1% Commission Real Estate Agent: How It Works in 2026

A 1% commission real estate agent charges 1% of your home’s sale price for the listing side of the transaction. That’s substantially less than the 2.5%–3% listing-side rate often used as a comparison with traditional full-service brokerages.

On a $500,000 home, a 1% listing fee is $5,000. If you compare that with a 2.88% listing-side commission, the difference is $9,400.

But there’s an important detail: 1% usually refers only to the listing side. It does not automatically mean your total cost to sell the home will be 1%.

Buyer-agent compensation is negotiated separately. A seller may choose to offer compensation to a buyer’s agent, but it is not automatically required. Since the 2024 changes associated with the National Association of Realtors settlement, offers of buyer-agent compensation cannot be displayed on MLSs covered by the settlement practice changes. The amount, if any, is negotiated separately.

In 2026, Clever’s latest agent survey put the average total real estate commission at 5.70%, with 2.88% on the listing side and 2.82% on the buyer side. These are survey averages, not mandatory rates, and actual commissions vary by market and transaction.

That distinction is what makes a 1% listing agent attractive: you can potentially reduce the listing-side cost while still receiving full-service representation.

What Is a 1% Commission Real Estate Agent?

A 1% commission real estate agent is a licensed agent and brokerage that charges approximately 1% of the home’s final sale price for listing services.

Depending on the company, that may include:

• Pricing and comparative market analysis
• MLS listing
• Professional photography
• Online marketing
• Showing coordination
• Offer review
• Negotiation
• Transaction management
• Closing coordination

The exact package varies, so never assume that every company advertising “1%” provides identical service.

For example, 1 Percent Lists says it offers full-service representation for a 1% seller commission, while Houwzer advertises a 1% listing fee with professional photography, MLS listing, negotiation support, and transaction assistance.

How Does a 1% Real Estate Commission Work?

The basic calculation is simple:

Listing Commission = Home Sale Price × 1%

For example:

$500,000 × 0.01 = $5,000

If your listing agreement specifies a 1% commission, the listing-side fee would therefore be $5,000 on a $500,000 sale.

The more important question is what happens on the buyer’s side.

A seller can separately negotiate whether to offer compensation toward the buyer agent’s fee. That amount is not included in the 1% listing commission unless the brokerage specifically says otherwise.

This means a seller could have:

• 1% listing-side commission
• A separately negotiated buyer-agent compensation amount
• Other transaction costs, such as title, escrow, transfer taxes, concessions, and repairs

The 1% figure should therefore be treated as the listing fee, not automatically the total cost of selling.

How Much Can a 1% Commission Real Estate Agent Save?

The easiest way to estimate savings is to compare the 1% listing fee with another listing-side percentage.

Using 2.88% as a 2026 survey-based listing-side comparison, the potential difference looks like this:

Home Sale Price	2.88% Listing Fee	1% Listing Fee	Potential Listing-Side Savings
$300,000	$8,640	$3,000	$5,640
$500,000	$14,400	$5,000	$9,400
$750,000	$21,600	$7,500	$14,100
$1,000,000	$28,800	$10,000	$18,800

These calculations compare listing fees only.

They do not include buyer-agent compensation and other seller closing costs.

Calculate Your Commission Savings

You can also use a sales commission calculator to understand the basic percentage math before comparing real estate fees.

Sales commission calculator

For sellers, the same percentage principle applies:

Commission = Sale Price × Commission Rate

The difference between two rates can then be calculated to estimate potential savings.

1% Real Estate Commission Example

Suppose you sell your home for $600,000.

At 1%:

$600,000 × 0.01 = $6,000

At 2.88%:

$600,000 × 0.0288 = $17,280

Potential listing-side difference:

$17,280 − $6,000 = $11,280

So, based purely on the listing fee, choosing a 1% agent could leave approximately $11,280 more before considering any other transaction costs.

Low Commission Real Estate Companies Compared

Several companies currently advertise low listing commissions, but their business models and terms differ.

