The Real Cost of Real Estate: Why the Commission Conversation Is Long Overdue

The Real Cost of Real Estate: Why the Commission Conversation Is Long Overdue

After nearly three decades in real estate, I’ve seen the industry evolve dramatically. Yet one thing has remained surprisingly unchanged: how we structure professional fees. It’s time for a frank conversation about value, professionalism, and why real estate must stop being treated like a free trial service. I'll start with what I believe is a perception shift. I don’t use the word “commission.” I use “professional fee” because what we deliver is expertise, not a transaction. That’s not just semantics—it reflects the level of service, strategy, and accountability we bring to the table. It’s a distinction that matters.

Commissions Haven’t Changed—But Everything Else Has

The commission most sellers pay today is the same commission they were paying decades ago. Let that sink in.

In what other industry has the cost of professional services stayed flat for decades, especially when the asset being represented—your home—has likely doubled, if not tripled, in value?

Sellers understandably celebrate when their home appreciates in value, a win we help make possible. But it’s ironic how often a request for a fee reduction follows that success. It’s a disconnect worth reconsidering.

The Pre-Listing Period Is a Level 10 Experience

Getting a home to market is not a turnkey process. It’s strategy, sweat, and countless hours of preparation. It involves:

• Pricing analysis and data-driven market research

• Staging consultations, vendor coordination, and contractor calls

• Multiple in-person visits at inconvenient times

• Elbow grease: rearranging furniture, replacing light bulbs, and—yes—clearing out closets ourselves when needed

I’ve done things I never imagined when I got into this business. But we do it because presentation matters. We do it because the return is tied directly to the prep. That work has value, and it deserves fair compensation.

On the Buy Side: A Broken Model No One Would Accept Elsewhere

Imagine touring a client through a dozen neighborhoods, dozens of homes, running comps, advising on offers, calming nerves—and then hearing, “We’re just going to think about it.” Next thing you know, they’ve purchased a home with someone else… or worse, gone directly to the listing agent.

Would we expect a lawyer to offer free counsel “just in case" you decided later they were the one? Would we expect our CPA to file our taxes as a test run? 

Of course not.

The new buyer broker agreement rule corrects this. It acknowledges what should have always been true: if someone is working for you, they deserve to be paid.

Our Public Perception Problem Starts With Us

Let’s address something uncomfortable: real estate agents routinely rank near the bottom of Gallup’s annual list of most trusted professions. Real estate professionals still rank too low in public trust. That perception needs to change, and it starts with how we, as an industry, value and present our work.

We can’t demand respect while discounting our own value. Real change begins when brokers stop apologizing for their expertise and start trading it only for proper, fair compensation.

"We Want a Break on the Commission?" 

My answer? No—and not out of inflexibility, but out of clarity. “No” is a complete sentence when it protects the integrity of the process and the value of the work.

This business has taught me that the way something begins is almost always how it will go. If a client starts by questioning your worth, you can count on second-guessing, nickel-and-diming, and a fractured process the whole way through. Sure, I’ve made exceptions, but they’re just that: exceptions. Reducing our professional fee is a rare, intentional move made only when it benefits both sides. It’s never assumed, and it’s never casual. Value doesn’t get a markdown.

I’ve learned that lesson the hard way. And I’ve learned not to repeat it. Knowing when to walk away is not a weakness—it’s wisdom.

We Know Our Value. And We Deliver.

This isn’t a hobby. It’s not a part-time side hustle. This is a career built on strategy, service, and results.

We’ve led hundreds of successful transactions. We have the credentials. We have the testimonials. We know the market better than most. If you're looking for a team that delivers, we’re ready.

But if you’re looking for discounts, debates, or DIY real estate advice, we may not be a fit. And that’s perfectly fine.

Because here’s the truth: Others don't have to lose for you to win. 

— Craig Hogan & Rudy Zavala
Hogan Zavala Group | Engel & Völkers Chicago

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