The Real Value Behind a Real Estate Commission
I recently spoke with a homeowner interested in selling his small, three-bedroom, one-bath home — just over 1,000 square feet — in a desirable shoreline neighborhood.
His first question to me was, “Will you reduce your
commission?”
I replied that we could discuss commission once he was ready
to meet in person, so I could view his home and provide a proper market
analysis. I also explained that commission is a key element of any effective
marketing strategy — it directly impacts the visibility and desirability of a
property and that would be evident when I provided him with a marketing plan
tailored specifically for his home.
Apparently, he didn’t like that answer. Instead of
scheduling a meeting with me, he chose to meet with other agents, shopping
around for the lowest commission. Eventually, he found someone who agreed to a
discount and let me know he no longer needed my services. Based on the value of
his home I estimate he may be saving $2,500 to $5,000.
But is he really saving?
His first question shouldn’t have been about reducing
commission. It should have been, “What will you do to earn your
commission?”
Had we met, I would have shared an aggressive, tailored
marketing plan designed to generate strong interest — likely resulting in
multiple offers and a higher sale price that would have far outweighed any
commission savings.
The nationally known brokerage he chose is known for
initially limiting new listings to internal agents only — what’s called a
“private listing” period. This often results in quick offers before the
property is available on the full Multiple Listing Service (MLS). Such limited
marketing does not necessarily get sellers the highest possible price
and best terms.
Did he ask his agent how they planned to market the property
beyond the basics — an MLS listing, Zillow, a yard sign, and professional
photos?
Here’s a snapshot of the marketing strategy I had prepared
for his home:
- Paid
Targeted Social Media Ads
Have you noticed those ads on your Facebook feed? Social platforms collect data that allows advertisers like me to precisely target likely buyers — such as first-time buyers, downsizers, or couples and families looking for a beach area retreat.
- A
Dedicated Website and Domain Name
A custom domain (e.g., 123AnyStreetUSA.com) showcases the property with photos, videos, mortgage info, and more — perfect for social media campaigns and ideal for buyers who want instant access to details before scheduling a showing.
- Audience-Specific
Messaging
In addition to casting the widest possible marketing net for all home listings, strategic niche-specific marketing can speak directly to the most likely buyer. Because of its size and location, this cozy, beach-adjacent home is ideal for target marketing to potential buyers with particular interests or characteristics.
- Commission
Structure That Attracts Showings
Discount brokers often reduce the commission offered to buyer's agents, not their own. That means buyers may be asked to cover their agent’s fee — potentially deterring showings to buyers who may be well-qualified but have limited resources.
But none of that mattered to him. He was focused solely on
saving a few thousand dollars.
Meanwhile, a recent listing of mine — priced under $600,000 —
generated dozens of showings, an open house with more than 75 attendees, and
multiple offers. It ultimately sold to a New York couple for more than $100,000
over asking. (I jokingly call that “crazy New York money!”)
That result didn’t come from cutting corners on commission — it came from smart, strategic marketing.
Thinking about buying or selling a home in Connecticut? I'm here to guide you. Whether you're searching for the right place to call home or preparing to put your property on the market, it's more than just a transaction — it's a journey.
I'd be honored to take that journey with you.
Let’s talk.
