When you’re buying or selling a home, real estate commissions and fees can feel like a mystery. Many clients assume that agent fees are set in stone, but the reality is far more flexible—and sometimes agents may be charging more than their service is worth. Understanding how to evaluate an agent’s pricing structure can help you avoid being overcharged. Here’s how to know if your real estate agent is charging too much.
1. Understand the Standard Commission Rate
Why It Matters:
In most cases, the commission for real estate agents ranges between 5% and 6% of the home’s sale price, typically split between the buyer’s and seller’s agents.
Red Flag:
- An agent quoting significantly more than this range without explaining why.
- No written agreement detailing the commission rate.
2. Compare Multiple Agents
Why It Matters:
Different agents charge different rates based on experience, market, and services. Comparison helps determine if you’re getting fair value.
Red Flag:
- Your agent charges more than others in the area offering similar services.
- They discourage you from shopping around.
3. Look Out for Extra or Hidden Fees
Why It Matters:
Some agents may add charges for services that are typically included, like marketing or administrative work.
Red Flag:
- Vague language around “marketing packages” or “transaction coordination fees.”
- Charges that aren’t clearly listed in your agreement.
4. Evaluate the Value of Services Provided
Why It Matters:
A higher fee is justifiable if it’s matched by premium service and results—but not when service is subpar.
Red Flag:
- Lack of professional photography, home staging, or targeted advertising.
- Minimal communication or updates throughout the process.
5. Ask for a Fee Breakdown
Why It Matters:
Transparency is key. A reliable agent should be able to explain exactly what you’re paying for.
Red Flag:
- The agent avoids giving a detailed breakdown or becomes defensive when questioned.
- You’re unclear on what’s included in their service.
6. Watch for High Fees with Little Experience
Why It Matters:
New agents might overcharge in an attempt to appear premium, despite lacking the experience to justify it.
Red Flag:
- High commission paired with a short track record or few client reviews.
- No evidence of successfully closed deals in your area.
7. Read the Fine Print
Why It Matters:
Some contracts include clauses that bind you to an agent for long periods or make it difficult to cancel if you’re unsatisfied.
Red Flag:
- Long exclusive agreements without a clear opt-out.
- Penalties for ending the agreement early.
Final Thoughts
A trustworthy real estate agent will always be upfront about their fees and provide value that matches—or exceeds—their cost. If something feels off or overpriced, trust your instincts and ask questions.
At Townsend Realty Group, we believe in transparent pricing and delivering top-tier service that earns your trust and business. Contact us today to find out how we provide unmatched value without hidden costs.