I was asked, “How can you explain that a realtor in Detroit gets paid 5% to sell a $12,000 dump, and you get paid the same 5% to sell an $800,000 house?”

I can explain it in one word.


You are offering a reward for an agent to bring you a top-dollar sale.

The commission dollars look ridiculous if you try to justify the pay as a regular hourly wage or salary job.

Consider it as offering an incentive.

If you offer $400, it won’t raise an eyebrow.  If you offer $4,000, a couple of agents might start looking around for their flip-flops.

But if you offer $40,000, every agent will drop everything, go pick up their buyer and coming running over – and that’s the type of response that causes a top-dollar sale.

Then I added, “Recently I sold a house for more than 10% over list price in a carefully-orchestrated bidding war – do you think I earned the 5%?”

I will pay for myself – promise!


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