In this guide, we’ll navigate the landscape of 1% commission rates and help you decide if it\u2019s right for you. We\u2019ll also look at ways you can walk away from your home sale with the most proceeds.<\/p>\n
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How does a 1% real estate commission work?<\/h2>\n
Low-commission agents, or 1% commission fee companies, are increasingly catching the attention of home sellers. These agents or brokerages offer to list and sell your home for a significantly reduced commission rate of just 1%. At first glance, this rate appears to be a substantial discount from the standard 3% to 6% commission normally subtracted from the sales proceeds. A 1% real estate commission for your listing agent is a huge discount, given the new commission structure<\/a> that decouples the commission of the listing agent and the buyer\u2019s agent.<\/p>\n However, it’s important to note that while you are only technically on the hook for the listing agent commission under the revised commission rules, there is the risk of your home sitting on the market without the additional push of offering the buyer’s agent commission.<\/p>\n Many buyers in the current market still choose to pay for the buyer\u2019s agent commission, and if that is the case for you, the 1% reduced rate offered by the listing agent affects just that \u2014 the listing agent’s typical 3% commission. In the end, it works out to be a roughly 2% discount because it only applies to half of the transaction.<\/p>\nYou may pay more than 1% commission<\/h3>\n