What is a 1% listing agent?

A 1% listing agent charges 1% of the sale price as their commission for listing and selling your property, compared to the traditional 2%–2.5% listing commission. You still typically offer a commission to the buyer agent (2%–2.5%), so your total commission is approximately 3%–3.5% instead of the traditional 4.5%–5%. On a $700,000 home, a 1% listing commission saves you roughly $7,000–$10,500 compared to a 2%–2.5% listing commission. Some 1% agents offer full service; others provide a reduced service package.

What services do 1% agents provide?

It varies widely. Some 1% agents provide full service — professional photography, staging advice, MLS listing, open houses, offer negotiation, and closing management — just at a lower commission. Others offer a reduced package that may exclude professional photography, staging, open houses, or hands-on offer negotiation. Before signing, ask for a detailed list of what is included. The key question is whether the lower commission means less attention to your listing or simply a more efficient business model.

Will buyer agents avoid my 1% listing?

The 1% commission refers to the listing side. As long as you offer a standard buyer agent commission (2%–2.5%), buyer agents have no reason to avoid your listing — their side of the deal is the same. If you reduce the buyer agent commission too (e.g., offering 1% to the buyer agent as well), some agents may direct their clients away from your property. The key is to offer competitive buyer-side compensation regardless of what you pay on the listing side.

Are discount brokerages trustworthy?

Many discount brokerages are licensed, experienced, and reputable. The discount model works because they operate with lower overhead, handle higher volumes, or use technology to reduce costs per transaction. However, like any service, quality varies. Check their reviews, ask about their transaction volume, request a detailed service list, and interview them the same way you would a full-service agent. A bad full-service agent is worse than a good discount agent.

Is a 1% agent right for my property?

It depends on your market, property type, and comfort level. A 1% agent may work well if you are in a hot seller market where homes sell quickly with minimal marketing, your property is straightforward (standard residential, desirable area), or you are comfortable handling some aspects of the sale yourself. For complex properties (luxury, unique, rural, difficult-to-sell), a full-service agent with deep market knowledge and superior marketing may generate offers that more than offset the higher commission.

1% Listing Agents in Canada: Discount vs Full-Service Commission Comparison (2026)

The traditional 5% total commission (2.5% listing side + 2.5% buyer side) is no longer the only option. Here is how 1% and discount listing agents compare to full-service agents — and when each makes sense.

Discount listing agents charge lower commissions than traditional realtors. For the full purchase sequence, see our home buying process guide.

Commission models in Canada

Model	Listing Commission	Buyer Agent Commission	Total on $700,000 Home
Traditional full-service	2.5% ($17,500)	2.5% ($17,500)	$35,000 + HST
1% listing agent	1.0% ($7,000)	2.5% ($17,500)	$24,500 + HST
1.5% listing agent	1.5% ($10,500)	2.5% ($17,500)	$28,000 + HST
Flat-fee listing	$3,000–$5,000 (flat)	2.5% ($17,500)	~$21,000 + HST
Flat-fee MLS (mere posting)	$500–$2,000 (flat)	2.5% ($17,500)	~$19,000 + HST

Savings at different price points

Home Price	Full-Service (2.5%)	1% Agent	Savings
$400,000	$10,000	$4,000	$6,000
$600,000	$15,000	$6,000	$9,000
$800,000	$20,000	$8,000	$12,000
$1,000,000	$25,000	$10,000	$15,000
$1,500,000	$37,500	$15,000	$22,500
$2,000,000	$50,000	$20,000	$30,000

Full-service vs discount: what you get

Service	Full-Service (2%–2.5%)	1% Agent	Flat-Fee MLS
MLS listing	✅	✅	✅
Professional photography	✅	Sometimes	❌ (you provide)
Virtual tour / video	✅	Rarely	❌
Staging consultation	✅	Sometimes	❌
Home staging	Sometimes (agent-funded)	Rarely	❌
Open houses	✅	Sometimes	❌
Targeted marketing (social media, print)	✅	Limited	❌
Comparable market analysis	✅	✅	Limited
Pricing strategy	✅	✅	❌
Offer presentation & negotiation	✅	✅ (may be less hands-on)	❌ (you handle)
Showing management	✅	Varies — may use showing service	❌ (you handle)
Closing coordination	✅	✅	Limited
Personalized attention	High (fewer clients)	Lower (higher volume)	None

