Understanding Commission Options When Listing a Home

There’s more than one way to pay your REALTOR®, but not all methods are created equal. Here's what you need to know:

1. Performance-Based Model

This model ensures your REALTOR® only gets paid after you’ve accepted an offer and the buyer has taken possession. It means your agent is motivated to get you the best price and service possible—your success is their success. This commission amount is negotiated at the onset between the seller and the agent.

2. Flat Fee or “Mere Posting”

This option asks you to pay upfront, regardless of whether your home sells. Need staging, photography, or negotiation help? That’s extra. Plus, many sellers forget they’re still expected to pay the buyer’s agent too—often half of the commissions paid in the performance based model. 

It seems cheaper at first. But by the time you’ve paid upfront costs and handled your own marketing and negotiations, your savings evaporate. Worse, one wrong move on disclosures, measurements, surveys, compliance, paperwork or pricing can cost you thousands. This may be a good option for those who want to save at least some money, have the time and knowledge to do the work involved or have expectations that don't align with the market analyses received from agents interviewed. Keep in mind most if not all performance based agents can do mere postings if they choose allowing the seller to work with the brand and agent of their choosing.  

Representation Matters

A REALTOR® working under a performance model acts as your fiduciary—bound to protect your best interests. In contrast, flat fee services often treat you like a customer, with no obligation to advocate on your behalf. It’s the difference between having a teammate and being on your own.

Your home deserves more than a posting—it deserves a professional strategy.