27/11/2025
This doesnt precisely translate to New Home Sales - but it comes very close. I can't tell you the number of families I've met who chose a builder based entirely on price, and are coming to me this time because of how badly they regret it!
You're not paying a percentage.
You're hiring:
Pricing expertise (worth $50k+ in net proceeds)
Negotiation skills (worth $20k-$40k in your pocket)
Marketing strategy (difference between 4 days and 4 months on market)
Transaction management (prevents $100k mistakes)
Network access (buyers before they hit Zillow)
But sure, save that 2%.
The "discount agent" math:
Agent A charges 5%:
Prices your home at $650k (based on comps)
Professional photos, staging consultation, strategic marketing
Gets 4 offers in 3 days
Negotiates to $675k
Handles inspection saving you $8k in credits
Closes in 28 days
Your net after 5% commission: $607,875
Agent B charges 3%:
Prices your home at $680k (what you wanted to hear)
iPhone photos, no staging advice
2 showings in 3 weeks
Reduces price twice to $640k
One offer at $625k
Buyer demands $12k in repairs (agent doesn't push back)
Closes in 67 days with $9,500 in extra carrying costs
Your net after 3% commission: $587,250
You "saved" 2% in commission.
You lost $20,625 in net proceeds.
Congrats. You played yourself.
What discount agents don't tell you...
They're taking a discount on:
Time spent on your listing
Quality of marketing
Negotiation effort
Availability when problems arise
Network reach
Experience level
You get what you pay for.
The irony:
You'll spend 6 months researching a $1,200 TV.
But you'll hire an agent for your $650,000 house based on who charges the lowest percentage.
Make it make sense, Karen.