When a 1% agent works well

Scenario	Why 1% May Be Sufficient
Hot seller’s market	Homes sell quickly with minimal marketing — less work for the agent
Desirable neighbourhood	Buyer demand is high regardless of marketing effort
Standard property	3-bedroom detached, nothing unusual — straightforward sale
You’re comfortable with less hand-holding	You can handle some tasks yourself
Higher-priced property	The absolute dollar savings are significant ($15K+ on a $1M+ home)
You’ve sold homes before	You understand the process and what to expect

When full-service is worth the premium

Scenario	Why Pay More
Slow market / buyer’s market	Your property needs maximum marketing effort to attract buyers
Unique or difficult property	Rural, luxury, unusual layout, heritage — requires specialized marketing
Complex sale	Tenanted, estate, divorce, multiple offers — experienced negotiation matters
First-time seller	You need guidance through pricing, staging, offers, and closing
The property needs positioning	Strategic pricing, staging, and timing can add more value than the commission difference
Competitive neighbourhood	Multiple listings in your area — differentiation and marketing effort matter

How 1% agents make money

Business Model	How It Works
Volume	Handle 50–100+ transactions per year vs 10–20 for a typical agent
Technology	Automated marketing, virtual showings, digital offer management
Team model	Lead agent + showing assistants + transaction coordinators
Lower overhead	Smaller or virtual offices, less marketing spend per listing
Buyer-side revenue	Many 1% listing agents also work with buyers at full commission
Upsell services	Offer premium packages (photography, staging, open houses) for additional fees

Questions to ask a 1% agent before signing

What is your track record? — How many homes did you sell last year? In this neighbourhood?
What services are included at 1%? — Get a detailed written list
Who handles showings? — Is it you personally or an assistant?
What marketing do you provide? — Photos, video, social media, print?
How do you handle multiple offers? — Walk through the process
What is your average sold-to-list price ratio? — Are your listings selling at or above asking?
How many active listings do you have right now? — Too many = less attention per client
Are there additional fees for premium services? — Photography, staging, open houses
Can I see recent client reviews? — Check Google, Zillow, realtor.ca reviews
What buyer agent commission do you recommend? — Ensure it is competitive (2%–2.5%)

Major discount and 1% brokerages in Canada

Brokerage	Model	Typical Commission	Notes
Justo	Discount	1%–1.5% listing	Technology-driven, GTA focus
Unreserved (formerly Purple Bricks)	Flat fee	Flat fee + buyer agent commission	Virtual agent model
Properly	Discount + cashback	Varies	Buy and sell with cashback
Redfin Canada	Discount	1%–1.5% listing	US-based discount model, limited Canadian markets
FairSquare	Discount	1.5% listing	Full-service at reduced commission
Local 1% agents	Individual discount agents	1%–1.5%	Available in most cities — search locally

The negotiation approach

You do not have to use a discount brokerage — you can negotiate with a traditional full-service agent:

Negotiation Strategy	Likelihood of Success
Ask for a lower listing commission (e.g., 2% instead of 2.5%)	Moderate — many agents will negotiate on higher-priced homes
Volume discount (selling and buying with the same agent)	High — agents often reduce commission for dual transactions
Offer a bonus for fast sale or above-asking price	Some agents will accept lower base commission with performance incentives
Agree to a longer listing term in exchange for lower commission	Moderate — more time = more certainty for the agent
Higher-priced properties ($1M+)	High — agents are more willing to negotiate on larger transactions

Key takeaways

The 1% listing commission refers to the listing side only — always offer competitive buyer-agent compensation (2%–2.5%)
Savings range from $6,000 to $30,000+ depending on home price
Quality varies across all commission levels — interview agents regardless of their fee structure
Hot markets and standard properties are ideal for discount models
Complex, difficult, or luxury properties may benefit from full-service agent expertise
You can negotiate commission with any agent — it is not a fixed rate