Do Realtors Deserve Their 6% Commission?

Breaking Down What You Really Pay For When Hiring a Real Estate Agent

If you’ve ever bought or sold a home, you’ve likely heard that a real estate agent earns a 6% commission—typically split between the buyer’s and seller’s agents. On a $400,000 home, that’s a whopping $24,000 in commission fees. It’s no wonder many homeowners ask the question: Do Realtors really deserve that much?

It’s a fair question. In a world where technology has made everything from ride-sharing to investing more DIY-friendly, people wonder why real estate should be any different. After all, can’t you just list your home on Zillow, snap a few photos, and handle the sale yourself?

Let’s unpack that. This post will take a real-world, behind-the-scenes look at what Realtors actually do, how that commission gets split, and whether the value you get is worth the price.

First, What Does That 6% Really Cover?

It’s important to understand that the full 6% commission doesn’t go into one agent’s pocket. In most transactions, it’s split between the listing agent and the buyer’s agent—so that $24,000 becomes $12,000 each. But it doesn’t stop there.

Each of those agents usually splits their half with their brokerage, who provides support, tools, insurance, and compliance oversight. Many agents walk away with about 1.5% to 2% of the total home price after all is said and done.

So, on a $400,000 sale, the individual agent might take home $6,000 to $8,000—before taxes and expenses.

What Do Realtors Actually Do to Earn That?

To the average buyer or seller, it might seem like agents just show a few houses or post a listing online and wait for offers to come in. But the reality is far more involved.

1. Pricing Strategy & Market Research

Realtors use comparative market analyses (CMAs) to determine the right list price. Price too high, and the home could sit on the market for months. Price too low, and you risk leaving money on the table.

Agents analyze:

• Recent sales data
• Local market trends
• Neighborhood conditions
• Buyer demand in your area

This isn’t guesswork—it’s strategic, data-driven, and crucial for a successful sale.

2. Marketing and Exposure

Ever wonder why some homes sell in a week and others sit for months? It usually comes down to marketing.

A good Realtor will:

• Hire a professional photographer
• Stage the home or offer advice on presentation
• List the property on the MLS and major websites
• Create social media campaigns and email blasts
• Network with other agents to promote the property

The more visibility your home gets, the better your chances of receiving multiple, competitive offers. In today’s fast-paced market, professional marketing isn’t optional—it’s essential.

3. Managing Showings and Open Houses

Coordinating private showings, managing open houses, and handling buyer inquiries is time-consuming. Agents work around your schedule to:

• Vet potential buyers
• Ensure security during showings
• Gather feedback for adjustments
• Communicate with other agents

This isn’t a passive process. It takes planning, follow-up, and responsiveness—often outside of business hours.

4. Negotiation Expertise

This is where a great Realtor truly earns their keep. When offers come in, your agent:

• Helps you evaluate each one—not just on price, but on terms, financing, contingencies, and closing timelines
• Crafts counteroffers or responses that protect your interests
• Negotiates through inspection issues or appraisal gaps
• Works to keep the deal from falling apart

Without a skilled negotiator in your corner, you could lose thousands or even jeopardize the entire transaction.

5. Transaction Management & Legal Compliance

The real estate transaction process involves:

• Contracts
• Disclosures
• Inspections
• Appraisals
• Title and escrow coordination
• Legal deadlines

Missing a key document or deadline can cost you big. Realtors manage this entire process, ensuring everything complies with state laws and industry standards.

6. Emotional Support and Guidance

Selling or buying a home is stressful, even in the best-case scenario. Realtors act as:

• Advisors
• Mediators
• Problem-solvers
• Emotional sounding boards

This human element matters. When things get tense—and they often do—a professional who stays calm and focused can make all the difference.

What Happens When You Don’t Use an Agent?

Some sellers consider For Sale By Owner (FSBO) to avoid commission fees. While this route might save money upfront, it comes with trade-offs.

Here’s what FSBO sellers often encounter:

• Homes typically sell for less. Studies from the National Association of Realtors show that FSBO homes often sell for 10-26% less than those listed with an agent.
• Limited exposure. Without access to the MLS or agent networks, your home may not be seen by serious buyers.
• Negotiation pitfalls. Buyers working with agents may have the upper hand in negotiations if you don’t have representation.
• Legal risks. Real estate transactions involve contracts, disclosures, and liability. A small mistake could lead to big consequences.

If you’re not experienced in sales, marketing, contract law, and negotiation, handling the process on your own can become overwhelming—and costly.

Are All Agents Worth 6%?

Let’s be real—not all agents bring the same level of service. Some barely return calls, while others treat your sale like their top priority.

So instead of asking, “Do Realtors deserve 6%?”—maybe the better question is:
“Is the Realtor I’m hiring bringing 6% worth of value?”

Before hiring an agent, ask:

• What is your pricing strategy?
• How do you plan to market my home?
• Can you show me past results or testimonials?
• Will I be working with you directly or your team?
• How will you help me get top dollar?

A top-performing Realtor will welcome these questions—and have answers that give you confidence.

What About Discount Brokerages and Flat-Fee Services?

Over the past few years, companies have popped up offering discount commission rates or flat-fee listings. They may charge 1% or offer limited services for a flat rate. While tempting, the level of service is often reduced.

These models work best for highly experienced sellers who don’t need much support. But for most people, especially in competitive or complex markets, a full-service agent can deliver far more in value than the savings from a discount model.

So, Do Realtors Deserve Their Commission?

The answer depends on the agent. A great Realtor will:

• Price your home correctly
• Market it professionally
• Negotiate like a pro
• Manage every step of the process
• Protect your legal and financial interests
• Reduce your stress

If your agent is doing all that, then yes—they’ve more than earned their commission.

But not all agents are created equal. Do your research, ask tough questions, and hire someone who’s proven they can deliver results.

Because when you’re dealing with one of the biggest financial transactions of your life, cutting corners rarely pays off.