How 1% Commission Agents Save Sellers Thousands

Selling your home doesn’t have to mean losing a big chunk of your profit to agent fees. Most real estate agents charge 5-6% in commissions, which can cost $30,000 on a $500,000 home. But 1% commission agents offer the same services for a fraction of the cost.

For example, on that same $500,000 home, a 1% agent could save you $12,500, leaving more money in your pocket.

Here’s why 1% agents are gaining popularity:

• Lower fees: Instead of paying 2.5-3% to the listing agent, you pay just 1%.

• Full service: They still handle MLS listings, professional photos, marketing, and transaction management.

• Buyer agent cooperation: You may still offer 2-3% to the buyer’s agent, ensuring smooth transactions.

• Savings for sellers: On a $750,000 home, you could save over $18,000 compared to traditional commissions.

This model is ideal for sellers in strong markets, tech-savvy homeowners, or those looking to maximize their equity. Whether you’re moving up, downsizing, or selling a second home, a 1% agent can help you keep more of your hard-earned money.

How Standard Real Estate Commissions Work

In the U.S., the typical real estate commission structure may involve a fee of 5% to 6% of the home's final sale price. This fee is split between the listing agent, who represents the seller, and the buyer's agent, with each usually receiving 2.5% to 3%.

Due to a recent ruling, the industry is shifting toward having buyers cover their own agent fees. However, this is not always the case - and even when it is, the seller is still responsible for their own agent fees (typically 2.5% to 3%).

These commissions are deducted from the sale proceeds at closing, which reduces the seller's net profit. Understanding this process highlights how quickly these fees can add up.

What Standard Commissions Cost Sellers

To see how these percentages translate into dollars, consider this: a 6% commission on a $300,000 home totals $18,000. On a $500,000 home, it’s $30,000, and for a $750,000 home, it jumps to $45,000.

These fees directly cut into the equity sellers have built over time, leaving them with less cash after the sale.

Regional differences also impact commission costs. In areas with high property values, sellers may pay $36,000 or more in commissions. Because commissions are tied to the home’s price, they rise proportionally with market values.

Timing can also complicate things. Since commissions are paid at closing, sellers who need funds for their next home purchase might face cash flow issues. This can push them toward expensive solutions like bridge loans to cover the gap.

Why Sellers Want Lower-Cost Options

The demand for lower-cost alternatives has grown as sellers become more aware of the actual cost of commissions. Technology has shifted the way buyers look for homes, with most starting their search online. As a result, some of the traditional tasks handled by agents have lessened in importance.

Many sellers now take on responsibilities like staging and marketing themselves. When sellers are already managing parts of the process, paying full commissions can feel unnecessary.

Market dynamics also play a role. In competitive seller’s markets, where homes sell quickly and often attract multiple offers, paying the same commission for a house that sells in days versus one that takes months feels disproportionate.

As home prices have climbed across the country, sellers are more focused on keeping as much of their equity as possible. This is especially true for first-time move-up buyers who need every dollar for a larger down payment on their next home.

The growing push for transparency in real estate has also made sellers more aware of what they’re paying for. When commission fees are broken down into specific services, many realize they’re paying for things they don’t need or could handle on their own with a little guidance.

This awareness has led to a demand for customizable service models that let sellers choose the services they want while saving on fees. Instead of sticking to the traditional full-service, full-commission approach, sellers are exploring options that provide professional support at a cost that better matches the work involved. These cost concerns are driving the search for more efficient and affordable commission structures.

How 1% Commission Agents Work

The 1% commission model offers a fresh approach to real estate fees, significantly lowering costs for sellers while still providing essential professional services. Instead of the typical 2.5% to 3% fee charged by listing agents, you pay just 1% of your home's sale price.

These agents focus on delivering results by prioritizing high-impact services like professional photography, optimizing your MLS listing, and managing transactions efficiently. By leveraging technology and streamlining their processes, they ensure your home gets sold effectively - without unnecessary extras.

Understanding the 1% Fee Structure

Traditional agents often charge higher fees, but 1% agents focus solely on the activities that directly sell homes. However, you may still want to offer compensation to the buyer’s agent, which typically ranges from 2% to 3%, depending on your local market.

In this model, the total commission drops to 3.5% instead of 6%, with 1% going to the listing agent and 2.5% to the buyer's agent. This setup keeps buyer agents satisfied while saving you a significant amount.

All commissions are paid at closing, directly from the sale proceeds. This means more of your hard-earned money stays with you once the transaction is complete.

