The 6% commission Is dead – so why are sellers paying more than ever?
By Korey Welch, Owner of Boom Realty
and Senior Mortgage Broker, Loan Factory
For the past year, consumers have been hearing about the massive changes happening in the real estate industry following the National Association of Realtors settlement.
The public was told these changes would create more transparency, more competition, and ultimately save home sellers money.
But here’s the question many sellers are now asking: If the 6% commission model is supposedly dead, why are so many people still paying it?
In some cases, sellers are actually paying more than they were before.
Welcome to what I call “The Great Real Estate Fee Shell Game.”
What consumers thought would happen
The average homeowner believed the new rules would finally force real estate commissions to become more competitive.
The assumption was simple:
• Buyers would negotiate directly with their own agents
• Sellers would no longer feel pressured to pay inflated commissions
• Overall transaction costs would come down
That sounds great in theory. But theory and reality are often two very different things.
What actually happened
Instead of lowering costs, many large brokerages simply shifted how the fees are structured.
I’m now seeing listing agents charging 2.5%, 3%, and even 3.5% just for the listing side alone. Then, on top of that, sellers are still often encouraged – or pressured – to offer compensation to buyer agents as well.
Do the math.
Suddenly the seller is right back at 5%-6% total commission – sometimes even more once administrative fees, transaction fees, or other junk charges are added in.
And this is happening during one of the strongest real estate markets we’ve seen in years.
Homes today receive more online exposure than ever before through the MLS and websites like Zillow, Redfin, and Realtor.com.
So sellers should be asking themselves:
Why am I paying more for exposure that already exists?
When the system gets gamed – what concerns me even more is how some transactions are now being structured behind the scenes.
I recently dealt with a situation where an agent created a buyer agency relationship during the transaction, effectively positioning themselves to collect compensation from multiple sides of the deal while increasing the overall cost to the seller.
Technically? The paperwork may have checked out.
Ethically? That’s another conversation.
These are exactly the types of situations consumers need to pay attention to moving forward. The average seller often assumes their agent is fully aligned with their best interests, but whenever compensation structures become too flexible, conflicts of interest can start creeping into the transaction.
At the end of the day, sellers deserve transparency – not commission games.
Bigger office doesn’t mean better results
One of the biggest myths in real estate is that a large national brand somehow gives your home more exposure.
The truth is, buyers are finding homes online. The MLS syndicates listings everywhere. Buyers scrolling through homes on their phones don’t care whether the listing belongs to a national franchise or a small independent brokerage.
What they care about is:
• Price
• Presentation
• Photos
• Condition
• Location
• Whether the home stands out online
Selling real estate today is a lot like online dating. If the first impression is bad, buyers simply keep scrolling. That’s why professional photography, strong marketing, pricing strategy, and negotiation skill matter far more than fancy office buildings and big corporate logos.
What sellers should focus on instead
If you’re thinking about selling this spring, focus on these questions:
• What are my actual net proceeds after fees?
• Is the commission structure transparent?
• How is my home being marketed online?
• Is my agent pricing the home strategically?
• Does the value provided justify the fee being charged?
Those questions matter far more than what company name appears on the sign in your yard.
Final thoughts
The real estate industry is changing rapidly, and consumers need to be more informed than ever.
At Boom Realty, I’ve spent the last 26 years helping sellers navigate this business while avoiding unnecessary costs. That’s why I offer a 1% full-service listing commission designed to help homeowners keep more of their equity without sacrificing professional marketing and exposure.
Recently, I sold a $2.8 million home in Falmouth and saved the seller approximately $56,000 in listing commission fees compared to what many traditional brokerages were charging.
Same market. Same MLS exposure. Same online visibility. Just a dramatically different outcome for the seller.
The 6% commission may be dead on paper. But unless consumers start asking better questions, many sellers will keep paying it anyway.
Selling smart starts with understanding where your money is really going. Because in this market, you shouldn’t just be selling your home – you should be selling smart with Boom Realty.
About the Author: Korey Welch, Owner of Boom Realty and Senior Mortgage Broker (NMLS: 14991) with Loan Factory (NMLS: 320841), is a licensed mortgage broker/real estate broker based in Rockland. For more than two decades, Korey has been helping seniors determine the best fit. For a complimentary consultation, contact him at korey@koreywelch.com, 781-367-3351.(NMLS: 320841), is a licensed mortgage broker/real estate broker based in Rockland. For more than two decades, Korey has been helping seniors determine the best fit. For a complimentary consultation, contact him at korey@koreywelch.com, 781-367-3351.
