A Beginner's Guide to Understanding the 1% Listing Model

Key Highlights

• The 1% listing model in real estate allows home sellers to pay lower commission fees, typically saving thousands compared to traditional rates.

• This model involves working with a listing agent who offers reduced fees while still providing full agent services.

• Sellers can benefit from significant savings based on their property’s listing price and sale price, often cutting down total commission costs.

• The 1% listing model is gaining traction in all markets, with increasing acceptance by sellers across the country.

Transitioning to a deeper understanding, let’s explore how this model works and its impact on the real estate industry.

Understanding the 1% Real Estate Listing Model: A Complete Guide

Finding your way in the world of real estate is not always easy. There are a lot of commissions and fees to think about. If you are a home seller who wants to keep more of your money, the 1% listing model can look good.  But you may wonder how this listing model works and if it will be right for you.

Let me explain it step-by-step so you can see if it fits your needs.

What Is the 1% Listing Model?

The 1% listing model brings a new way to do business in real estate. With this model, people who sell homes pay the listing agent only a 1% commission rate. This is a lot lower than the usual fee of 2.5–3%. Sellers may still need to pay the buyer’s agent, too, but they can save thousands on the listing side. The fee is based on the final sale price of the home.

Defining the 1% Listing Model in Real Estate

When you sell your home, the 1% listing model lets you work with a listing agent who takes a much lower fee. Many listing commission fees can be as high as 3%, but with a 1% agent, you will save over 60% in listing fees. Yes, you will save a lot of money.

Many 1% agents provide the same services as full-priced agents! You’ll have your home on the MLS, including professional photos, provide you with seller disclosures, a for sale sign, a digital lockbox, and consult with you from the beginning to the end of the selling process! 

The most important factor is hiring an experienced agent (whether it's a 1% fee agent or a full fee agent). There are many experienced 1% listing agents (often because they handle more transactions than the average agent). They understand the real estate market and trends and can guide you successfully through the selling process while saving you thousands. 

How It Differs from Traditional Commission Structures

Traditional real estate listing commission setups usually mean the seller pays about 2.5-3%% of the total sale price. You received similar services as a 1% agent, but pay about 60% more in fees.  Most of these fees go to overhead and franchise fees and do little for the consumer or the home-selling process. 

The 1% listing model stands out because it uses lower commission rates, mainly on the listing agent side. Here, sellers may pay about 2.5 - 3% in total commission. Check the table below to see the big differences between these ways of handling real estate sales.

Commission Type	Traditional Model	1% Listing Model
Listing Agent Fee	2.5–3%	1%
Buyer’s Agent Fee	2.5–3%	2.5–3%
Total Commission	~5%	~3.5%

What are the benefits of choosing a 1% real estate listing service?

Choosing a 1% real estate listing service offers significant savings on commissions while still receiving professional and full service support. Sellers benefit from expert marketing, enhanced visibility, and access to multiple listing services (MLS). This model empowers homeowners to maximize profits without sacrificing quality service in their home-selling journey.  Ultimately, the benefit is that you will save a lot of money if you hire a competent and experienced 1% listing agent! 

Why Home Sellers Are Considering the 1% Listing Model

More and more home sellers now go with the 1% listing model to cut costs when selling real estate. Discount agents are in high demand. 

With high home prices, sellers want a better deal when they sell their homes. The 1% model seems like a reasonable deal for the sellers and for the agent providing the service.  

Potential Savings on Realtor Commissions

If you sell a home with a sale price of $850,000, reducing the listing fee from 2.5% to 1% can help you keep $12,750 in your pocket by paying less in commission fees.

In places where sale prices go over $1+ million, having lower commission fees can help you cut thousands from your costs.

But, even though these lower fees sound good, you should make sure the service quality is still good. It helps to see if the listing agent gives you full support, even with the lower fees.  Find an experienced local 1% agent and ask for an interview to see if you like the agent and their listing program.  You might find you can hire an experienced local agent and save lots of money!

