The Blog

Initially, a small percentage like 5, 6 or 7 percent doesn't sound very significant.  Even if you calculate the actual dollar amount of a particular transaction, a $10,000.00 commission doesn't sound so high when you're selling a $200,000.00 home.  But in order to truly understand how sizable a 5% commission is, you need to take a closer look.  Many homeowners don't have more than 10% to 20% equity in their homes.  For the sake of our example, let's assume that you have 10% equity in your $200,000.00 home ($20,000.00).  If you sell your home for $200,000.00 and pay a real estate commission of $10,000.00, you will give a whopping 50% of the equity you have in your home to a real estate agent or agents.  It's your home.  You've made the mortgage payments, paid the taxes and the insurance, maintained the property and lived in it for the past 5+ years.  Doesn't it seem a bit excessive that, after a real estate agent spends roughly 90 to 120 days helping you sell your home, he/she is entitled to half of the equity in your home?  Your home is probably the biggest investment you will ever make.  At The Agency, we will never forget that.  Please stay tuned to The Blog for more information on how the current real estate model is broken.