Finding a 1% Realtor: A Comprehensive Guide

Houzeo
5 min readDec 19, 2023

One percent commission Realtors offer similar services to a traditional Realtor at a discounted rate. While selling your house, traditional realtors take a big bite — 6%! That’s a lot of money gone. But there’s a new way to sell: 1% commission Realtors! They work hard for you but take a much smaller slice, leaving more cash in your pocket.

Before you jump in, there are a few things you should understand. This guide will explain everything you need to know about 1% realtors.

How do you choose a 1% commission realtor?

Saving big with a 1% realtor sounds good, right? But hold your horses — not all low-commission options are created equal. Here’s how to pick a real pro who won’t leave you disappointed:

  • Price Check: Don’t let fancy words hide sneaky fees. Ensure that 1% truly means “one small slice,” not “goodbye, most of your profits!” Don’t let shady deals eat into your hard-earned savings. Compare fees across companies.
  • Tech Genius, Not Tech Dud: Forget old-school flyers and dusty photos. Your realtor should be a tech whiz, using cool websites, smart data tools, and online marketing magic to show your house to everyone searching for their dream home. Think of faster sales, not slower horse-and-buggy days.
  • Service Showdown: Don’t settle for a one-trick pony. Talk to different realtors, ask many questions, and check online reviews. Find someone who listens like a trusty friend, negotiates like a champ, and makes the whole process clear and easy, like riding a smooth-rollin’ wagon.

Remember, finding the perfect 1% realtor isn’t about fancy talk. It’s about getting someone who respects your budget, uses the latest tools to sell your house quickly, and has the skills to land you the best deal.

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

Traditional real estate agents typically charge a 6% commission when selling a property, split evenly between buyer and seller agents. A few discount Realtors offer a significantly reduced commission rate of 1% versus the standard fee structure. If your buyer is represented by a real estate agent, you may still have to pay the 3% commission.

This small difference in percentage translates to substantial financial benefits for the seller. Consider the following examples:

  • Selling a $250,000 home: With a 6% commission, the seller would incur a $15,000 fee. However, opting for a 1% commission reduces this fee to $2,500, resulting in a $12,500 savings. This translates to a 5% increase in net proceeds for the seller.
  • Selling a $500,000 home: The 6% commission translates to a $30,000 fee, while the 1% commission translates to a $5,000 fee. This results in a $25,000 savings, representing a 5% increase in net proceeds for the seller.
  • Selling a $750,000 home: The 6% commission translates to a $45,000 fee, while the 1% commission translates to a $7,500 fee. This results in a $37,500 savings, representing a 5% increase in net proceeds for the seller.

Top 1% Commission Realtors in the US

Sellers can retain more home sale proceeds if they choose a realtor who charges a 1% commission. However, it is important to note that not all 1% commission realtors offer the same level of service or expertise as traditional agents.

While traditional 6% real estate commissions can feel hefty, the 1% model offers compelling savings. However, navigating this space requires careful research, as service levels and approaches vary across companies.

Here’s an overview of three prominent players:

1. Houzeo: Technology-Driven Flat-Fee MLS Listing

  • Houzeo empowers independent sellers through flat-fee MLS listings, bypassing agent commissions entirely. Choose from tiered packages offering flexible services, from basic listing management to virtual full-service support.
  • Extensive coverage across 47 states, excellent customer rating (4.9 stars), user-friendly online platform, and competitive pricing at $379.
  • Requires seller involvement in showings and negotiations. The full-service Platinum package incurs a 1% commission at closing.

▶️ Houzeo Reviews: Learn more about Houzeo before making a decision.

2. SimpleShowing: Local Expertise with Tech Advantage

  • SimpleShowing combines 1% commission listings with local agent support. They handle home valuation, professional photography, and paperwork assistance, simplifying the selling process.
  • Experienced local agents provide personalized guidance, 5-star customer ratings, convenient online booking for tours, and professional marketing materials.
  • Currently operates in Florida, Texas, and Georgia. Limited to basic service packages may not be ideal for highly complex transactions.

3. Houwzer: Full-Service 1% Commission

  • Houwzer offers a traditional full-service experience with a competitive 1% commission rate. They also incentivize repeat business with a $2,500 cashback bonus if you buy and sell through them.
  • Lower commission compared to traditional agents, user-friendly platform, and additional services like photography and closing assistance are available.
  • Limited geographic availability (primarily Philadelphia, PA) salaried agents who manage multiple clients simultaneously may result in less personalized service.

To choose the right 1% Realtor for your home sale, consider factors like service, budget, geographic coverage, and technological comfort.

▶️ 1 Percent Commission Realtors: Check out the comprehensive guide on top Realtors in the US.

Potential Drawbacks of 1% Commission Realtors

While the lower commission rates offered by 1% realtors hold substantial financial appeal, being aware of the potential drawbacks is crucial.

  • Potential Diminution of Personalized Service: Lower commission structures may incentivize some agents to manage larger client rosters. This could lead to reduced individual attention and a less personalized experience for the seller. Therefore, carefully evaluating an agent’s past client testimonials and workload is advisable to assess their commitment to dedicated service.
  • Transparency Concerns and Hidden Fees: Not all 1% commission models are demonstrably transparent. Some firms may advertise a headline-grabbing 1% rate but obscure additional fees in their contracts. Scrutinizing fee structures thoroughly and ensuring all potential costs are clearly outlined before engaging an agent is essential.
  • Reduced Marketing Efforts: Sometimes, the lower commission may translate to less extensive marketing for your property. This could limit buyer exposure and impact your negotiating leverage. It is important to clarify the marketing strategies the 1% realtor employs and ensure they align with your expectations for exposure and reach.
  • Buyer Perception and Negotiation Skills: Some buyers may hold an unsupported bias against properties listed by 1% of realtors, potentially due to misconceptions about service quality. Additionally, less experienced agents may lack the negotiation skills to achieve optimal sale prices. Selecting an agent with a proven track record and strong negotiation experience can mitigate these risks.

Alternatives to 1% Commission Realtor

While 1% of realtors offer substantial savings, alternative avenues may cater to specific needs. Consider these options:

  • Flat-Fee MLS Listings: For tech-savvy sellers, flat fee MLS listing services provide cost-effective exposure. Pay a fixed fee (often under $400) to list your property on the Multiple Listing Service, the primary platform most buyers use. However, be prepared to handle showings, negotiations, and paperwork yourself.
  • iBuyers: The Speedy Exit: Cash-for-houses companies like Opendoor offer quick, guaranteed sales, often within days. Expect a lower offer than market value, eliminating traditional selling hassles and uncertainties.
  • Cash Home Buyers: Local cash buyers offer rapid, no-fuss transactions, closing within weeks. Similar to iBuyers, expect a discounted offer, but you skip the listing process and associated expenses.

Conclusion

Selling with a 1% commission realtor sounds tempting in a competitive market. You must weigh factors like pricing, technology, and service before committing. A poor fit can cost you. For maximum savings, consider flat-fee MLS companies like Houzeo, which offers user-friendly tools, expert support, and transparent pricing for a faster, more cost-effective sale.

--

--