Growing Popularity and Market Trends

The 1% listing model is becoming more popular because sellers feel they are getting gouged by some realtors. Many people who own a home are thinking about working with discount agents. This helps them spend less money on fees when they sell.

Trends show that more people like this model, especially in San Diego. That’s because median home sales prices (median home price in San Diego is $950,000) are very high, and sellers simply think the current commission structure is outrageous.  Sellers want to find ways to sell a home with a fair commission. All this makes the 1% listing model a good option for people who want to save.

These changes are part of a bigger push in the industry for better and fairer pricing. After rules changed with the NAR settlement, people now look for both better deals and good service from commission agents. 

Who Should Consider a 1% Listing Agent?

Listing a home for $1,000,000 with a 2.5% commission would cost you $25,000, and that doesn’t include the buyer's agent fee, escrow, title, and other closing costs!  So, selling a home is VERY expensive. The main question sellers should ask themselves is a full price agent worth the cost?  Many sellers are starting to feel that high commission agents just charge too much, and the 1% agent makes a lot of sense. The real estate world is very transparent and modernized, and buyers and sellers have all the necessary information at their fingertips to make an informed decision.

Beginner’s Guide: Getting Started with the 1% Listing Model

Exploring the 1% listing model starts with you knowing what you want from the real estate sale. You should look into the local market to see how lower commission rates work and what potential savings you can get. It is a good idea to plan your budget and decide how much to put in for the best possible outcome. Working with experienced agents who use this listing model can make the home selling process easier. This helps the deal move quickly and smoothly.

Key Questions to Ask Before Choosing a 1% Listing Agent

Choosing the right 1% listing agent like LJ Woodard with One Percent Listing Group Inc. based in San Diego, California, requires you to ask a lot of questions.

Make sure you ask about their experience with the current market. This shows if they know about the pricing and trends in your area. Find out what kind of services they offer. You can ask if they offer professional photos, MLS access, virtual tours, how they handle marketing, and negotiation. 

Ask them to explain how they charge and about their commission structure. This can help you understand potential savings, so you don't spend more than you have to. Agents who answer questions with confidence and clarity can make the listing and selling process much easier for you.

Step-by-Step Guide to Using a 1% Listing Agent

Choosing the right listing agent is key when using the 1% model for home sales. First, look into local 1% listing agents and check how their services and fees compare. You should talk to more than one agent. This helps you see who has experience selling homes in your area. Make sure they know about your pricing goals. You also need to look at the marketing plans they have, like using virtual tours and exposing your home on the MLS.

Step 1: Research Local 1% Listing Agents

Finding a good local 1% listing agent like LJ Woodard is key to helping you get the most from your home sale. Start by going online and using websites that show agents who work with reduced commission listings. Look at reviews and sales history. Their reviews and past transactions can tell you a lot about their experience and integrity.

Step 2: Compare Services and Fees

When you look at the 1% listing model in real estate, it is important to check all your options. Every real estate brokerage offers different services that can change your total commission. Make sure to see what each listing agent includes with their fee. It is important to understand the level of service you get for your money, so you can get the best possible outcome. 

Step 3: Interview and Evaluate Agents

Talking with possible agents is a key step when you pick the right listing agent for your real estate needs. Get ready with questions about how well they know your local market, and the type of comparative market analysis (CMA) they use. You also want to know about the way they interact with people, how quickly they reply, and what plans they have to show your home to potential buyers, if they don’t have a buyer's agent. Looking at all these things helps you make a good choice. This will help you and the agent work well together and get the best possible outcome for your listing.

Step 4: Prepare Your Home for Sale

Getting your home ready to sell takes good planning and the right steps. Start by having your agent complete a comparative market analysis (CMA). This will help you find the best listing price that matches the local market. Prepping your home for sale is crucial.

Meeting with your agent to view your home and come up with recommendations to make your home look its best. Work on your home’s curb appeal by fixing up the yard, decluttering, cleaning, and completing small repairs is essential. You can also stage your home to help buyers see your home in its best light! 

Use high-quality pictures and offer virtual tours. This helps your listing stand out in the competitive market. 

