Grant Clayton’s Bold Truth: How 1% Commission Brokers Unlock Affordability for First-Time Homebuyers

The dream of homeownership feels increasingly out of reach for many first-time buyers. Spiraling prices, high interest rates, and the daunting down payment often steal the headlines. These are certainly significant hurdles.

Yet, there’s an elephant in the room that few in traditional real estate dare to discuss openly. This hidden burden indirectly inflates prices and suffocates entry-level markets, hindering first-time buyer affordability.

As Grant Clayton, founder of 1 Percent Lists, I’m here to lay bare the ‘why’ behind this struggle, and it’s a truth many in the traditional real estate world would rather you not hear. The antiquated and bloated system of real estate transaction costs plays a starring, villainous role.

This article will expose how the radical efficiencies and savings generated by discount real estate brokers, particularly our 1% commission model, don’t just benefit sellers. They are a critical, often overlooked, lever for making homeownership accessible and improving first-time buyer affordability.

We believe making homeownership possible for more individuals strengthens communities and builds generational wealth.

The Unseen Burden: How Traditional Commissions Stifle the Market

The “Standard” 5-6% Commission: An Outdated Relic

Let’s talk about the bedrock of traditional real estate transactions: the 5-6% commission. This fee structure typically splits between the listing agent and the buyer’s agent. It’s a system deeply rooted in historical practices.

This percentage has remained stubbornly high for decades, seemingly impervious to progress. This persistence exists despite massive technological advancements and profound market shifts.

It’s a fee structure that belongs in a bygone era, a relic ill-suited for our technologically advanced present. It’s time for a debate on its relevance, especially when considering How Do Real Estate Commissions Work today.

The Ripple Effect: Inflated Prices and Reduced Inventory

Sellers are not charities. They must factor the hefty commission into their asking price. This practice inevitably leads to higher list prices across the board, impacting first-time buyer affordability.

Beyond pricing, high selling costs can discourage potential sellers. They might delay listing their homes, which reduces the much-needed inventory of entry-level properties. First-time buyers are typically seeking these starter homes.

When homes are priced higher to absorb commissions, there’s less room for aggressive pricing strategies. This means less negotiation leverage for buyers, who are already stretched thin. The cycle of high low commission real estate prices continues.

This is a direct impediment to affordable homeownership. The real estate savings simply aren’t being passed down.

Technology’s Promise vs. Industry’s Stagnation: The Unshared Savings

The Digital Transformation of Real Estate

The real estate industry has been fundamentally reshaped by technology. We’ve seen an explosion of online listings, immersive virtual tours, and secure e-signatures. AI-driven marketing and streamlined communication platforms are commonplace.

These innovations have dramatically reduced the time and effort required for real estate transactions. Significant efficiencies have been gained in marketing, lead generation, communication, and transaction management over the past two decades.

The process of buying and selling a home is undeniably simpler and faster for agents today than it was twenty years ago. The tools we have at our disposal are incredible.

Where Did the Savings Go? The Traditional Brokerage Black Hole

Despite these undeniable efficiencies, traditional brokerages have largely maintained their high commission rates. They have, in essence, captured the savings for themselves.

The truth is, while technology has made our jobs as Realtors easier and more efficient, the enormous savings have rarely been passed down to the very people who power the housing market – the home sellers and, by direct extension, the struggling first-time buyers. This is a fundamental failure of the traditional model.

These technological dividends have primarily padded broker profits. They haven’t been passed down to the consumers who fuel the market and desperately need real estate savings. This creates a barrier for first-time buyer affordability.

This stagnation in pricing, despite increased efficiency, highlights the broken aspects of the traditional system. It’s why discount real estate brokers exist.

1 Percent Lists: The Disruptor Unlocking Market Potential

Our 1% Commission Model: Full Service, Unbeatable Value

At 1 Percent Lists, we challenge this outdated paradigm head-on. Our unique value proposition is straightforward: we provide the exact same, full-service Realtor duties as traditional brokers. This includes professional photography, marketing, showings, negotiations, and contract management.

