The 1% Commission Model Explained: How It Works & Why It Saves You Thousands
When we tell clients they can sell their home for 1% commission (plus a flat fee), the reaction is almost always the same: “Okay, but what’s the catch?”
It is a fair question. For decades, the real estate industry has conditioned sellers to believe that paying 5% of their home’s value is the only way to get “Full Service.”
At Team Nori Realty, operating under the One Percent Realty banner, we are here to disrupt that mindset. We don’t cut corners; we cut the bloat. Here is the honest, transparent breakdown of how our model works and why it is the smartest financial decision you can make when selling.
Table of Contents
The Traditional Model vs. The 1% Model
Let’s use a standard $800,000 home in Simcoe County or Muskoka as our example.
1. The Traditional Way (5%)
Listing Fee: 2.5% goes to your agent.
Buyer Agent Fee: 2.5% goes to the buyer’s agent.
Total Cost: $40,000 + HST ($45,200).
Result: You lose a significant portion of your equity.
2. The Team Nori Way (1% + $950)
Total Fee: For homes over $900,000, we charge 1% + $950. For homes under $900,000, we charge a flat fee of **$9,950**.
The Split: This fee covers both our listing services AND the payment to the buyer’s agent.
Total Cost (Approx): ~$9,950 to ~$13,000 (depending on sale price).
YOUR SAVINGS: $25,000+ in your pocket.
Myth-Busting: "Do I Get Less Service?"
This is the biggest misconception. People assume a lower fee means no marketing, no photos, and no support. That is false.
Here is what is included in our Full-Service Package:
Full MLS® Exposure: Your home is listed on the local board (TRREB, Lakelands) and syndicated to Realtor.ca, just like any other listing.
Professional Media: We use high-definition HDR photography, drone footage (for acreages/waterfront), and virtual tours.
Staging Support: Access to our In-House Staging Inventory to make your home shine.
Negotiation: Sue Nori brings decades of project management and negotiation experience to the table. We handle the offers, the paperwork, and the closing.
How Can We Afford to Do This?
Traditional brokerages have high overheads—expensive franchise fees, massive marble-floored offices, and large cuts taken from their agents.
We Lean Out: We operate efficiently. We use technology to streamline paperwork.
Volume: Because our offer is so attractive, we sell more homes. We would rather sell 20 homes at a fair price than 5 homes at an inflated price.
The "Co-Op" Fee: Will Agents Show My Home?
You might worry that other agents won’t show your home if the commission is lower.
The Reality: We structure our fees to ensure the Buyer’s Agent is compensated.
The Option: If you are selling a luxury property and want to offer a higher incentive to buyer agents, you have the flexibility to increase the “co-op fee” while still saving massive amounts on the listing side. We customize the strategy to your specific market conditions.
The Bottom Line
Technology has made selling homes more efficient. It does not cost 5x more to sell a $1,000,000 home than a $200,000 home. Why should you pay 5x the fee?
Keep your equity. Use it for your retirement, your kids’ education, or your next down payment.
Curious about your specific numbers? Contact Team Nori Realty for a free “Net Sheet” calculation. We’ll show you exactly what you’ll walk away with.
Frequently Asked Questions About the 1% Model
Is One Percent Realty a "For Sale By Owner" (FSBO) service?
No. We are a fully licensed real estate brokerage. We are members of the Canadian Real Estate Association (CREA) and local real estate boards. We represent you fully, just like any other traditional brokerage.
What happens if the buyer doesn't have an agent?
If we find the buyer ourselves (meaning there is no other agent involved), you save even more! We don’t “double-end” the deal to double our fee; we facilitate the transaction smoothly for both parties.
Are there any hidden fees?
None. Our fee structure is simple: $9,950 for homes under $900k, and 1% + $950 for homes over $900k. Standard HST applies. That’s it.