Step 5: List and Market Your Property

Creating a good listing for your property means you need to show off its special qualities and features and use the right tools to reach potential buyers.  Start with high-quality photos, virtual tours, and write detailed descriptions that highlight the home features and upgrades. Using the Multiple Listing Service (MLS) to list your home is a must. Taking this active approach helps the home stand out to more buyers in a competitive market and can lead to the best possible outcome for the sale.

Step 6: Review Offers and Negotiate Terms

An experienced agent can help you analyze your offer and break down the essential terms like contingencies, concessions, and timeframes, which can seem overwhelming to a seller. Understanding the contract subtleties is important if you want the best possible outcome. Work with your listing agent to decide on the best way to counter or accept offers. 

Risks and Limitations of the 1% Listing Model

Choosing a lower commission with the 1% listing model can help you save on commission fees.  LJ Woodard, based out of San Diego, California, has over 500 homes sold and 100+ Zillow reviews, He takes pride in being San Diego County’s #1 full-service low-fee/discount broker. You will be hiring an experienced full service agent at a fair price.

Meet LJ Woodard – The 1% Realtor Who’s Changing the Game

LJ Woodard, lead agent at One Percent Listing Group Inc., believes that homeowners deserve to keep more of their equity, especially in today’s competitive real estate market.

With over a decade of local real estate experience, LJ offers:

• Transparent pricing

• Personalized service

• Proven sales strategies

• Fast results and top-dollar outcomes

Why Sellers Love Working with One Percent Listing Group Inc.

•  Full-Service Representation

•  No Hidden Fees

•  Local Expertise

•  Aggressive Marketing

•  Stress-Free Selling Process

•  Thousands Saved in Commission

Conclusion

Using the 1% listing model can be a good option for all home sellers and at all price points.  Finding an experienced agent is key in the selling process!

Ready to Save Thousands on Your Home Sale?

Choose LJ Woodard with One Percent Listing Group Inc.

•  Keep more of your equity

•  Get full-service representation

•  Sell faster and smarter

👉 Call Now: (619) 794-9966

👉 Schedule Your Free Home Valuation

👉 Contact LJ Woodard Today

FAQ About the 1% Listing Agent Model

Will I still need to pay a buyer’s agent commission?

In most cases, yes. Whether you list your home with a full-priced agent or a 1% agent, you may still end up paying the buyer’s agent a commission. The buyer's agent's job is to represent the buyer throughout the entire buying process.  In most cases, the buyers will submit their offer and request the seller to pay the buyer's agent fee as one of the terms in the contract. This buyer agent fee is negotiable, but in many cases, the seller will end up paying this buyer agent fee, or the buyer may withdraw their offer.  

How much can I realistically save with this model?

With the 1% listing model, you can save a lot of money. The savings can go from thousands to tens of thousands when compared to the usual commissions. If you are comparing a 1% agent to a 2.5% agent, the savings are about 60%!  If the home sale price is $950,000, you would save $14,250 in commission. It's a lot of money! 

Is the 1% listing model available everywhere in the US?

Many realtors are switching to the 1% listing model because sellers are demanding better terms.  Many agents see that the writing is on the wall and are changing their listing fees to something that is fair, attracting more sellers. The 1% listing model is becoming more common in many markets, especially within markets with higher price points. Your best bet is to Google search for “1% real estate agent San Diego”, or “ low commission realtors San Diego” to see what realtors are offering lower commissions!  

Are 1% listing agents legit?

Yes! Agents like LJ Woodard at One Percent Listing Group Inc. are licensed professionals offering full-service real estate solutions, just at a better rate.

What’s the catch with 1% commission?

There’s no catch. The 1% covers your listing agent’s fee. You’ll still need to offer a standard 2-3% to the buyer’s agent, but your total commission is significantly lower.

Do I get less service?

Not at all. LJ Woodard provides everything a traditional agent does—professional marketing, open houses, negotiation, and transaction management.

Why don’t all agents offer 1% listings?

Many brokerages are tied to legacy commission models. One Percent Listing Group Inc. was created specifically to give modern homeowners a smarter alternative.