Why a 3% Real Estate Listing Commission Is Worth Every Penny (and Why Cutting It Can Cost You Big)
Let’s be honest — talking about real estate commissions can make people as uncomfortable as talking about politics at Thanksgiving. But if you’re thinking about selling your home, it’s one of the most important conversations you’ll ever have. And I’m here to break it down, pull back the curtain, and explain why that 3% listing commission isn’t just “a number” — it’s the fuel that drives your home’s success on the market.
The Myth of “Just a Yard Sign and MLS”
Some sellers believe a Realtor’s job is to:
1. Put a sign in the yard.
2. Enter the home into the MLS.
3. Wait for the phone to ring.
If that’s your perception, you’re right… about the bare minimum. But in today’s competitive market, that’s like showing up to a NASCAR race in a go-kart. You might be “in the race,” but no one’s betting on you to win.
What You’re Actually Paying For
That 3% commission isn’t a “bonus” for the Realtor. It’s the marketing budget that can make the difference between your home selling quickly at top dollar — or sitting unsold for months while buyers scroll past it online.
Here’s what real, professional, high-end marketing looks like:
Professional Photography – No, not your cousin with an iPhone. Magazine-quality photos that make your home irresistible.
Professional Videography & Drone Footage – Because buyers love a Hollywood-style property tour.
Cinematic Video Tours – Tell the story of your home with movement, music, and style.
Global Syndication – Your listing pushed to hundreds of websites worldwide, not just the local MLS.
Zillow Showcase – Premium placement so your listing stands out from thousands of others.
Luxury Listing Websites – Custom domains showcasing your home like a five-star resort.
High-End Property Brochures – Thick, glossy print pieces buyers actually take home.
Strategic Paid Advertising – Sponsored social media campaigns targeting the right audience.
Magazine Features – Local, national, and sometimes even international publications.
High-End Mailers – Direct to buyers and agents who may have interested clients.
And that’s just the beginning.
The Price Tag of Doing It Right
When done properly, real estate marketing isn’t cheap — because it’s not supposed to be. On my luxury listings, I routinely spend $4,000 just to get started. On one current property, I’ve invested over $35,000 in marketing.
And here’s the truth: I’ve lost thousands on homes that never sold, or on sellers who decided to stay. That’s the gamble of real estate — but it’s also the risk I take to make sure my clients’ homes have the absolute best chance to sell for the highest price.
Why Realtors Never Really “Get” 3%
Here’s the part most sellers don’t realize: Realtors don’t actually pocket the full 3%.
That commission gets sliced and diced faster than a chef in a cooking competition:
MLS Fees – The cost of access to the multiple listing service.
Real Estate Board Dues – State and national membership fees.
Transaction Fees – Brokerage and administrative costs.
Marketing Expenses – Photos, videos, ads, mailers, staging, and more.
Taxes – For me, 25–30% of every commission check goes straight to the IRS.
Tithing – I personally give 15% to my church.
By the time all of this is paid, Realtors take home a fraction of that “3%” — and a good portion of it was spent making sure your home was marketed properly in the first place.
The Discount Broker Trap
Here’s where I get blunt: If you use a discount broker, get ready to discount your house.
Think about it — if they’re already slashing their own paycheck before they even start, what do you think they’ll do when it comes time to negotiate yours?
Discount brokers often skip high-cost, high-impact marketing tools because they simply can’t afford them. That means no premium photography, no Zillow Showcase, no targeted paid ads, no high-end mailers, and no real global reach. Sure, you might “save” a percent or two up front, but that savings can vanish instantly when your house sells for $25,000–$50,000 less than it could have.
And yes — we all know who the 1% and 2% Realtors are in OKC. You’ve seen their signs. You’ve seen their marketing (or lack thereof). You’ve seen the difference in results.
It’s like buying the cheapest parachute you can find and hoping it works the same. Spoiler alert: it doesn’t.
Why Cutting Commission Cuts Your Chances
If you negotiate a 1% or 2% listing commission, your Realtor simply can’t afford the level of marketing that gets top results. It’s not that they don’t want to — they just won’t have the budget to:
* Pay for high-end media.
* Run paid global ads.
* Feature your home in premium placements.
That means fewer eyes on your home, fewer buyers through the door, and — ultimately — less money in your pocket.
You Have to Pay to Play
Real estate is like poker: you can’t win big if you don’t put something in the pot. If you want maximum exposure, the highest sale price, and a smooth transaction, you need to work with a full-service Realtor who invests heavily in marketing — and that investment comes from the standard 3% commission.
Why The Agency Delivers Results
At The Agency, we bring global reach to Oklahoma real estate. Our listings benefit from international exposure, luxury branding, and a marketing team that knows how to position your property in front of the right buyers — whether they’re across town or across the globe.
We combine high-end marketing with decades of local expertise to deliver results that discount listing companies simply can’t match.
Wyatt Poindexter
The Agency Oklahoma
405-417-5466
www.WyattPoindexter.com
If you’re considering selling your home, let’s talk about how we can give it the exposure it deserves — and why a full 3% commission is the smartest investment you can make in getting the highest possible price.
