How Does Buyer Agent Commission Work With a 1% Listing in Louisiana?
You’ve watched your home’s value climb over the years. Whether you’re in a quiet Covington subdivision, a waterfront property in Mandeville, or a historic home in New Orleans, that equity represents years of hard work and smart investment. But as you consider selling, a daunting number looms: the traditional 5-6% real estate commission. On a $400,000 home, that’s up to $24,000 of your hard-earned equity handed over at the closing table.
Then you hear about a better way—a full-service, 1% listing fee. It sounds revolutionary. It sounds like the modern solution you’ve been waiting for. But it also raises an immediate, critical question, the number one question we hear from sellers across the Northshore:
“That sounds great, but if I only pay 1%, will any agent bring a buyer to my house? How does the buyer’s agent get paid?”
It’s a fair and intelligent question. You want to save money, but not at the cost of scaring away potential buyers. The good news is, you don’t have to. This post will demystify the commission structure of a 1% listing, show you exactly how the buyer’s agent is compensated, and explain how you can save thousands without sacrificing an ounce of service or exposure when selling your home in Covington, Mandeville, or the surrounding areas. This isn’t just a new business model; it’s a movement that started right here, designed to put more money back where it belongs—in your pocket.
Key Takeaways
- The 1% is the Listing Fee: The 1% you pay to 1 Percent List HUB is our fee for providing full-service representation on the seller’s side of the transaction.
- You Control the Buyer’s Agent Commission: As the seller, you still offer a competitive commission to the agent who brings the buyer. This amount, typically 2-3%, ensures your home is shown by all agents and receives maximum market exposure.
- Massive Savings, Full Service: The combination of a 1% listing fee and a competitive buyer’s agent commission results in thousands of dollars in savings for you, all while receiving a complete, full-service real estate experience.
- A Local Innovation: The 1 Percent Lists model isn’t a faceless national corporation; it’s a nationwide movement that was born right here on the Northshore, founded on the principle of fairness for Louisiana homeowners.
First, Let’s Break Down the “Traditional” 6% Commission
Before you can appreciate the innovation of the 1% listing model, it’s crucial to understand the old-fashioned way of doing things. The 6% commission figure has been the industry standard for so long that many homeowners accept it without question, not fully understanding where all that money goes.
The Two Halves of the Commission Pie
That 6% figure isn’t a single fee paid to your listing agent. It’s a total commission amount that is almost always split between two different real estate brokerages:
- The Listing Brokerage: This is the company that represents you, the seller. They market your property, manage showings, and negotiate on your behalf.
- The Buyer’s Brokerage: This is the company whose agent finds the buyer, shows them your home, writes the offer, and represents them through closing.
Typically, this 6% is split right down the middle, with 3% going to the listing side and 3% going to the buyer’s side.
Let’s look at a real-world example. Imagine you’re selling a beautiful home in Madisonville for $450,000.
- Total Traditional Commission (6%): $27,000
- Paid to Listing Brokerage (3%): $13,500
- Paid to Buyer’s Brokerage (3%): $13,500
That $13,500 is the incentive for every agent working with buyers in the New Orleans area MLS to show your home.
Who Pays for What? The Seller’s Role
Here is the most important part of the traditional model: the seller pays the entire commission from their proceeds at the closing. Even though half of that money goes to the brokerage representing the buyer, it is funded entirely out of your home’s equity. You are paying for your representation and the buyer’s representation. This is precisely the part of the transaction that our model modernizes to your benefit.
The 1 Percent Lists Model: How It Works for You
Now, let’s address the central question. How does our model work, and how does it ensure every buyer’s agent in the market is excited to show your home? It’s simple, transparent, and puts you in control.
The 1% is Your Listing Fee
This is the core concept that changes everything. The 1% you pay to 1 Percent List HUB is for the listing side only. This is our full-service fee to professionally market your home, provide expert guidance, negotiate aggressively on your behalf, and manage the entire transaction from listing to closing. We’ve simply made our side of the process dramatically more efficient, passing the savings directly to you.
You Still Offer a Competitive Commission to the Buyer’s Agent
This is the critical answer to the big question. To attract the maximum number of buyers, you—the seller—will still offer a competitive commission to the agent who brings the successful buyer. This is known as the Buyer Agent Commission, or BAC.
The key difference? You are in control.
With our guidance, you decide what commission to offer buyer’s agents. Typically, our sellers in the Mandeville housing market and beyond offer 2%, 2.5%, or 3%. This amount is advertised in the MLS, making it visible to every agent in the region.
