Ex-Southern California Real Estate Agent Selling $900K Condo Asks Why People Are Still Paying 5% Commission — 'Shelling Out 45K' For MLS Listing 'Seems Crazy'

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Jeannine ManciniMon, March 2, 2026 at 4:01 PM GMT+1 12 min readBenzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.Selling a $900,000 condo sounds like a solid payday — until the closing statement reminds the seller that roughly $45,000 won't be coming home with them.That's the math frustrating one former real estate agent who worked in Southern California and on the East Coast. Now preparing to sell, the commission looks very different from this side of the deal."I was an agent in SoCal for a few years. Also sold on the east coast. I know what agents do and don't do," the former agent wrote in a Real Estate subreddit post.The issue isn't confusion about the process. It's frustration over the percentage. "I'm curious why sellers are still handing over so much money to a service that really doesn't do much. Again, I was an agent, I know the job."Don't Miss:Bad Ads Live Forever — See How This AI Helps Fortune 1000 Brands Avoid ThemInvest Like Hollywood's Elite: Own a Stake in Valley Wellness' Luxury Behavioral Health RetreatOn a $900,000 condo, 5% equals $45,000 paid at closing. "Shelling out 45k for someone to load the information on the MLS and maybe hold an open house and meet a few buyers seems crazy," the post continued. In New York, the former agent added, attorneys handle much of the paperwork anyway.The frustration isn't about writing a check. It's about watching profit shrink.The higher home prices climb, the more noticeable the commission becomes.Several replies latched onto that math. One Redditor questioned why a flat percentage makes sense at all, asking whether selling a $1 million home truly requires several times more work than selling a mid-priced one. Another pointed out that in many transactions today, buyers already find the property online before an agent ever gets involved.When the tasks look similar but the payout multiplies with price, sellers start wondering what exactly scales.That doesn't mean the thread turned into a pile-on.Trending: Own a Piece of the First-Ever Atari Hotel — Starting at $500One experienced agent pushed back hard, arguing the job involves constant phone calls, negotiations, inspections, marketing costs, licensing fees, and deals that collapse after weeks of work. Another commenter bluntly said the commission often pays for handling difficult personalities and unpredictable transactions so sellers don't have to.The exchange exposed the real divide.To the seller staring at the settlement sheet, 5% looks like a slice of equity disappearing.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,816.63 -64.99 (-0.94%)Dow 3048,501.27 -403.51 (-0.83%)Nasdaq22,516.69 -232.17 (-1.02%)Russell 20002,608.36 -47.59 (-1.79%)VIX23.57 +2.13 (+9.93%)Gold5,113.70 -10.00 (-0.20%)Trending tickersCRWD CrowdStrike Holdings, Inc. 391.42 +6.56 (+1.70%)MOBX Mobix Labs, Inc. 1.1200 +0.9430 (+532.77%)MU Micron Technology, Inc. 379.68 -32.99 (-7.99%)TGT Target Corporation 120.80 +7.63 (+6.74%)MRNA Moderna, Inc. 49.83 -3.01 (-5.71%)PortfolioSign in to access your portfolioSign inTop gainersKTB Kontoor Brands, Inc. 78.18 +13.36 (+20.61%)INGM Ingram Micro Holding Corporation 24.41 +3.06 (+14.33%)INTA Intapp, Inc. 26.14 +2.70 (+11.52%)TDW Tidewater Inc. 87.67 +7.80 (+9.77%)AVAV AeroVironment, Inc. 228.30 +19.98 (+9.59%)Top losersMDB MongoDB, Inc. 252.73 -72.28 (-22.24%)STNE StoneCo Ltd. 13.73 -3.30 (-19.38%)LIF Life360, Inc. 43.97 -9.82 (-18.26%)SE Sea Limited 87.82 -17.39 (-16.53%)ALG Alamo Group Inc. 184.78 -33.69 (-15.42%)Most activePLUG Plug Power Inc. 2.2300 +0.4200 (+23.20%)NVDA NVIDIA Corporation 180.05 -2.32 (-1.27%)ONDS Ondas Inc. 10.02 -0.65 (-6.09%)AAL American Airlines Group Inc. 12.46 -0.06 (-0.48%)F Ford Motor Company 12.70 -0.69 (-5.15%)Top economic eventsEarnings eventsMy earnings eventsEarnings events