these other options.

Sell For Sale by Owner

Many homeowners want to save money on real estate agent commissions by selling the home themselves.

However, it isn't easy. People who sell for sale by owner (FSBO) still have to pay to list the home, market it, manage paperwork and hire a real estate attorney or title company to manage closing. You might get fewer inquiries as a FSBO seller since nearly 90% of buyers use a real estate agent or broker to buy their home.

» Read More: Is Selling For Sale By Owner on Zillow Worth It?

Sell to a Company That Buys Houses for Cash

Companies like We Buy Houses, We Buy Ugly Houses, and Sundae buy houses quickly for cash. They’re generally interested in homes sold “as is” that they can quickly “fix and flip.”

For homeowners desperate to liquidate a dilapidated home as fast as possible, cash home buyers can be a valid option. However, sellers rarely get fair market value for their homes.

Cash buyers pay as little as 50% of the home’s fair market value, so the reduced effort isn’t worth the reduced profit for most sellers.

Sell to an iBuyer

An iBuyer (or instant buyer) is a real estate company that sells and buys homes automatically. The service can make or accept an offer within 24 to 48 hours using algorithms to calculate home values. It’s unlikely you’ll get anything close to fair market value, but iBuyers can get cash in your hand quickly. Most transactions with iBuyers close within two weeks or less.

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Sell With a Traditional Real Estate Broker

Selling your home with a traditional broker is the typical selling experience you’d think of. Traditional real estate agents provide all the services you expect, but will likely charge closer to 3% commission on your home sale.

Find a 1 Percent Commission Realtors Near Me

Not all 1% commission realtors are available nationwide — so once you identify what's available in your area, we recommend shopping around.

Our friends at Clever make it easy to meet top-rated local agents with experience and a proven track record in your neighborhood. Unlike other 1% commission companies, Clever's agents work for well-known brokerages like Keller Williams, Century21, and RE/MAX. You'll get the same white glove service at a fraction of the cost!

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Recommended Reading

FAQs About 1 Percent Commission Realtors

How Do Real Estate Agents Get Paid?

Real estate agents get paid by commission based on a percentage of a home’s sale price. According to the Clever Data Center, real estate agents earn an average of 5.49% of the sale price of a home as commission.

What Is a 1 Percent Commission Realtor?

A 1% commission realtor is a real estate agent who works on a 1% listing fee commission (rather than the typical 2.8-3% commission you see with traditional realtors). Real estate agents with a 1% commission agree ahead of time to accept this amount as compensation for closing a deal on a home. Find the best 1% commission realtors!

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Posted in Real Estate Agent Commission, Selling a House, Real Estate Reviews