When a buyer’s agent sees your home listed, they see a competitive commission offer, just like any other property. They are fully motivated to show and sell your home because they will be compensated fairly for their work. Your property gets the exact same exposure and agent attention as a home listed with a 6% commission structure. The only difference is the thousands of dollars you keep.
Let’s See the Savings: A Real Covington Example
The numbers speak for themselves. Let’s use a conservative home price of $400,000 for a home in a desirable area like the River Club in Covington.
| Commission Model | Listing Fee | Buyer Agent Fee | Total Commission | Your Savings |
|---|---|---|---|---|
| Traditional 6% Model | $12,000 (3%) | $12,000 (3%) | $24,000 | $0 |
| 1 Percent Lists Model | $4,000 (1%) | $10,000 (2.5%) | $14,000 | $10,000 |
By choosing to list for 1 percent commission, you put an extra $10,000 directly into your bank account. That’s a family vacation, a significant contribution to your next home’s down payment, or a boost to your investment portfolio—all without sacrificing a single thing in terms of service or market reach.
“Full Service” Isn’t a Buzzword—It’s Our Promise
A common misconception about any low-cost real estate broker is that “low commission” must mean “low service.” That couldn’t be further from the truth. We are a full-service brokerage, and our 1% listing fee covers everything you expect from a top-tier agent.
What You Get for Your 1% Listing Fee
When you list your home with us, you receive the complete, professional package:
- Professional Photography: Stunning photos that make your home shine online.
- Full MLS Listing: Your home is listed on the Gulf South Real Estate Information Network (GSREIN), the MLS for the entire New Orleans and Northshore area.
- Massive Online Syndication: Your listing is pushed to Zillow, Realtor.com, Trulia, and hundreds of other real estate websites.
- Professional Yard Sign & Lockbox: The essential tools for visibility and secure showing access.
- Expert Pricing Strategy: We leverage deep knowledge of the Northshore subdivisions and market trends to price your home for maximum return.
- Showing Coordination: We manage all showing requests to make the process seamless for you.
- Skilled Contract Negotiation: Our experienced agents fight to get you the best price and terms.
- Full Support from Contract to Closing: We are with you every step of the way, coordinating with inspectors, appraisers, and the title company until the sale is final.
How Can We Do It? A Smarter, More Efficient Model
We didn’t become a leading discount real estate broker by cutting corners. We did it by innovating. Our business model leverages cutting-edge technology and a streamlined, team-based approach. This drastically reduces the overhead and inefficiencies that plague traditional brokerages. We operate smarter, so we can charge less and pass those significant savings directly to you, the homeowner.
Why Trust 1 Percent Lists? It All Started Right Here.
In an industry filled with big-name franchises, our story is unique, and it’s rooted right here in our community.
The Birthplace of a Nationwide Movement
Before there were dozens of 1 Percent Lists franchises in states across the country, there was one office right here on the Northshore. 1 Percent Lists was born in our community, founded by Grant Clayton on the simple, powerful principle that homeowners in places like Mandeville, Madisonville, and Slidell’s Eden Isles deserve to keep more of their hard-earned equity.
We are not just another discounter trying to gain market share. We are the original innovators. The success and fairness of our model, proven right here in Southeast Louisiana, is what sparked a nationwide movement toward a more equitable way to sell real estate. When you work with us, you’re working with the pioneers of the 1% commission model.
We Know the Covington, Mandeville, and New Orleans Markets
Our roots give us an unmatched understanding of the local real estate landscape. We don’t just see data; we see communities. We understand the unique appeal of life in Covington, the draw of the top-rated Mandeville school district, and the complex dynamics of the New Orleans housing market. This deep local expertise allows us to price your home more accurately, market it more effectively, and negotiate with more authority.
Ready to Calculate Your Savings?
Now that you understand how the buyer’s agent commission works, the fear of the unknown is gone. All that’s left is the exciting reality of how much you can save.
See How Much You Can Save on Your Home Sale
Think about what you could do with an extra $10,000, $15,000, or even more. Would you take that dream vacation? Renovate the kitchen in your new home? Or simply enjoy the peace of mind that comes with a healthier bank account? The traditional 6% commission model is no longer the only option. You have a choice—a choice that puts thousands of dollars back in your control.
Get Your Free, No-Obligation Home Valuation Today
The next step is simple. Contact 1 Percent List HUB today to find out what your Covington, Mandeville, or New Orleans area home is worth. We’ll provide you with a free, no-pressure home valuation and a clear, transparent breakdown of your potential savings. Use our online savings calculator for an instant estimate, or reach out to one of our local experts for a personalized consultation. No pressure, just powerful information to help you make the best decision for your financial future.
