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Does a Higher Real Estate Commission Mean Better Service?

Writer: Caleb Cooke
Caleb Cooke
Sep 29
4 min read

For decades, homeowners have been conditioned to think about real estate commissions in a surprisingly simple way:


Higher commission = better agent.


But why?


If one listing agent charges 3% and another charges 1.5%, is the 3% agent automatically twice as experienced? Twice as skilled? Are they spending twice as much marketing the property? Are they producing better photography, better video, running more advertising, reaching more buyers, or providing twice the service?

Of course not.


The percentage an agent charges is a business model. It is not a quality rating.

And if you're preparing to sell your home, that distinction matters.


Stop Asking Only, “What Do You Charge?”


Commission is an important question.

It just shouldn't be the only question.

Imagine interviewing two agents.


Agent A charges 3%.

Agent B charges 1.5%.


If you stop the conversation there, you might assume Agent A provides the more premium service.


Now dig a little deeper.


Ask both agents:


Who is photographing my home?


Who is creating the video?


What kind of video are you producing?


Are you creating additional social media content after the listing launches?


How much money are you personally budgeting to market my property?


Where will that advertising money actually be spent?


Who are you trying to reach?


What is your strategy if the house doesn't sell during the first month?


Suddenly, the commission percentage tells you very little.

The answers to those questions tell you almost everything.


What Are You Actually Paying For?


This is the question I believe more sellers should ask.


When an agent proposes a listing commission, ask them to explain exactly what you're receiving in exchange.


Not what their brokerage does.


Not how many agents are in their company.


Not how nice their downtown office is.


Not how many postcards they mail with their face printed on them.


What are they doing for your house?


There is a major difference between marketing an agent and marketing a property.

Your listing commission should not automatically be treated as proof that a substantial portion of that money will be reinvested into selling your home.


Ask.

How much is being spent on photography?

Video?

Drone work?

Paid advertising?

Social distribution?

Additional content?

And perhaps most importantly: Who is actually producing it?


Is your agent personally invested in the presentation of your property, or are they hiring the same photographer and ordering the same basic package that every other agent is using?


Those are fair questions when thousands—or tens of thousands—of dollars are at stake.


A 3% Commission Doesn't Guarantee a 3% Experience


There are phenomenal agents who charge traditional commissions.

There are also agents charging traditional commissions who provide little more than photography, an MLS listing, a sign in the yard, and an occasional open house.

The percentage doesn't tell you which one you're hiring.


That's the point.


Likewise, a lower listing commission doesn't automatically mean reduced service.

My listing model starts at 1.5%, but the philosophy behind it isn't about doing less.

It's about operating differently.


I believe professional photography, strong video, strategic social media, digital marketing, compelling storytelling, and thoughtful presentation are some of the most important parts of launching a property today.


So that's where I focus.


I'm not asking sellers to pay more simply because that's what real estate commissions have traditionally looked like.


I'm asking them to evaluate the work.


Marketing a Home Is a Skill


Having a real estate license does not automatically make someone a marketer.

Neither does selling a lot of houses.

An agent can be extremely knowledgeable about contracts, negotiations, neighborhoods, pricing and transactions while still being mediocre at presenting a property to the public.


Those are different skills.


When I'm hired to sell a home, I don't believe my job is simply to place it into the MLS and wait for buyers to find it.


I'm thinking about:


How does this property look online?

What makes someone stop scrolling?

What makes them watch the video?

What makes them imagine living there?

What story does this property tell?

How do we reach buyers who may not already be searching for this exact house?


That's marketing.


And in a world where the first showing often happens on someone's phone, presentation matters.

Interview Your Listing Agent Like You're Hiring Someone


Because you are.

Selling a home may be one of the largest financial transactions of your life.

You should feel completely comfortable asking a prospective agent detailed questions about their business.

Ask who they hire for photos.

Watch their listing videos.

Look at their social media.

Ask what they plan to spend on your home.

Ask who creates their content.

Ask what happens after the initial listing launch.

Ask what their strategy is on Day 10, Day 30 or Day 60.

And ask them to explain their commission.


A good agent should be able to clearly articulate their value without relying on:

“That's just what agents charge.”

Tradition isn't a marketing plan.


Don't Hire a Percentage. Hire a Plan.


Real estate commissions have been discussed the same way for a long time.

Maybe it's time sellers started looking at them differently.

A 3% listing agent might provide extraordinary value and be worth every penny.

Another 3% agent might do the bare minimum.

A 1.5% agent might provide limited service.

Or they might provide professional media, aggressive marketing, extensive content and a level of hands-on service that exceeds what another agent offers for twice the fee.


You won't know from the percentage.


You have to look at the agent.

Look at their work.

Look at their skills.

Look at their marketing.

Look at their plan.

And most importantly, ask where your money is actually going.


Because the question sellers should be asking isn't:

“What does a good Realtor charge?”

It's:

“What is this Realtor going to do to sell my house?”

That's a conversation worth having.

Beautiful North Idaho Home

 
 
 

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