Which Sellers Benefit Most from 1% Agents

The cost savings offered by 1% agents make this model particularly appealing to a variety of sellers with specific needs and priorities:

• Cost-conscious homeowners: If you’re focused on maximizing your sale proceeds, this model helps you keep more money for your next home or other priorities.

• Homes in strong markets: Properties in high-demand areas that sell quickly with multiple offers often require less marketing effort, making the 1% model a perfect fit.

• Tech-savvy sellers: If you’re comfortable handling some coordination tasks yourself, you can save even more by working with a 1% agent.

• Move-up buyers: Saving on commissions means more money for your next home purchase - potentially allowing you to afford a larger or better-suited property.

• Homes needing minimal marketing: If your property is in great condition, priced competitively, and located in a desirable area, you’re likely to benefit from this streamlined approach.

Benefits of Using a 1% Commission Agent

Working with a 1% commission agent isn’t just about saving money - it’s about improving your overall selling experience. These agents offer a range of advantages that go beyond lower fees, helping you keep more cash in your pocket while still receiving top-tier service.

Major Cost Savings for Sellers

The most obvious perk? Big savings on commission fees. Choosing a 1% agent instead of a traditional 3% listing agent can leave you with a lot more money to work with after your home sale.

These savings can be a game-changer. They could cover moving costs, fund home upgrades, or even go toward a down payment on your next property. This financial flexibility also lets you adjust your pricing strategy to stay competitive in the market.

Staying Competitive in the Market

Lower commission fees give you pricing flexibility, which can make your home more appealing to buyers. Instead of inflating your asking price to cover higher commission costs, you can price your home more competitively while still walking away with the same net proceeds.

This flexibility is especially useful in competitive markets where buyers have plenty of options. You could price your home $10,000 to $15,000 below similar listings and still come out ahead after commissions. A more attractive price often leads to quicker sales and multiple offers, giving you an edge in a crowded market.

Some sellers use their commission savings to offer buyer incentives like covering closing costs or including warranties, which can further speed up the sale. Others invest in pre-sale improvements such as professional staging, fresh paint, or minor upgrades. These enhancements, funded by the savings, often make homes more appealing and increase their market value.

Professional Services at Lower Cost

Choosing a 1% agent doesn’t mean compromising on service. In fact, many 1% agents offer the same professional services you’d expect from traditional agents, but with a more efficient and streamlined approach.

Most 1% agents provide full MLS listing services, ensuring your property gets maximum exposure on platforms like Zillow, Realtor.com, and local MLS databases. They also include professional photography and marketing materials as standard. Some even go the extra mile with virtual tours, drone photography for unique properties, and polished listing descriptions.

When it comes to transaction management, Houwzer’s 1% agents don’t cut corners. We handle contract negotiations, inspections, appraisals, and closing procedures with the same level of expertise as traditional agents. We also leverage technology - like digital tools for document management and scheduling - to make the process smoother and more efficient for their clients.

Importantly, working with a 1% agent doesn’t affect cooperation with buyer’s agents. They still maintain professional relationships and ensure seamless transactions, so the reduced listing commission won’t impact the quality of your sale.

What 1% Agent Networks Provide

Some sellers hesitate to work with 1% agents, fearing that lower fees might mean cutting corners on service. But reputable 1% agent networks offer a full range of services that rival those of traditional brokerages. These networks are designed to provide sellers with expert guidance while keeping costs significantly lower.

The savings from a 1% commission don’t come at the cost of quality or support.

Services You Get from 1% Agents

Full MLS listing and maximum visibility
Your property will be listed on the Multiple Listing Service (MLS), ensuring it appears on major real estate websites like Zillow and Realtor.com. This guarantees broad exposure to a wide pool of potential buyers.

Professional marketing and photography
Expect high-quality property descriptions, professional photos, and additional tools like virtual tours or video walkthroughs to showcase your home in the best light.

Transaction management from start to finish
From contracts and inspections to appraisals and deadlines, your agent will handle all the details, ensuring the process moves smoothly and efficiently.

Accurate pricing and market analysis
Using competitive market analyses (CMAs) and insights into local trends, 1% agents help you set the right price to attract buyers while maximizing your return.

Showing coordination and buyer communication
Agents manage scheduling for showings, collect feedback from potential buyers, and maintain professional communication with buyer's agents to keep the process seamless.

Addressing Service Quality Concerns

Even with lower fees, these networks maintain high service standards. Established 1% brokerages rely on efficiency and smart processes to deliver excellent results.

Technology-driven efficiency
Digital tools like electronic signatures, document management systems, and automated scheduling streamline the process, saving time while maintaining a high level of service.

Volume-based business models
By working with a larger number of clients, 1% agents can spread their costs across many transactions. This allows them to offer competitive rates without compromising service quality.