However, we do it for only 1% of the home’s sales price in commission. This model directly translates the efficiencies gained from technology into tangible, thousands-of-dollars savings for sellers. These savings are not a myth.

We’re not cutting corners or compromising on service; we’re simply cutting outdated, bloated costs. We leverage technology smartly and strategically to deliver full service without the full, unnecessary price tag. It’s a fundamental shift, not a reduction. For more insights, consider advantages of a discount broker.

The Grant Clayton Philosophy: Saving Sellers, Empowering Buyers

The vision behind 1 Percent Lists extends far beyond just saving individual sellers money. We see our 1% commission model as a market-correcting force.

This force is designed to re-inject fairness and efficiency into the real estate ecosystem. It’s about more than just one transaction; it’s about shifting the market for everyone.

By reducing the financial burden on sellers, we create a ripple effect. This helps to foster a healthier and more accessible housing market for all. Our low commission real estate approach is about broad impact, not just individual gains.

The Indirect, Yet Profound, Impact on First-Time Buyer Affordability

More Aggressive Pricing for Sellers

With thousands saved on commission, sellers are empowered to price their homes more competitively and aggressively. This isn’t just a slight adjustment; it can be substantial.

Lower listing prices directly benefit buyers, especially first-timers. These buyers are often operating on tight budgets and are highly sensitive to every dollar. Every dollar saved on the purchase price is a dollar they can put towards other costs or simply keep in their pocket.

Consider this illustrative example: A seller saving $10,000 in commission can drop their asking price by $5,000 and still net significantly more. That $5,000 price difference can literally make homeownership possible for a first-time buyer struggling with down payments or loan qualifications.

Stimulating Inventory and Market Liquidity

Reduced selling costs act as a powerful incentive. They encourage more homeowners to list their properties, thereby increasing the much-needed housing supply. This is crucial for first-time buyer affordability.

A healthier, more active market with more options means better chances for first-time buyers to find suitable homes. It also means less intense bidding wars, which can quickly price them out of the market.

More inventory leads to a more balanced market. This inherently benefits those entering homeownership for the first time.

The Chain Reaction: Lower Overall Transaction Costs

When sellers consistently save on commission, the overall cost basis of homes in the market begins to shift downward over time. This isn’t an overnight change, but a sustained pressure on pricing.

This creates a more accessible, lower-cost entry point for new homeowners. It fosters a more sustainable and equitable housing market for future generations. We are making homeownership possible for more people.

The impact of low commission real estate reverberates throughout the entire market, improving first-time buyer affordability in tangible ways.

Conclusion: A Call for a More Accessible Future in Real Estate

It’s time to recognize a fundamental truth. Discount real estate brokers, and specifically the 1% commission model championed by 1 Percent Lists, are not just a benefit for sellers. They are a fundamental, often overlooked, solution for improving first-time buyer affordability.

The imperative is clear: modern technological efficiencies must finally be passed down to the consumers. This is a matter of market fairness and economic sense.

Grant Clayton’s vision for 1 Percent Lists goes beyond mere transactions. We are not just a brokerage; we are a movement.

We are a loud and unwavering voice for market fairness, transparency, and accessibility in real estate. We are here to challenge the status quo. This isn’t just about commissions; it’s about leveling the playing field, challenging the status quo, and ensuring the American dream of homeownership isn’t just for the privileged few, but for every hard-working individual ready to invest in their future.

I encourage readers, especially first-time buyers and those considering selling, to understand the full, often hidden, costs of traditional real estate transactions. Don’t simply accept the established norms without question.

Explore alternative, modern models like 1 Percent Lists when you are ready to buy or sell. This benefits not only yourself but also contributes to a broader, more equitable market. This challenge to the industry’s outdated norms is key for a more accessible future in homeownership. This sentiment is echoed in conversations about commission overhauls, such as those discussed in The Appraisal Reckoning.