Company	Advertised Listing Model	What to Know
1 Percent Lists	1% seller commission	Full-service model with locations across the U.S.
Houwzer	1% listing fee	Full-service model with salaried agents in its service markets
SimpleShowing	1% listing commission	Technology-focused brokerage with local agents
Redfin	2%–3% listing range; 1% for eligible buy-and-sell customers	Current terms depend on services, market, minimums, and eligibility

1 Percent Lists states that its seller fee is 1% for full-service representation and that sellers may separately choose whether to offer buyer-agent compensation.

Houwzer currently advertises a 1% listing fee with full-service support, including a salaried agent, professional photography, MLS listing, negotiation support, and a transaction team.

SimpleShowing advertises a 1% listing commission and notes that buyer-agent compensation is separate.

Redfin requires special attention because its current pricing is not accurately described by simply calling it a 1.5% brokerage. Redfin currently says listing fees range from 2%–3%, depending on services, while eligible customers can receive a 1% listing fee when they sell and also buy with Redfin within the specified 365-day period. Minimums and additional terms apply.

Always confirm the current fee and terms for your specific market before signing a listing agreement.

What Is Included in a 1% Listing Fee?

The answer depends entirely on the brokerage.

A strong 1% listing package may include:

MLS Listing

Your property should be entered into the appropriate local MLS and distributed through the brokerage’s normal listing channels.

Professional Photography

Quality photography can have a major impact on how a property performs online. Ask whether photography is included and charged separately.

Pricing Strategy

A good low-commission agent should still provide a market analysis and explain how they arrived at the recommended listing price.

Marketing

Ask exactly where your home will be marketed. This could include the MLS, brokerage website, real estate portals, social media, email marketing, open houses, and other channels.

Negotiation

Low commission should not automatically mean low negotiation support. Ask who handles offers, counteroffers, inspection issues, and other negotiations.

Transaction Management

After accepting an offer, someone should coordinate deadlines, documents, inspections, appraisal, title, and closing.

The key is to compare services, not just percentages.

What Is the Catch With a 1% Listing Fee?

There isn’t necessarily a catch, but there can be conditions.

Minimum Commission

A company may advertise 1% but impose a minimum dollar fee.

For example, if the minimum is $5,000:

• $250,000 × 1% = $2,500
• Actual minimum = $5,000
• Effective rate = 2%

That’s why sellers should always ask:

“Is there a minimum commission?”

Buyer-Agent Compensation Is Separate

A 1% listing fee doesn’t automatically eliminate buyer-agent compensation.

If you decide to offer buyer-agent compensation, that cost needs to be included in your total selling-cost calculation.

Service Differences

Some low-cost brokerages use teams, technology, and centralized support to reduce overhead. Others may provide a more traditional one-agent relationship.

Ask who will actually be responsible for your transaction.

Additional Services

Staging, enhanced photography, drone photography, repairs, advertising upgrades, transaction fees, and other services may cost extra depending on the brokerage.

Get all fees in writing before signing.

How to Vet a 1% Commission Real Estate Agent

Before choosing a low commission realtor, ask these questions:

1. Is the commission exactly 1%?
2. Is there a minimum commission?
3. Are there additional transaction and administrative fees?
4. Who will personally manage my listing?
5. Is professional photography included?
6. Is the MLS listing included?
7. How will my home be marketed?
8. Who negotiates offers and inspection issues?
9. What happens if the listing expires?
10. What buyer-agent compensation options can I offer?
11. Can I review the complete listing agreement before signing?
12. How many similar homes has the agent recently sold?

Don’t choose an agent solely because the percentage is lower.

The goal is to find the lowest fee that still gives you the level of service your property requires.

1% Commission vs. Traditional Listing Agent

The biggest difference is usually the fee structure.

A traditional listing agent may charge a higher percentage, while a 1% brokerage uses a lower listing-side rate.

But a higher commission doesn’t automatically guarantee a better result, and a lower commission doesn’t automatically mean worse service.

Consider these factors:

Factor	1% Agent	Traditional Agent
Listing fee	Often around 1%	Often higher
MLS listing	Usually included	Usually included
Photography	Depends on company	Often included
Pricing advice	Usually included	Usually included
Negotiation	Depends on package	Usually included
Buyer-agent compensation	Separate/negotiated	Separate/negotiated
Minimum fees	Possible	Possible
Service model	Varies	Varies

The right choice depends on the actual listing agreement, not the headline percentage.

