How a 1% Commission Realtor Works for Home Sellers: Pros & Cons
- LJ Woodard
- Jul 28
- 9 min read
Updated: Oct 13
Key Highlights
Lower commission rates: A 1% commission realtor offers significant savings compared to traditional agents, often up to thousands of dollars, depending on your home’s sale price.
Real estate agent structure: The listing agent typically earns 1% of the sale price, while the buyer’s agent commission remains traditional.
Home sellers benefit: Sellers can maximize profits in any market under this lower fee model.
Total commission breakdown: Even with reduced fees, the total commission might still reach 3.5 to 4% after adding in the buyer's agent commission.
Listing agent services: Available services may range from basic MLS listings to full-service packages, depending on the agent.
Introduction
Choosing the right real estate commission rate can have a big impact on what you pay when you sell your home. Many people like the idea of using a 1% commission realtor because it will help them save money and pay less for selling their home.
Many sellers ask themselves, Do I really gain more by paying the standard 2.5% to 3% commission to a listing agent? After comparing the options, many home sellers are willing to try a 1% listing agent and protect their equity.
In the next parts, we will talk about the good and bad sides of using a 1% commission realtor, and what you should think about before making your choice.
What is a 1% Commission Realtor?
A 1% commission realtor is a real estate agent or a company that gives you lower commission rates for selling your home. They charge only 1% of the home’s sale price. This is much lower than what usual real estate agents charge, which is between 2.5% and 3%. So, these realtors help you save money when you sell your house.
Sellers need to ask themselves, “What is the process to sell a home, and do agents have any influence over the sale price”? In reality, a listing agent has little to no influence over the final sale price of the home! This means the real function of an agent is to guide you through the home selling process, and a 1% fee seems like a fair amount to facilitate a transaction.
When you hire an agent, you are really hiring a consultant to walk you through the selling process, which includes preparing your home for the market, establishing a listing price that will attract buyers, reviewing seller disclosure, marketing your home, negotiating the purchase contract, reviewing the contract terms, and helping you navigate the process up until the closing of escrow. As an added bonus, many 1% agents typically have more experience than your average agent because they service more transactions.
How Does the 1% Commission Structure Work?
The 1% commission structure is mostly about the listing agent’s fees. Let’s say the realtor lists a home for $750,000 and charges a 1% fee. They would earn $7,500 for that sale. But, the buyer’s agent will still get the usual pay/commission, which is typically between 2.5% to 3%. So, the total commission is often not just 1%. It can go up to 3.5% or even 4% in total commissions. In short, a 1% listing agent can save you on the listing side, but many other fees stay the same.
Typical Services Offered by 1% Agents
The services you get from 1% commission agents are very similar to full commission agents. Many 1% agents strive to provide excellent service at a reasonable price. The aim is to keep fees low but provide great service.
MLS listings: Yes, most 1% agents have the same MLS access as full-price agents, so your home will be everywhere online.
Property marketing: Professional & aerial photos, property floor plans, virtual staging, traditional staging (usually at an extra cost), and interactive 3D tours are also included by many 1% agents.
Disclosures support: Providing the seller with the proper paperwork is also included with most 1% agents
Negotiating the purchase contract: making sure you get the best deal possible is the goal of all agents, regardless of their commission structure. Typically, agents with more experience have better negotiating skills!
Full customer service: Full customer service is the goal of most 1% agents. The goal is to prove that you can sell a home for a fair commission and receive great service.
Companies, like One Percent Listing Group Inc., based out of San Diego, California, will provide you with the same full-service touch you get from other real estate agents. If you’re thinking about selling, you should talk to several agents and compare what services they provide and at what cost. You will find in many cases that the only difference is the commission you will end up paying.
Comparing 1% Commission Realtors to Traditional Agents. The agent's experience is key.
When it comes time to sell your home, one of the first and most important decisions you’ll face is which real estate agent you should hire: a traditional full-commission agent or a low-fee 1% commission realtor.
At the heart of this decision is one key question: How much value does the agent bring to the table for the commission they charge? Both 1% and traditional agents typically use the same tools. Both have access to the MLS, professional photographers, home staging resources, and the standard disclosure packages. So what sets them apart? The answer lies in the agent's experience, transparency, negotiation skills, and total cost.
Regardless of the commission rate, your top priority as a home seller should be hiring an experienced real estate professional. Whether they charge 1% or 3%, the agent's experience matters most.
According to the National Association of Realtors, newer agents typically close 0–5 transactions annually, while experienced agents average 10–20. The more deals you close in escrow on the more seasoned the agent. So finding a skilled and experienced agent is our best bet to navigate through the selling process.
A seasoned agent will offer valuable advice to help prepare your home for the market, recommend a competitive listing price to attract the most buyers, and negotiate skillfully to help you secure the best possible offer.
Unfortunately, some agents often rely heavily on sales pitches to justify higher fees, sometimes exaggerating the effectiveness of their marketing or the impact they have on the final sale price. The truth is, your home value depends on the current market conditions, combined with how well your home is prepared for the market; this largely dictates what buyers are willing to pay.
That’s why more sellers are turning to 1% listing agents like LJ Woodard of OnePercentListings.com. These agents offer full-service support at a fraction of the cost, delivering the same professional marketing, MLS exposure, and real estate guidance as traditional agents. The difference? You keep more of your equity.
In today’s market, hiring a smart, experienced 1% agent gives you the best of both worlds: high-quality service and substantial savings. If you're looking to sell your home efficiently, profitably, and without overpaying, a 1% real estate professional may be the smartest move you make.
