1. What is 1% Sales Commission?

A 1% sales commission is a fee paid to real estate agents or brokers that equals 1% of the final sale price of a property. This is a lower-than-average commission rate in many markets.

2. How Commission is Calculated

The commission is calculated using this simple formula:

Where:

• Sale Price — The final selling price of the property
• 0.01 — The 1% commission rate (1/100)

3. Importance of Commission Calculation

Details: Understanding commission costs is essential for both sellers (to know their net proceeds) and agents (to estimate their earnings). A 1% commission can significantly reduce selling costs compared to traditional rates.

4. Using the Calculator

Tips: Enter the property's sale price in dollars (without commas). The calculator will instantly show the 1% commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Is 1% commission common in real estate?
A: While traditional rates are often 5-6%, 1% commission models are becoming more popular, especially with discount brokerages.

Q2: Who pays the commission in a sale?
A: Typically the seller pays the commission, which is then split between the buyer's and seller's agents.

Q3: Are there additional fees beyond commission?
A: Often yes - closing costs, administrative fees, and other charges may apply beyond the basic commission.

Q4: Can commission rates be negotiated?
A: Yes, commission rates are always negotiable between the seller and their agent/brokerage.

Q5: How does this compare to flat-fee services?
A: 1% commission may be better for high-priced homes, while flat fees might be better for lower-priced properties.