In a real estate market where hidden fees and hefty commissions often cloud the home buying and selling process, a growing number of people are looking for smarter, more financially friendly alternatives. One such solution that’s gaining traction is the 1 commission real estate agent. This model challenges traditional commission structures and aims to preserve more value for homeowners and buyers alike. But what is it, how does it work, and should you consider it for your next move? Whether you’re selling a beloved home or buying your first one, understanding this model can help you make savvy, informed decisions that benefit your bottom line.
The conventional real estate agent earns a commission of about 5% to 6% of a home’s sale price, typically split between the seller’s and buyer’s agents. That means on a $400,000 home sale, around $24,000 could go toward agent fees alone. Alternatives like the 1 commission real estate agent are designed to dramatically reduce those out-of-pocket costs while still delivering professional support, marketing, and negotiation services. Naturally, this raises questions about the quality, reliability, and value of lower-commissioned agents. Let’s unpack how it all works, the pros and cons, and how you can decide if it fits your selling or buying strategy.
What Is a 1 Commission Real Estate Agent?
A 1 commission real estate agent is exactly what it sounds like: a licensed real estate professional who agrees to list and sell a home for a 1% commission of the final sale price. Compared to the traditional 5%–6% model, homeowners can potentially save thousands of dollars using this route. The agent still provides essential services like pricing guidance, MLS listing placement, showings, and contract negotiation—but at a slimmer cost. This structure is especially attractive in today’s competitive housing market, where every dollar saved matters.
What sets these agents apart isn’t just the commission rate—it’s the efficiency of how they manage listings. Thanks to technology and streamlined processes, many 1 commission models cut unnecessary overhead. They may operate with smaller teams but use digital marketing and automation tools to achieve the same reach as traditional brokerages. As a result, they can pass those cost savings on to their clients without sacrificing service quality. For example, listing a $600,000 home could mean a $6,000 agent fee instead of $18,000 under a traditional model.
It’s worth noting that the 1% fee typically applies to the listing side only. Sellers may still need to offer a buyer’s agent commission separately, often in the range of 2%–3%. However, even with that added cost, the total commission payout is usually lower overall. Some sellers choose to negotiate this or find buyers directly to avoid it entirely. Knowing your market, timing, and buyer habits can significantly influence how cost-effective the model becomes.
For buyers, the benefits stem from representation flexibility. Some 1 commission real estate agents focus entirely on helping buyers locate and negotiate homes, often offering cash-back incentives or rebates from the commission they earn from sellers. This approach can easily put money back in the hands of the buyer at closing, which is a huge win, especially for first-time home purchasers or those stretching their budgets.
How Home Sellers Benefit from a 1% Commission Model
Home sellers often prioritize two factors: maximizing their sale price and minimizing transaction costs. The 1 commission real estate agent model makes that second goal far more achievable. For example, on a high-value property, even a 1% difference in commission can mean tens of thousands in savings. These funds can be reallocated toward moving expenses, home improvements, or even serve as a down payment on the seller’s next home.
Moreover, many homeowners hesitate to list their properties out of concern for massive closing costs. Knowing that they can save considerably on commissions may encourage more sellers to enter the market. Increased inventory benefits not just individual sellers, but also buyers, as it can smooth out supply-and-demand imbalances and reduce upward pressure on home prices.
This model is especially appealing to experienced sellers—those who have some familiarity with the sales process and feel confident working with a streamlined agent. But it can also benefit those new to home sales. Agents offering 1% commissions typically still provide essential services, including home staging advice, photography, and pricing analytics. Combined with platforms that offer comparative market evaluations and modern listing tools, like those provided by the National Association of Realtors, sellers have access to high-quality support at a reduced cost.
Nonetheless, it’s important to vet these agents carefully. Some may limit services or support beyond the basics. Be sure to ask what’s included in their commission structure—open houses, photography, and paperwork preparation, for example. Price transparency is key to knowing what you’re getting into and avoiding hidden fees or cut corners.
The Buyer’s Perspective: Support and Savings
For buyers, the 1 commission real estate agent route doesn’t always work in exactly the same way as it does for sellers—but it can still present excellent opportunities. Many agents working under this model offer buyer rebates or closing credits to incentivize clients. A portion of the agent’s commission may be passed back to the buyer, potentially covering costs like appraisals or home inspections, or helping offset moving expenses.
In a world where affordability is a constant challenge, small savings go a long way. By receiving a rebate from their agent, buyers can improve their cash flow during a critical time. This often makes the choice especially smart for first-time buyers or those targeting regions where inventory is tight, and competition drives up prices quickly.
Alongside financial benefits, buyers still gain full access to property showings, contract advice, and negotiation support. These services ensure they’re not navigating complex mortgage terms or inspections alone. Moreover, with tools and learning resources available from platforms like the Consumer Financial Protection Bureau, buyers can become more informed before committing to an agent agreement.
It’s also important to note that buyer-agent rebates aren’t allowed in all states, so it’s vital to check with your state real estate commission. Transparency on this front remains critical during the agent interview process. Make sure you ask upfront what role your agent will play, how they intend to support your goals, and whether you’ll receive any financial incentives at closing.
Limitations and Considerations to Keep in Mind
As promising as the 1 commission real estate agent model is, it’s not without drawbacks. The most common concern is reduced service. To keep their margins sustainable, some agents limit the number of clients they take on—or conversely, try to overbook, leading to less individualized attention. This can affect everything from how fast your property is marketed to how available your agent is for showings or updates.
Additionally, sellers expecting luxury concierge service should verify whether those expectations match what’s included in the 1% fee. Photography, design consultations, and premium marketing may cost extra. Therefore, it’s crucial to compare offerings side-by-side and weigh the long-term benefits against the upfront price.
Another important consideration is the market context. In seller’s markets, homes may move quickly regardless of agent effort, which enhances the appeal of saving on commission. In slower markets, however, having a highly engaged full-service agent could mean the difference between weeks and months on the MLS. Qualified professionals from sources like IRS-recognized brokerages can still operate under a 1% commission model—but results can vary depending on local market dynamics.
Finally, make sure to independently research agent reviews, credentials, and recent sale outcomes. Ask about their listing-to-sale price ratio and how they’ve handled tough transactions. Even a low-commission model should come with personal accountability and professionalism built-in.
Is Beycome the Right Choice for Your Next Move?
For buyers and sellers looking to skip the padded fees and bloated processes of traditional real estate, Beycome offers a compelling solution that mirrors the advantages of a 1 commission real estate agent—only updated for the digital age. By helping clients buy or sell homes without sacrificing support or tools, Beycome delivers high-value transactions rooted in efficiency and transparency. Not only has Beycome helped customers close over 18,000 homes, but the platform has also saved users more than $213 million in commissions alone. That’s an average savings of $13,185 per home sale. A Beycome home sells every 30 minutes, proof that this approach isn’t just affordable—it’s effective.
If you’re getting ready to list your property, the Flat Fee MLS service provides maximum exposure without the markup. For those in the market to purchase, Beycome’s buyer home search tools offer streamlined browsing, powerful filters, and expert guidance—all personalized to your needs. And if you’re still deciding on price, the CMA property value calculator can help you land on a data-informed list price that attracts buyers quickly. Choosing Beycome means taking control of your real estate journey without compromising on service, trust, or results.