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Ex-Agent Questions 5% Commission on $900K Condo

Yahoo Finance •
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A former real estate agent preparing to sell a $900,000 condo in Southern California is questioning why sellers still pay 5% commission, which amounts to $45,000 on high-priced properties. The agent, who worked on both coasts, argues that modern technology has reduced agents' workload while commission percentages remain unchanged.

The frustration stems from the perception that agents simply list properties on the MLS, hold occasional open houses, and facilitate paperwork—tasks the former agent believes don't justify five-figure fees. In markets like New York, attorneys handle much of the transaction paperwork anyway, further reducing agents' role. The higher home prices climb, the more noticeable these commissions become to sellers.

Reddit commenters debated whether commission should scale with price, with some arguing that selling a $1 million home doesn't require several times more work than selling a mid-priced property. While some defended agents' comprehensive services including negotiations and marketing costs, others noted that buyers often find properties online before agents get involved. The exchange highlights growing tension between traditional commission structures and sellers' expectations in an increasingly digital real estate market.