Is a 1% Commission Real Estate Agent Right for You?

A 1% listing agent can make sense if:

• Your home is easy to market.
• You are comfortable communicating digitally.
• You want to reduce selling costs.
• You understand the transaction process.
• The brokerage provides strong local expertise.
• The property doesn’t require unusually intensive marketing.

A traditional agent may be worth considering if:

• Your property is difficult to price.
• The home needs extensive marketing.
• You expect complicated negotiations.
• You want highly hands-on service.
• You prefer frequent face-to-face guidance.

The important question isn’t simply Who charges the least?

It’s:

“Who can provide the service I need at the lowest reasonable total cost?”

Understanding Buyer-Agent Compensation in 2026

The real estate commission structure changed significantly after the 2024 NAR settlement-related practice changes.

One important change is that offers of compensation to buyer agents cannot be displayed on MLSs subject to the settlement rules.

That does not mean buyer agents work for free.

Buyer-agent compensation can still be negotiated between the relevant parties, and a seller may choose to offer compensation as part of the transaction.

For sellers considering a 1% listing agent, this distinction is essential.

Your total selling cost could look something like:

1% listing commission + negotiated buyer-agent compensation + other selling costs

Therefore, don’t compare a 1% listing fee directly with an advertised total commission without checking what each figure includes.

How to Compare 1% Real Estate Agents

When comparing two low commission realtors, create a simple side-by-side calculation.

For each brokerage, record:

• Listing percentage
• Minimum commission
• Buyer-agent compensation
• Transaction fees
• Photography
• Marketing
• Staging
• Open houses
• Negotiation support
• Contract and transaction management

You can also review our sales commission structure template to understand how percentage-based commission structures are documented and calculated.

The same basic math applies to real estate:

Sale Price × Commission Rate = Commission

But the final decision should account for every fee and service included in the agreement.

FAQ

Are 1% commission real estate agents legit?

Yes. Several established brokerages advertise 1% listing models. For example, 1 Percent Lists and Houwzer currently advertise 1% listing fees, while SimpleShowing also advertises a 1% listing commission.

The important issue is not whether the model is legitimate. It’s whether the specific brokerage provides the service you need and clearly discloses minimums and additional fees.

Do I have to pay a buyer’s agent commission with a 1% listing agent?

Not automatically. Buyer-agent compensation is separately negotiated, and a seller can decide whether and how much compensation to offer.

If you offer compensation, that amount should be included when calculating your total cost to sell.

What’s the catch with a 1% real estate commission?

The biggest things to check are minimum commissions, additional fees, service limitations, and whether buyer-agent compensation is separate.

A 1% advertised fee can also have a higher effective percentage on lower-priced homes if a minimum commission applies.

Is Redfin a 1% commission real estate agent?

Redfin can offer a 1% listing fee to eligible customers who sell and also buy with Redfin within the applicable 365-day period. However, Redfin’s current standard listing fees range from 2%–3%, depending on services, and minimums and other terms apply.

So it is not accurate to describe Redfin universally as a 1% listing brokerage.

How much does the average real estate agent charge?

There is no single mandatory national commission rate.

A 2026 Clever survey estimates average total real estate commission at 5.70%, including 2.88% on the listing side and 2.82% on the buyer side. Actual rates vary by location, property, brokerage, and negotiation.

Can I negotiate a real estate commission?

In general, commission arrangements are negotiable, but the exact rules and disclosures can vary by state and transaction.

Ask the agent to explain the complete fee structure and review the written agreement before signing.

Final Takeaway

A 1% commission real estate agent can save a seller thousands of dollars on the listing side of a home sale.

On a $500,000 home, a 1% listing fee is only $5,000. Compared with a 2.88% listing-side rate, that represents a potential $9,400 difference before considering buyer-agent compensation and other selling costs.

But the percentage alone shouldn’t determine your decision.

Check the minimum commission, additional fees, marketing package, photography, negotiation support, transaction management, and buyer-agent compensation arrangements.

The best low commission realtor isn’t necessarily the one with the lowest advertised percentage. It’s the one that gives you the right combination of service, local expertise, transparency, and total cost.