For decades, homeowners accepted the idea that listing a home required paying a 2.5% to 3% commission. According to Justin Santolaya, that assumption has outlived the market conditions that once justified it.
“The old 3% listing model doesn’t transfer cleanly to today’s pricing environment,” Santolaya says. “Sellers should be asking why they’re paying more if the service and outcome don’t improve.”
The persistence of high listing fees has less to do with marketing costs and more to do with internal brokerage economics. Many traditional brokerages require agents to give up a significant portion of their commission—often 20% to 40%—before the agent ever sees a dollar. “That structure limits flexibility,” Santolaya explains. “Agents aren’t charging more because it costs more to sell the home. They’re charging more because their split demands it.”
As a result, sellers absorb higher fees to support a business model they didn’t choose and don’t benefit from.
What sellers actually need, Santolaya argues, is not a higher commission but stronger execution. Pricing strategy, negotiation skill, communication, and presentation guidance determine outcomes—not the percentage on the listing agreement. “Sellers don’t need a 3% listing fee,” he says. “They need a Realtor who can protect their price and help them net more.”
Santolaya built his business around that principle. By operating without traditional split pressure, he offers a 1% listing commission while maintaining full-service representation. For sellers, the difference is tangible. Lower fees directly preserve equity, while experience and execution remain intact.
Concerns about reduced service, he notes, are understandable—but misplaced. Full service is defined by performance, not price. Strong marketing, clear communication, and disciplined negotiation are not exclusive to higher commissions. “Those things aren’t tied to a 3% fee,” Santolaya says. “They’re tied to how the business is structured.”
As sellers become more sophisticated, listing fees are increasingly evaluated like any other business expense. “A higher fee doesn’t guarantee a higher sale price,” Santolaya concludes. “But keeping more of your equity is guaranteed when you choose a model built for today.”
In a market where margins matter, the smartest sellers are no longer paying out of habit. They’re paying attention.