Differences in Cost and Potential Savings for Sellers
The big difference in cost between 1% commission realtors and traditional agents is in the commission rate that they ask for. 1% agents usually charge 1% commission. In comparison, traditional agents ask for 2.5–3%. This changes the total commission by a lot.
Factor | 1% Realtors | Traditional Agents |
Commission rate | 1–1.5% | 2.5–3% |
Service level | Basic to limited | Comprehensive |
Total fees | 3.5–4% | 5–6% |
Average savings ($) | Up to $10,000 on $500,000 sale | Minimal |
Many sellers can save a lot of money up front with a lower commission rate and reduced total commission.
Service Levels: Full-Service vs. Discount Brokerages
A big difference between full-priced agents and discount brokerage companies can be minimal to no difference. What really matters is hiring the right agent, and if you can save money on commission, that is just a bonus. Finding an experienced agent to navigate through the transactions should be the seller's goal.
In fact, there are many unskilled agents who charge 2.5%. Finding a dedicated and experienced agent is the key.
Motivations Behind Offering a 1% Commission
Why would a real estate broker agree to work for only 1% commission?
In short, the answer is a smart way of conducting business that benefits the consumer. The traditional way agents find business is with large marketing budgets (typically funded by high commissions). Hosting endless dinner parties and soliciting everyone you meet with the goal of getting someone to pay you the traditional 2.5% commissions.
Most sellers seeking a 1% agent can quickly find one online with a simple Google search, which eliminates the standard way of conducting business and helps connect a seller who doesn't want to overpay to sell their home with a qualified agent.
Many 1% agents are independent brokers, so they don’t give away a large percentage of their commission to a corporate broker (the middleman), they simply pass the savings to their consumer (the seller).
Targeting Highly Marketable or High-Value Homes
Agents who offer a 1% commission usually work with high-value markets like San Diego, San Francisco, and New York City. In these communities, you will find many agents selling homes at a lower commission fee. In San Diego, you can find many agents willing to sell your home for a great price.
If you sell a high-value home, you can save more money with the lower fee, and the realtor still earns a reasonable amount. For example, if you sell your house for one million dollars, there will be $10,000 in commission at that 1% rate, which is a $15,000 savings compared to a 2.5% agent.
Advantages of Using a 1% Commission Realtor
Choosing 1% commission realtors can help people save money, since they offer lower commission rates. This means you pay a lower listing fee and can keep more profit from the sale. It is a good option for anyone selling a home in any market.
1% agents also give sellers great marketing and MLS services. In fact, 1% agents use the same MLS service as the full commission agents. So your home will be visible to all buyers!
How to Evaluate and Choose the Right 1% Commission Realtor
Choosing the best agent means you need to look closely at what each service package offers and at the agent’s track record. It helps to start by finding trusted agents and then comparing what they are offering and commission rates.
Check if the agent has a good understanding of the local housing market. This will help with setting the right price for your home to attract buyers.
When you look at possible agents, pay attention to reviews, past sales, and different service levels. To find the right choice, you should do the following:
Read online reviews. This helps you know how the agent performed for prior clients. Reviews are good to see, whether good or bad.
Look at their past sales history. Make sure they are selling at least 10+ homes a year.
Check which service packages the agent offers. Decide if they fit what you want for your property and your goals.
Referrals are king! Try to get referrals from friends, neighbors, and family members who have used experienced agents in the past.
When you bring together agent reviews and their skills, you can make a good decision and pick the right agent to help you sell your home.
Conclusion
To sum up, working with a 1% commission realtor can help home sellers save a lot of money. You still get the Full services you need for real estate, typically at a lower cost.
It is important to look at each realtor’s past work and what services they offer. This can help you make a good decision when picking an agent.
If you want to see how a 1% commission realtor in San Diego can help you, reach out now - (619) 794-9966 to talk about your choices.
Sell Your Home By San Diego County’s #1 full-service low-fee/discount broker
With over 500 homes sold and 100+ Zillow reviews, I take pride in being San Diego County’s #1 full-service low-fee/discount broker.
If you're thinking about listing your home, I can save you up to 60%+ in commissions compared to traditional agents, all while providing excellent service and expert guidance.
I would love the opportunity to assist you with your real estate needs.
📩 Email: LJ@LJWoodard.com
📞 Call/Text: (619) 794-9966
🗺 Get Direction: 7900 Mission Manzana Pl, San Diego, CA 92120, United States
Thank you for your time,
LJ Woodard,
One Percent Listing Group Inc.
1% Realtors FAQ's
Do I pay only 1% total commission?
The total commission is usually more than 1% because you may still have to pay the buyer’s agent's commission and other costs, such as escrow and title fees. Even if the listing agent earns 1%, the total fee could be about 3.5–4%. I recommend asking your 1% commission realtor for a breakdown of the total cost.
Will I still need to pay a buyer’s agent commission?
Yes, in many cases, the sellers pay the fee for the buyer’s agent. It is usually about 2.5% to 3%. When you add this to the listing agent's fee, you get the total commission. These fees are part of the costs that come with your home sale and listing.
Are all 1% realtors licensed and experienced?
No, not all 1% agents (or traditional full-priced agents) are experienced. Please review the agent's sales history.
Is a 1% commission realtor right for every home sale?
The 1 % commission structure works best in states with higher-priced homes. In lower-priced commutes 1% agents may be harder to find.
How much can you save with a 1% real estate commission?
How much you save depends on your home’s sale price. For example, if you sell your home for $950,000 and pick an agent with lower commission rates, a 1% agent instead of a traditional agent, you can save approximately $14,000+ more in seller profits (compared to a 2.5% agent).
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