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 | $349 Flat Fee | ✅ | ✅ | ✅ |
| SimpleShowing | 1% Commission | ❌ | ❌ | ✅ |
| Houwzer | 1% Commission | ❌ | ❌ | ✅ |
| Prevu | 1.5% Commission | ❌ | ❌ | ✅ |
| Redfin | 1.5% Commission | ❌ | ❌ | ❌ |
Reviews: Top 1 Percent Commission Realtors
1. Houzeo.com
#1 Discount Real Estate Service
Listing Fee: $399+$350 at closing4.9/5
Houzeo is a top technology-driven real estate platform. It offers 4 different packages:
- Bronze Package ($399 + $350 at Close): List your house for 6 months. You can upload 24 house photos.
- Silver Package ($399+0.5% at Close): List your home for 6 months and post maximum photos. Unlimited open houses and listing modifications are included in this package.
- Gold Package ($429+0.5% at Close): This package offers all the benefits of the Silver package, as well as licensed broker assistance, contract review, and more.
- Platinum Package ($449+1% at Close): This package offers virtual full-service support with a licensed broker. You can list for 12 months. Brokers assist you in negotiations, disclosures, and closing.
👉 Our Take: We recommend Houzeo to all home sellers. The company has a stellar 4.9/5 customer rating. It also provides coverage in 47 states + DC, making it one of the few services with nationwide reach.
» Houzeo Reviews: Houzeo is 100% online. You can finish listing formalities within 60 minutes.
These are the key features that make Houzeo one of the top discount real estate brokers:
- Significant Commission Savings: You will pay just a small flat fee to list on the MLS. On average, Houzeo home sellers save $12,511.
- No Hidden Fees: All costs are disclosed upfront so you don’t have to worry about hidden charges.
- Near Nationwide Coverage: Houzeo operates in 47 states and DC, with ongoing plans for expansion.
- Max Exposure: Houzeo packages give you access to renowned MLS companies.
- Advanced Technology: Eliminate the hassle of extensive paperwork. E-signature and online forms make house listing quick and easy.
- 5-star Customer Service: Dedicated customer support addresses your every concern easily.
- Mobile App: Houzeo’s mobile app lets you manage showing requests from verified buyers and buyer agents. You can either accept, reject, or reschedule showings at your convenience.
- Home Value Estimator: Houzeo’s Home Worth Estimator is online and quick to know the FMV of your home. It provides free home value estimate within 30 seconds.
There are no dealbreakers with Houzeo.
» Houzeo Reviews: Houzeo is rated “Excellent” by 10,000+ happy customers on Google Reviews and Trustpilot!
Houzeo Reviews: With over 10,100+ happy customers, Houzeo is the most trusted discount real estate broker.
Houzeo is a Flat Fee MLS listing service that lets you sell your home without any agent commission. It offers the best combination of maximum savings, advanced technology, 5-star customer support, and listing exposure.
Houzeo’s Bronze package is priced at $379. The Silver package is priced at $399, and the Gold package is priced at $379 + 0.5% (minimum $999) at closing. The full-service Platinum package is priced at $349 + 1% (minimum $999) at closing.
2. SimpleShowing
1% COMMISSION
Commission: 1% of Sale Price4.9/5
SimpleShowing is a licensed full-service brokerage in Florida, Georgia, and Texas. They offer the following packages:
For Homesellers:
- 1% Listing Fee: This package includes full-service support, with licensed agents handling all aspects of the sale. They also provide marketing, home showings, and negotiations to finalize the sale.
For Homebuyers:
- $5,000+ Towards Closing Costs: This package includes full-service support. Licensed agents will handle all aspects of the sale, including marketing, home showings, and negotiations to finalize the sale.
👉 Our Take: SimpleShowing is a good option if you are selling a high-end home. However, its $5,000 minimum listing commission makes it more expensive for lower-priced homes than other brokers.
Here’s what stands out about SimpleShowing:
- Market Exposure: Homes are listed on the MLS and various national websites, including Realtor.com, Zillow, Trulia, etc.
- No Upfront Costs: The listing fee is only paid at closing, deducted from the sale profit.
- Professional Guidance: Offers pre-listing consultation, ongoing support, and contract assistance throughout the selling process.
- In-House Photography: They have an in-house professional photographer to get the best photos and videos of the home for the MLS.
SimpleShowing has the following downsides:
- Minimum fees: Homes under $500,000 don’t benefit from the 1% listing fee because of a minimum commission fee requirement of $5,000.
