Thinking about selling your home?

Two numbers will help you decide how to structure commissions and even choose a listing agent.

1. The highest price at which you could easily sell today

2. The lowest price at which you would happily sell today

💡 Don't worry – just use your best guesses for now. You can change these numbers anytime to see how they affect the outcomes.

Matching a commission model to your goals

Many sellers don't even know that there are multiple possible commission structures, but they should! Each one creates different incentives for your listing agent, leading to different outcomes for you. Some agents and brokerages may be willing to negotiate their rates or offer alternative pricing models ‐ either way, you can always find one that will run things the way you want.This can even be a good way to help you choose your listing agent.

Let's explore each structure to see how they work and what they mean for you.

1: Fixed Percentage Commission

This is the most common commission structure. The listing brokerage receives a fixed percentage of final sales price of the home.

A typical full-service rate might be

while a discount rate can be more like

Agent incentives:

Incentive to sell relatively quickly, with minimal effort: Most of the commission is earned just by making any sale!
Limited motivation for higher prices: Only small additional rewards for more effort

Best for:

UNCLEAR!
If you want to sell fast with low overhead AND you aren't too worried about the sales price, it's possible that a low discount rate will work, but see also the Fixed Fee option.
If you would like to maximize your income, see the Progressive Commission option.

Fixed Percentage Outcomes

Sale Price	Standard (2.5%)		Discount (1.0%)
	Commission	Net to Seller*	Commission	Net to Seller*

* Net to Seller is the amount after deducting both Listing Brokerage commission and Buyer Brokerage commission (2.5%)

💡 Key Insight

Notice how 33% of the top commission in your range is earned just by selling at your easy-sale price, and 50% is earned by the midpoint of your range. This shows why agents have a large incentive to make sure a sale occurs and little incentive to push for higher prices.

2: Fixed Fee Commission

Instead of a percentage, the listing brokerage receives the same dollar amount regardless of the sale price.

Fixed Listing Fee

Same fee regardless of sale price

Agent incentives:

Maximum incentive to sell quickly: Listing brokerage gets full payment for any sale
No financial incentive for higher prices: Extra effort doesn't increase commission

Best for:

Those who just need to sell fast — optimizing the price isn't the main priority
Those who don't believe that listing agents can do much to get you a higher sale price anyway

Fixed Fee Outcomes

Sale Price	Fixed Fee	Net to Seller*	Effective Rate

* Net to Seller is the amount after deducting both Listing Brokerage commission and Buyer Brokerage commission (2.5%)

💡 Key Insight

The listing brokerage gets the maximum commission for any sale price you accept. All good though: that's what this model is for.

3: Progressive Commission

Starts at a low percentage and increases progressively as the sale price increases. This makes the listing brokerage compensation lower at the bottom of your range and potentially higher at the top end, in comparison to fixed percentage models.

For example, the commission might start at

of the first $800,000 and increase by

within each additional $100,000 increment.

Agent incentives:

Minimal reward for quick/low sales: Agent earns very little for settling
Strong incentive for higher prices: Commission grows significantly with better outcomes
Encourages maximum effort: Agent has financial motivation to invest time and marketing
Aligns interests: What's good for you (higher price) is good for the agent

Best for:

Those who want to maximize their sale price
Those who believe that agent skill, experience, effort and marketing can make a meaningful difference
Those who want their agent's interests to be very aligned with their own

Progressive Commission Outcomes

Sale Price	Progressive Commission	Net to Seller*	Effective Rate

* Net to Seller is the amount after deducting both Listing Brokerage commission and Buyer Brokerage commission (2.5%)

💡 Key Insight

Notice how only 8% of the top commission in your range is earned at your easy-sale price, and just 25% by the midpoint of your range. This creates strong incentives for agents to push for higher prices.

Comparing Outcomes Across Models

Sale Price	Discount		Standard		Progressive
Sale Price	Commission	Net to Seller*	Commission	Net to Seller*	Commission	Net to Seller*

* Net to Seller is the amount after deducting both Listing Brokerage commission and Buyer Brokerage commission (2.5%)

Matching a commission model to your goals

1: Fixed Percentage Commission

Agent incentives:

Best for:

Fixed Percentage Outcomes

2: Fixed Fee Commission

Agent incentives:

Best for:

Fixed Fee Outcomes

3: Progressive Commission

Agent incentives:

Best for:

Progressive Commission Outcomes

Comparing Outcomes Across Models

Listing Agreement Commission Clause