Is The Prevailing Compensation Model Outdated?

The median home price in Chittenden County Vermont is roughly $262,000. Under the prevailing compensation model in Chittenden County, real estate firms charge 6% to represent a seller and 3% to represent a buyer in Chittenden County.

Assume that an agent completes 12 transactions in a year or 1 per month. At the median sales price above that agent would have sold $3,144,000 of real estate throughout the year. Assume that 1/2 of the transactions were at the rate of 6% and the other 1/2 were completed at the 3% rate. The total fees collected by that agent during the year would be $141,480.

Assume that the agent retains 70% of the fees and the other 30% goes towards overhead, costs and expenses. The agent would collect $99,036 for the year.

$99,036 and only completing 1 transaction per month? Assume that a transaction took 40 hours of the agent's time (which based upon my experience as a real estate agent, real estate lawyer, buyer and seller is on the extremely high side), the agent could essentially make $100,000 working 1 week per month.

With all of the advancements in technology and agent efficiency, don't you think that the prevailing model is outdated?

For a more equitable model check out our buyer agent services where we rebate our fees to our clients.


  1. Adriana on

    Before you make an offer you should check with a Realtor in and aronud that location to obtain a comparative sales analysis for similar homes in that neighborhood then once you are armed with this information you can make offers 10 to 15 percent below without fear of insulting the seller References : Was this answer helpful?
    • Nicki on

      Hi. I realise the new House Price Search Tool is still in beta guise but why are so many preiortpes not listed? I have been searching for preiortpes that I know have been bought and sold with varying success. I have found complete roads that do not show up no matter how the address is entered. Then there are preiortpes that show only one sale but I know have been sold a couple of times since. I would have imagined that the land registry office being a strictly run government organisation would have its records absolutely spot on, allowing only the ommission of recent sales but this does not seem to be the case. Could you explain please why so many sales of preiortpes and their prices are not showing up in your data base? Thank you. LPH.

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                Buyers Get a Competitive Edge With Flat Fee

                Because Flat fee shares its commission with its buyer clients, our buyers have a competitive edge when bidding on houses. Here is an example:

                A home is listed by a firm and the seller is offering buyer agents a 3% commission. The home is listed for $350,000.

                A buyer with an agent that does not share their commission offers $325,000 for the home.

                A buyer client of Flat Fee offers $330,000 for the same home.

                In almost every case, the seller is going to accept the higher offer of $330,000.

                At closing Flat Fee receives a commission check for $9,900. Flat Fee keeps $3,500 and gives the rest, $6,400, to our client.

                Thus, even though our client offered $5,000 more for the house, they actually paid $1,400 less than the other buyer was offering for the house.

                As you can see buyers gain a competitive edge by using Flat Fee.


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