Blog > The Cheapest Agent Can be the Most Expensive Mistake You Make
Everybody wants to save money. I get that. But when a seller picks their agent based purely on who charges the smallest commission, that's usually the decision that costs them the most.
Let's do the actual math, because the math is where this falls apart.
Let's do the actual math, because the math is where this falls apart.
On a $500,000 sale, the difference between a 3% commission and a 2.5% commission is $2,500. That's it. That's the "savings."
Now ask yourself: what is $2,500 worth compared to what an experienced agent can get you back at the negotiating table?(Usually an experience agent will save you much more than than). Because that's really the comparison you're making, whether anyone spells it out for you or not.
A knowledgeable agent doesn't just "handle the paperwork, put your home on MLS and the internet and open homes for people." They catch the repair issue before it blows up your closing. They know how to understand a solid offer that will most likely go all the way to the finish line. They know how to keep a deal together when it starts to wobble, and most deals wobble at some point.
A knowledgeable agent doesn't just "handle the paperwork, put your home on MLS and the internet and open homes for people." They catch the repair issue before it blows up your closing. They know how to understand a solid offer that will most likely go all the way to the finish line. They know how to keep a deal together when it starts to wobble, and most deals wobble at some point.
The agent who saved you half a percent up front? If they don't know how to do any of that, that $2,500 is gone the first time something goes sideways. Sometimes it's gone before you even notice it left.
Here's the part nobody explains when they're selling you on a discount: it's not about what your agent charges. It's about what you net at closing. Those are two completely different numbers, and a good agent's job is to make sure the second one is bigger — even after their commission comes out.
I've been doing this since 1991. I got my start working alongside my dad, who opened this brokerage in 1965, and I've been through enough market cycles — including 2007 — to know exactly what it looks like when a deal starts to fall apart. I've also seen what it looks like when the right agent stops that from happening.
The worst time to find out you hired the wrong agent is the day before closing, when there's no time left to fix it. That's not a scare tactic. That's just when it happens, because that's when the pressure shows up and the inexperience shows with it.
A lower commission isn't a discount. It's a bet. And it's your money on the table.
If you're weighing a sale and want to actually see what different scenarios net you at closing, not just what they cost up front, let's sit down and run the real numbers on your home.
A lower commission isn't a discount. It's a bet. And it's your money on the table.
If you're weighing a sale and want to actually see what different scenarios net you at closing, not just what they cost up front, let's sit down and run the real numbers on your home.
Frequently Asked Questions
Q: Does a lower commission always mean I'm saving money?
A: Not necessarily. A half-percent difference on a $500,000 sale is $2,500. That sounds like savings, until a less experienced agent misses something that costs you far more once you're actually at the table.
Q: Does a lower commission always mean I'm saving money?
A: Not necessarily. A half-percent difference on a $500,000 sale is $2,500. That sounds like savings, until a less experienced agent misses something that costs you far more once you're actually at the table.
Q: What should I actually be comparing when I'm choosing an agent?
A: Not the commission percentage. What you net at closing. Those are two different numbers, and a good agent's whole job is making sure the second one is bigger, even after their commission comes out.
A: Not the commission percentage. What you net at closing. Those are two different numbers, and a good agent's whole job is making sure the second one is bigger, even after their commission comes out.
Q: When do most sellers realize they picked the wrong agent?
A: Usually the day or week before closing, when there's no time left to fix it. That's when repair issues, financing problems, or a shaky negotiations show up — and by then, the "savings" from a lower commission are long gone.
A: Usually the day or week before closing, when there's no time left to fix it. That's when repair issues, financing problems, or a shaky negotiations show up — and by then, the "savings" from a lower commission are long gone.
Curious what you'd actually net on your home? Give me a call — 530-409-8351 — or reach out at zeller123@gmail.com. Let's run your numbers.