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Are Listing Agents Worth 2.5–3%?
And the fun continues. This is so important that our co-founder split it up into 2 sub-chapters . . .
Part 2 – The Modern Reality Check
This is the continuation of our deep dive into what listing agents actually do for a seller—and whether those services justify a 2.5–3% commission.
Spoiler: in today’s world, the answer is usually not.
1. Bringing a Buyer (Marketing That Works)
Yesterday, I hinted at one of the main reasons I chose my agent: her marketing savvy.
She created a high-quality, easily shareable digital flyer for my Breck cabin. I clicked one button, posted it on Facebook and other social media sites, and the engagement was instant. She’s also planning blast texts to local buyer pools, outreach to nearby homeowners, and video content across her own social channels.
This is what separates the great agents from the pack.
Anyone can put your home on the MLS—but only a few have a true marketing playbook.
Does it move the needle more than just listing on MLS?
I still have doubts, but I’m open to being proven wrong.
Pro Tip
This is one area where a good agent can actually earn their commission. When you interview agents, drill down into specifics:
- What is their marketing strategy?
- What platforms do they use?
- How do they target buyers?
- Will they show you proof of the results?
If they can’t answer clearly, move on.
That said, with AI evolving this fast, agents are already losing their marketing edge. Tools that automate copy, create videos, and target buyers algorithmically are democratizing what used to be an “agent advantage.”
It’s only a matter of time.
2. Negotiating the Deal
There’s an old legal saying:
“A lawyer who represents himself has a fool for a client.”
The same logic applies to FSBO sellers trying to negotiate their own deal—especially when the home carries emotional weight. Pride, attachment, urgency—those emotions can cloud judgment fast.
A third party can absolutely help. But does that third party have to be an agent?
Not necessarily.
You know who’s often better equipped and cheaper?
An attorney.
As I mentioned before, a local real estate attorney quoted me $1,500 to handle a full deal—representing one side only. That’s what fiduciary duty is supposed to look like. And bonus: attorneys can legally draft and modify contracts, addenda, and contingencies.
Agents can’t do that.
If you need negotiation help, hire an attorney, not an agent.
3. Getting to the Closing Table
Here’s where things get interesting.
The logistics of shepherding a transaction to closing—especially on the sellers’ side—are not complex.
And this is exactly where AI is about to shine.
Document checklists, deadlines, compliance reminders, communication automation—AI can (and will) handle all of it more efficiently than humans.
For sellers, this phase will soon be as simple as using TurboTax for your taxes.
No agent is needed here either.
In Closing
Let’s be brutally honest:
In a modern-day real estate transaction, especially for sellers, a full-service agent charging 2.5–3% will soon be a relic of the past.
With a little initiative and a few smart tools, you can replicate most of what agents do for a fraction of the cost.
Here’s the modern formula for empowered sellers:
- Talk to multiple agents for pricing insights — then verify with AI and your own research.
- Use a low-cost MLS broker to get your listing online.
- Hire an attorney for negotiation and contract drafting.
- Leverage AI to manage communication, documents, and timelines.
And if you still decide to use a full-service agent, don’t pay more than 1.5%.
Because today, that’s what fair value looks like.
