There is no required commission rate
A seller and listing brokerage agree on the fee and services in the listing agreement. Michael offers eligible sellers full-service representation for a flat $4,995 instead of a percentage-based listing fee.
Listing-side and buyer-side costs differ
The listing fee pays the brokerage representing the seller. Any buyer-broker compensation is a separate decision. Other costs may include title work, taxes, repairs, concessions and closing charges.
Compare the service
Ask who handles pricing, photography, marketing, showings, negotiations, inspections, appraisal issues and closing coordination.
Compare 1%, 2% and 3% with a $4,995 listing fee
These hypothetical examples compare only the listing-side fee at the same sale price. They are not competing broker quotes, required rates or promises of savings. Service packages may differ.
| Sale price | 1% | 2% | 3% | Flat fee |
|---|---|---|---|---|
| $300,000 | $3,000 | $6,000 | $9,000 | $4,995 |
| $400,000 | $4,000 | $8,000 | $12,000 | $4,995 |
| $600,000 | $6,000 | $12,000 | $18,000 | $4,995 |
For example, at $400,000 a 1% listing fee is $995 lower than $4,995, while a 3% fee is $7,005 higher. Buyer-broker compensation and other transaction expenses are separate under either approach.
Where do the fees become equal?
Divide $4,995 by the comparison rate: the equal-fee sale price is $499,500 at 1%, $249,750 at 2%, and $166,500 at 3%. Below each threshold the example percentage costs less; above it the flat listing fee costs less.
Calculate a comparison using your price and percentage, then compare the services and terms in the actual written proposals.
How to compare two listing proposals
Ask each broker for a written list of included services, when the fee is due, any additional charges and what happens if the property does not close. Compare the same sale price and the same listing-side costs. Keep separately negotiated buyer-broker compensation out of a listing-fee-only comparison.
Can a percentage fee be lower?
Yes. The result depends on the price and the percentage. A hypothetical 1% listing fee equals $4,995 at $499,500; below that price it is lower, and above it it is higher. This arithmetic is not a quote from another brokerage and says nothing about the services or other charges in its agreement.
Our calculator lets you select a comparison percentage. Use an actual competing written quote when deciding which proposal fits your sale.