Professional licensing and ethics
1% agents meet the same licensing and ethical standards as traditional agents. They complete the same education, pass the same exams, and adhere to strict professional guidelines.

Houwzer is a prime example of how a 1% commission model can deliver full-service real estate support. Our agents provide expert pricing strategies, transaction management, professional marketing (including signage and video tours), and a "free to list + 1% at settlement" model. This ensures sellers receive the same professional care they’d expect from any top-tier brokerage.

And just like traditional models, 1% networks maintain cooperation with buyer agents.

How to Pick the Right 1% Commission Agent

Saving money on commission fees is appealing, but not all 1% commission agents deliver the same level of service. Choosing the wrong agent could cost you more in the long run if corners are cut or expertise is lacking. The trick is to know what to look for and find an agent who offers professional service at a fraction of the typical cost.

What to Look for When Choosing an Agent

Start with proper licensing and credentials. Any agent you consider should have a valid real estate license in your state and work with a reputable brokerage. You can confirm this through your state's real estate commission website. Affordable fees shouldn’t mean compromising on professionalism.

Local market expertise is a must. The agent should have a solid track record in your area, backed by recent sales data and a clear understanding of neighborhood trends. For instance, an agent who has successfully sold multiple homes in your zip code is likely to deliver better results than one unfamiliar with your market.

Client reviews and testimonials are another key indicator of quality. Check sources like Google Reviews, Zillow, or the brokerage’s website to see what past clients have to say. Pay close attention to feedback about communication, marketing efforts, and how smoothly the process went from listing to closing.

Transparency in services is critical. A good 1% agent will provide a clear breakdown of what their fee includes and whether any additional costs apply. Be cautious of agents who make vague promises without explaining how they achieve results at a lower rate.

Marketing capabilities can make or break your sale. Ask to see examples of their work, such as listing photos, descriptions, and promotional materials. High-quality agents will offer professional photography, compelling descriptions, and strong MLS exposure to attract serious buyers.

Transaction support systems are another sign of a professional operation. Look for brokerages that use transaction coordinators, digital tools for managing documents, and maintain consistent communication throughout the process.

Agents who meet these standards can deliver real value. One example of such a brokerage is Houwzer.

Why Houwzer Stands Out

Houwzer is a standout option that checks all the boxes. Our innovative model combines cost savings with full-service support, offering a "free to list + 1% at settlement" approach. Sellers don’t pay anything upfront - commission is only due when the home is sold.

Our service includes comprehensive MLS exposure, ensuring your property appears on major platforms like Zillow and Realtor.com, giving it the same visibility as traditionally-listed homes. This broad reach helps attract more potential buyers.

Houwzer also provides top-notch marketing support, including professional photography, premium signage, and video tours to showcase your property. These tools help your listing stand out and can lead to quicker sales at strong prices.

With licensed Realtor guidance, Houwzer ensures that you’re supported every step of the way. From pricing analysis to coordinating showings and managing paperwork, their team handles all the details under their unique payment model.

They also offer a flexible buyer commission structure, allowing sellers to remain competitive. Houwzer provides rebates on buyer commissions above 1%, giving you control over your total costs while still working effectively with buyer agents.

This all-encompassing approach allows sellers to save thousands without sacrificing the full-service experience.

Conclusion: Save Thousands with 1% Agents

Selling a home the traditional way can come with hefty fees. For instance, on a $600,000 home, standard real estate commissions might cost you upwards of $18,000. But with a 1% commission agent, that number drops to just $6,000 - leaving an extra $12,000 in your pocket.

What’s the catch? Actually, there isn’t one. These lower fees don’t mean you’re sacrificing essential services. A 1% agent still provides everything you’d expect - MLS exposure, professional photography, strategic marketing, and full transaction management. The difference is in their business model, not their expertise. Sellers at every price point can benefit, whether it’s saving $7,500 on a $300,000 home or $25,000 on a $1 million property. That extra cash can go toward your next home, paying down debt, or other financial goals.

Many brokerages, like Houwzer, take it a step further with our "free to list + 1% at settlement" approach. This means no upfront costs - you only pay when your home sells. It’s a risk-free way to list your property while still receiving full professional support from start to finish.

If you’re considering this route, it’s important to choose the right agent. Look for licensed professionals with local market knowledge, strong reviews, and clear, transparent fee structures. The best 1% agents combine meaningful savings with the expertise needed to sell your home quickly and for top dollar.

For sellers who want to hold onto more of their hard-earned equity without cutting corners, exploring trusted 1% commission networks is a smart move that’s changing how homes are sold.