Are 1% Realtors Good? What You Give Up and What You Don't
Are 1% Realtors Good? What You Give Up and What You Don't
If you are asking whether 1% realtors are good, the fee alone does not answer it. A low listing fee is a price. Whether it is a good deal depends on what you receive for it, what it costs you in other ways, and who does the work. This post gives a balanced answer, including when a 1% listing is not the right fit.
I am Zack DeCaro, a broker with Property Works New England in Rocky Hill, with 10+ years in real estate and 250+ homes sold. I charge 1% on the listing side plus a $400 transaction fee, so I have an interest here. I will point you elsewhere where that fits.
What a 1% listing fee is, and what it is not
A 1% listing fee is the fee you pay your own agent, the one who represents you as the seller. It is a percentage of the sale price. That is all it is.
It is not a total commission for the whole sale. Buyer-agent compensation is a separate decision that you and your agent discuss and put in writing. It is also not a promise about price, speed or service. Two agents can both charge 1% and deliver very different results, just as two agents charging a traditional fee can.
For the full list of what my 1% fee includes, see what a 1% listing fee covers. For Connecticut closing costs that apply no matter which agent you hire, see the cost to sell a house in Connecticut.
What you do not give up
When the agent does the same job, a lower fee does not mean a lesser sale. A seller working with a full-service 1% agent should still expect:
MLS exposure. The home goes into the MLS and flows to the major home search sites, the same way any agent's listing does.
Professional photography and a real marketing plan.
A pricing strategy built on recent closed sales. Not a number picked to win your signature.
Showing coordination and feedback, handled for you.
Negotiation. Offers, inspection requests and appraisal issues handled by a licensed agent on your behalf.
Management of the file through closing. Working with the closing attorney, the buyer's side and the lender.
What changes your outcome is pricing, presentation, exposure and negotiation skill, not the percentage.
What you may give up
Some tradeoffs are real, and a good agent should name them before you sign.
Less margin per listing. A lower fee only works when an agent handles volume. If the agent is stretched, you may get slower replies. Ask how many active listings the agent carries and who answers when the agent is unavailable.
Capped or tiered services. Some low-fee offers include only a basic package, with photos, staging advice, open houses or negotiation help available at an extra cost.
Minimum fees. A percentage can be paired with a minimum dollar fee that makes a lower-priced home cost far more than 1%. Ask for the dollar total at your expected price.
Buyer-agent compensation may still be a question. A low listing fee does not remove the buyer side. If you decide to offer a concession to buyers, that comes out of your proceeds. See who pays the buyer's agent in Connecticut.
When a 1% listing might not be the best fit
A 1% listing is a good fit for many ordinary home sales, but not all. Consider other options in these cases:
You only need the MLS and you know what you are doing. If you already have a buyer, or you are an experienced seller or investor who wants to handle showings and negotiation, a flat-fee MLS service may cost less. The tradeoff is that the work of pricing, photos, showings, offers and the transaction is yours. I compare the two in flat fee MLS vs. a 1% listing in Connecticut.
The property is unusual. A large estate, a unique custom home, land, or a property that needs a specialized buyer audience may call for paid advertising, video, print, or extra outreach. Ask whether that spending is covered or billed to you, and how much.
The agent caps the service. If a 1% agent will not do open houses or handle repair and appraisal negotiations and you want those, the savings may not be worth it.
How to tell a good 1% agent from a bad one
Ask the agent these questions, and ask them of every agent you interview, whatever the fee:
What exactly is included? Ask for the list in writing, and ask what is not included.
What will I pay in dollars at my expected price, including every fee?
Which homes have you sold in my town recently, and at what price relative to list?
Who answers my calls and handles showings and negotiations?
Does any marketing for a home like mine cost me extra?
Can I cancel the listing agreement, and under what terms?
When you compare written proposals, line them up side by side on these points:
Marketing included. Photography, MLS, online promotion, open houses, signage, any paid advertising.
Recent comparable sales in your town. The agent should show closed sales, not only active listings, and explain the adjustments.
Days on market. Ask for recent listings in your price range and how long they took to sell. One fast sale proves little, so look at the pattern.
List-to-sale ratio. The final sale price compared with the original list price. It hints at how accurately the agent prices. Ask how it is calculated.
