In the world of residential real estate, commissions play a major role in how much profit a homeowner keeps after a successful sale. Traditionally, realtors charge around 5–6% of the sale price, split between the buyer’s and seller’s agents. For a $400,000 home, that means potentially paying up to $24,000 in commission fees alone. But with more cost-savvy homeowners entering the market and technology streamlining transactions, the rise of the 1 commission realtor signals a fundamental shift in how real estate deals are getting done—and how much people are keeping in their pockets at the end.
This model challenges conventional norms by significantly reducing the commission rate to just 1% on the listing side. While the idea might seem too good to be true, it’s gaining traction across the country, particularly with sellers looking to maximize earnings and buyers seeking more flexible transaction terms. Whether you’re curious about how these agents operate, wondering if the savings come with trade-offs, or evaluating if this route aligns with your goals, understanding the 1 commission approach is essential in today’s evolving housing market.
What Is a 1 Commission Realtor and How Do They Work?
A 1 commission realtor, as the term suggests, is a licensed real estate professional who agrees to list and sell your property for a 1% commission fee rather than the industry-standard 2.5–3%. This discount model is designed to make home selling more accessible and profitable for sellers without skimping on the expertise needed to navigate legal documents, negotiations, and marketing.
In practice, the 1% typically applies only to the listing agent’s commission. Sellers may still end up paying 2.5% to the buyer’s agent unless the buyer comes unrepresented. Even then, many sellers are saving thousands of dollars while still benefiting from professional-level service. Perhaps most appealing is that this model often includes services like MLS listings, professional photography, pricing strategy advisement, and negotiation support.
That said, it’s crucial to recognize that not all 1 commission realtors offer the same scope of work. Some may operate in high-volume structures, leveraging technology and streamlined workflows to handle multiple listings efficiently. Others might reduce the time they spend per transaction, which raises questions about the level of personalized attention each client receives. Understanding how these professionals maintain service quality on a leaner commission is key.
The viability of this model is also supported by growing transparency and accessibility in real estate data. Today’s sellers are more informed and empowered, and government resources like HUD.gov continue to offer guidance about selling practices and consumer rights in real estate transactions.
Top Advantages of Working with a 1 Commission Realtor
The most obvious advantage of a 1 commission realtor is the potential to dramatically cut costs. By trimming the seller’s side commission by 1.5–2%, many homeowners save thousands at closing, which they can reallocate to moving expenses, upgrades in a new home, or paying down mortgages. This margin matters especially in competitive or high-cost housing markets.
Beyond cost-saving, this model encourages efficiency. Realtors working at this commission level often adopt robust digital platforms, which streamline property marketing, appointment scheduling, and document management. These tech-forward solutions ensure properties are marketed across key channels quickly and professionally, often matching—and sometimes exceeding—the reach of higher-cost agents.
Another persuasive benefit is speed. Agents operating under lower commission models tend to focus on quicker turnovers to boost their total earnings. That sense of urgency—combined with market-tested selling strategies—can work in the seller’s favor. When homes are priced and staged appropriately, they often move quickly in today’s data-driven real estate environment.
From a buyer’s perspective, some 1 commission realtors offer dual agency or buyer credit options, which can give house hunters a small rebate or closing cost credit. These agents are also incentivized to close deals efficiently, a dynamic that becomes especially helpful in competitive bidding scenarios.
Trade-Offs and Risks to Consider
However, the 1 commission approach comes with trade-offs, and prospective sellers should be aware of potential limitations. In some cases, listing agents may handle a larger volume of transactions to offset the lower fee, possibly affecting their availability and communication frequency. If personal, custom service is a priority, this could be a sticking point.
Marketing budgets might also be slimmer. While many low-commission agents provide MLS access and basic marketing, they may not offer in-depth staging consultations, premium photography, or high-volume advertising. If your home needs that extra appeal boost to stand out, you may have to handle it yourself or pay separately for enhancements.
In addition, some brokerages using the 1% model are selective about the types of properties they accept. Homes that are hard to price, atypical in layout, or located in rural areas may not fit within their standard service model. Being aware of any property-type restrictions early in the process prevents last-minute surprises.
Therefore, it’s wise to review every potential listing agreement thoroughly. A resource like ConsumerFinance.gov offers clear explanations of real estate contracts, agent obligations, and transaction fees that help clarify your legal standing as a seller or buyer.
Making the Financial Case: Is 1% Really Worth It?
On average, a 1 commission realtor could help you save between $7,000 and $15,000 depending on your home’s value and whether you’re covering the buyer’s agent fee. When calculating potential savings, it’s essential to avoid only focusing on percentages—look at real-dollar differences. In many deals, that discount can make a meaningful impact on financial flexibility.
However, cost savings must be reviewed alongside value delivered. If working with a lower-rate agent causes delays in sale, price drops, or lost deals, the upfront savings could dissolve. Strong reviews, local market expertise, and clear communication are more critical than just the sticker price. Always evaluate agents side-by-side, taking their complete service menu and recent sales into account.
Tax implications also deserve attention. Unless you qualify for exemptions on capital gains, your sale profit is potentially taxable. The savings from a 1% commission could alter your net proceeds and tax position. To navigate profit, capital gains eligibility, and deductions from home improvements, visit IRS.gov for official guidance.
Finally, when comparing agents, ensure all hidden fees are disclosed. Some low-commission brokerages may charge admin, transaction, or document processing fees separately. An honest breakdown of expected expenses helps you compare overall value more accurately.
Why More Sellers Are Turning to Beycome
As the demand grows for more affordable, transparent property sales, Beycome stands out by giving homeowners access to powerful tools and flat-fee service models that rival—or replace—the traditional 1 commission realtor. With over 18,000 homes closed and $213+ million saved in agent commissions, Beycome offers a smarter path to selling your home with more money staying in your pocket.
Sellers using Beycome enjoy transparent pricing, access to the MLS, and experienced support from start to finish. Better yet, a home on Beycome sells every 30 minutes on average, translating into real-time success backed by thousands of rave reviews. Whether opting for a DIY approach or adding concierge support, users customize their experience while preserving autonomy and savings.
If you’re wondering how your property would perform on the open market, our free CMA property value calculator helps you get a data-driven estimate. For those ready to list with zero pressure, the Flat Fee MLS package delivers maximum exposure with no inflated price tag. Want to keep control from beginning to end? Explore our powerful resources for for-sale-by-owner sellers who still want expert-level tools and support. With Beycome, it’s not about cutting corners—it’s about cutting unnecessary costs.
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