- Limited Agents: They are a small team so you do not get to choose or change the agent in case of disputes.
- Limited Coverage: They have agents only in 8 cities: Miami, Dallas, Atlanta, Orlando, Tampa, Savannah, Fort Lauderdale, and Fort Worth.
SimpleShowing has 4.9 out of 5 stars on Google from over 110 reviews.
SimpleShowing offers its services in Florida, Texas, and Georgia. Its 1% listing fee gets you a home valuation, professional photos, and paperwork assistance.
SimpleShowing has a 5-star rating and a team of experienced local agents. They help you manage your real estate transaction from listing to closing.
3. Houwzer
BEST FOR LOW VALUE HOMES
Listing Fee: 1% of Sale Price4/5
Houwzer is a full-service discount Realtor. It offers:
- 1% Commission: It charges a fixed 1% listing fee on the total home sale price. That’s huge, for a $500,000 home, you’ll pay around $5,000. This 1% fee includes the charges for signs, photography, open houses, negotiation, etc.
👉 Our Take: The 1% commission is a little steep for MLS access. You can consider a Flat Fee MLS alternative for more savings and better tech.
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 private showings as you want.
- Proprietary Software: You can organize your sale easily with Houwzer’s tech tools
Here are some limitations we found with Houwzer:
- Not Ideal for High-Value Homes: Houwzer’s model 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 one-on-one attention.
Houwzer has an average rating of 4.0 out of 5 stars on Yelp.
» Houwzer Reviews: Check out our detailed reviews on Houwzer.
Houwzer was launched in Philadelphia, PA, in 2014. Its easy-to-navigate dashboard lets you chat with the agent and track your listings. Moreover, their add-ons, like photography and closing assistance, make your home-selling journey easy.
However, Houwzer does not provide any personalized assistance. Their agents are salaried and handle multiple clients at once.
4. Prevu
HIGHLY QUALIFIED AGENTS
Listing Fee: 1.5% of sale price
5.0/5.0
(601 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.
- 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 Prevu’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.
- Lack of 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 Real Estate is a licensed brokerage located in New York. It has highly qualified agents and over 400 positive reviews on Google.
However, Prevu has a small team of agents who deal with many clients. This limits your ability to select an agent of your choice.
5. Redfin
BEST TECH-ENABLED BROKERAGE
Listing Fee: 1% of Sale Price4.2/5
Redfin does not disclose its pricing on its website. Sellers will have to pay common closing costs.
- It offers 0.5% buyer’s rebate. To avail this, you’ll have to buy and sell with them.
👉 Our Take: Redfin offers 1 rebate option but with a strict clause. While, other real estate companies are willing to offer a higher rebate.
» Redfin Reviews: The reality of the buyer’s rebate.
Here are some advantages of choosing Redfin:
- Advanced Technology: With 3D walkthroughs and 40+ filters to narrow down your search, the Redfin app makes it easy to find the right home from anywhere.
- Paired With Local Agents: Local agents know their market better. This can help you secure a good deal.
- Home Tour: You can see updated listings every 5 minutes on their website. You can also schedule a home tour for the same day.
- Nationwide Coverage: Redfin covers 80+ markets in the US.
Here are some limitations we found with Redfin.
- Strict Rebate Criteria: Clients who sell and buy with Redfin within one year get a rebate of 0.5%.
- No Freedom in Agent Selection: You get an agent assigned automatically without having a 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 additional services.
- 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 is a licensed broker and covers 80+ markets in the US. It provides an elaborate listing agreement with a marketing plan for your home. However, this agreement specifies a long 18-day timeframe for listing your property on the MLS.
Additionally, some customers have expressed concerns about the availability and professionalism of their agents.
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.
Frequently Asked Questions
Should I use a 1% Realtor?
If your main goal is to save money on commissions, a 1% Realtor can be a compelling choice. It is important to interview multiple realtors before making a decision. Ask them about their experience, commission rates, and marketing plans.
What commission do most Realtors charge?
The average real estate commission is 6% of a home's purchase price. This is split evenly (3 percent each) between the buyer's agent and the seller's agent.
Is 1% a good real estate agent fee?
A 1% real estate agent fee is considered a competitive and cost-effective option. It can provide significant savings compared to the traditional 2.5% to 3% commission. However, the suitability of a 1% fee depends on the type of realtor you choose. It also depends on their level of services and local market exposure.
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