Cancellation terms. How long is the agreement, and what notice or fee applies if you end it early?
A good agent welcomes these questions and shows real numbers from real sales. A bad one is vague about the work, pushes you to sign today, avoids showing local sales, or hides costs in the fine print. That applies at any fee. You can read what past clients said on our reviews page.
What changed in 2024 on buyer-agent compensation
Because the buyer side comes up in nearly every listing conversation, here is what changed. These points come from the sources linked at the end of this post.
Effective August 17, 2024, under the practice changes that followed the National Association of Realtors settlement, offers of compensation to buyer agents may no longer be displayed in NAR-affiliated MLS systems. Terms can still be negotiated outside the MLS. (NAR release dated August 16, 2024)
Buyers' agents must have a written agreement with the buyer before touring a home, and it must state the agent's compensation and say that fees and commissions are negotiable. These rules do not apply to the listing agent. (RealEstateNews, August 17, 2024)
Connecticut's Department of Consumer Protection has stated that every agent's commission is negotiable, in a consumer release dated May 6, 2015. (CT DCP release)
Treat buyer-side compensation as its own decision and look at net proceeds, not the commission alone.
A worked net-proceeds example
The numbers below are illustrative only. They are not a quote, a forecast or a guarantee, and your costs will differ. The example assumes a $450,000 sale in a town with a 0.25% municipal conveyance tax, a $200,000 mortgage payoff, a $1,500 attorney fee, and a $9,000 concession toward the buyer's agent, the same in both columns. The 2.5% traditional listing fee is an assumption for comparison, not a statistic. Prorated property taxes and repairs are left out.
Line item | 1% listing + $400 | 2.5% listing (assumed) |
|---|---|---|
Sale price | $450,000 | $450,000 |
Listing-side fee | $4,900 | $11,250 |
Buyer-agent concession (assumed) | $9,000 | $9,000 |
Conveyance tax (state 0.75% plus town 0.25%) | $4,500 | $4,500 |
Attorney (assumed) | $1,500 | $1,500 |
Mortgage payoff (assumed) | $200,000 | $200,000 |
Estimated net proceeds | $230,100 | $223,750 |
The difference is $6,350, which is the gap in the listing fee alone. If your property needed $2,000 of extra marketing paid by you, the gap would shrink to $4,350. A minimum fee would shrink it further. That is why you should ask for the dollar total, in writing, before you sign. For the state conveyance tax rates used here, see our cost to sell guide, and confirm your town's rate with your closing attorney.
To see what your own home might sell for, start with a free home value estimate.
Frequently asked questions
Are 1% realtors good?
They can be, but the percentage does not tell you. What matters is whether the agent does the full job on the listing side: pricing, photography, MLS exposure, showings, negotiation and managing the file to closing. Get the services in writing and compare proposals on what is included, local sales and cancellation terms.
Is a 1% commission worth it?
It is worth it when the services match what a higher-fee agent would provide, because the difference stays in your pocket. It is not worth it if capped services, minimums or extra charges erase the savings. Compare net proceeds, not the headline percentage.
Does a 1% listing fee include the buyer's agent?
No. A 1% listing fee covers the listing side only. Buyer-agent compensation is a separate, negotiable decision, and since August 2024 offers of compensation are no longer displayed in most MLS systems. Discuss any concession before you list.
Will a 1% listing agent market my home as well?
It should, if the listing agreement says so. The same MLS listing, photography and showing process can be used at any fee. Ask what marketing the agent pays for and what, if anything, you would pay for.
How do I find a 1% listing agent in Connecticut?
Ask two or three agents for written proposals, including one with a traditional fee, and compare them on the points in this post. Then talk with each agent directly.
Disclosures
The 1% fee is for listing-side representation only.
Commissions and fees are negotiable and are not set by law or by the MLS.
Buyer-agent compensation is separate from the listing fee and is also negotiable.
A $400 transaction fee applies.
Examples in this post are illustrations, not guarantees. This post is general information, not legal or tax advice.
If you would like to talk it through, call me at (860) 209-3000 or see our 1% listing program. Zack DeCaro, Broker, Property Works New England, 2264 Silas Deane Hwy, Rocky Hill, CT 06067. CT broker license REB.0795525.
