As a real estate agent and broker, myself, I’ve come to see a fundamental flaw in the traditional compensation model: agents are often overpaid. Admittedly, this is a difficult statement for many in the industry to accept, but an objective look at the profession reveals that agent commissions are inflated by inefficiencies, outdated practices, and misaligned incentives.

Here’s why I believe it’s time for change—and how it benefits everyone:
 

1. PROSPECTING TAKES TOO MUCH TIME, NOT HELPING CLIENTS

Most agents spend more time chasing leads and spending on advertising than actually guiding clients. These costs—brokerage splits, lead generation, team fees—drive up fees unnecessarily. If agents focused more on client service and less on prospecting, commissions could be lower, saving buyers and sellers money.
 

2. OVERPAYMENT FOR TIME SPENT WITH CLIENTS

On an hourly basis, many agents earn hundreds of dollars per hour—despite minimal education requirements (e.g., just 90 hours of coursework in West Virginia). If agents shifted focus from chasing new business to serving current clients, fees could decrease without harming their income.
 

3. BROKERAGES AND TEAMS DRIVE UP COSTS

High brokerage fees and team splits—sometimes up to 60%—inflate commissions. These costs often cover internal expenses rather than enhanced service. Streamlining operations could lower agent costs and save consumers money.
 

4. EXCESSIVE FEES SUPPORT AN OVERSATURATED MARKET

High commissions allow too many agents to stay afloat, leading to stiff competition and decreased quality of service. Lower fees would mean fewer agents competing over the same clients, allowing professionals to focus on delivering value rather than just securing leads.
 

5. LACK OF FEE VARIETY LIMITS CONSUMER CHOICE

Most agents charge similar rates, regardless of experience or skill. A healthy market should offer different pricing models based on expertise, giving consumers more transparency and options tailored to their needs and budgets.
 

CONCLUSION:

Reforming agent compensation could make real estate more affordable and efficient for everyone. By shifting focus toward service and value, both consumers and agents stand to benefit from a fairer, more transparent industry.