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The Myth of 6%: Why It’s Time to Rethink Real Estate Commissions

Updated: Oct 4

selleio™ challenges the industry norms, in an effort to provide more value to the consumer



For decades, homeowners have been told that a 6% commission is the “standard” cost of selling a home.


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Ask around at an old-school real estate office and you’ll hear it said like it’s some kind of law of the universe—unchangeable, non-negotiable, the price you simply have to pay to sell your home is 6% of the purchase price. But today home Sellers are questioning this "old-school" mindset.

(especially since selleio sells 100% of their homes for 3.5%, or less!)



How 6% Became the Norm


In the 1970s and 80s, selling a home was a much more expensive process for agencies:

Print media ruled the day. If you wanted buyers, you had to buy full-page newspaper ads, glossy magazine spreads, and weekly real estate circulars. Those didn’t come cheap.

MLS access was literally on paper. Before digital databases, real estate boards printed massive MLS books that had to be updated and redistributed constantly. This was slow, manual, and expensive.

Marketing meant physical work. Flyers, postcards, yard signs, and film-based photography were all standard—and all came with costs that added up quickly.

Brokerages carried heavy overhead. Big brick-and-mortar offices, phone banks, administrative staff, and endless filing cabinets weren’t optional; they were the backbone of the business.


With all those expenses, a 6% commission seemed reasonable at the time. It helped cover advertising, operations, and the split between the listing agent and the buyer’s agent.


Why 6% Stuck Around


Here’s the kicker: once those costs disappeared, the 6% didn’t.


The internet changed everything. Digital MLS systems replaced paper books. Online listings replaced print ads. Professional photography became cheaper and faster. Buyers started doing their own home searches on their phones. Marketing shifted online, where targeted ads cost a fraction of what newspapers once charged.


But instead of lowering their rates, most old-school agencies kept the 6% intact. Why? Because it was profitable. The industry leaned on tradition, not transparency. Homeowners were still told “that’s just the standard” long after the standard had lost its justification.


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The Cost of Clinging to the Past


For the average homeowner, 6% means tens of thousands of dollars lost to outdated pricing. On a $400,000 home, that’s $24,000 gone. On an $800,000 home, it’s $48,000. Money that used to cover print ads and overhead is now just padding corporate profits. The "old-school" agencies are trying to grab all the profit they can, before the public catches on.


And here’s the part the industry doesn’t like to talk about: with today’s technology, selling your home well doesn’t require 6%—it requires expertise, strategy, and the right tools.


We've been operating a new, lean admin, tech-driven model all year, and we've sold ALL our properties at 3.5% or less, (never 6%), and are saving customers $10k, $20k, $30k, even $40,000 in fees. Does that sound at all interesting to anyone...?



That’s where Selleio comes in. Truly Real Estate, Done Better.


We built Selleio to disrupt the outdated 6% model. Instead of clinging to old costs, we use modern tools to deliver concierge-level service for half the price. Your home gets elite photography, expert negotiation, and white-glove transaction management—without the bloated commission.


The myth of 6% is just that—a myth. Technology made it unnecessary decades ago. At selleio, we believe it’s time for real estate to catch up.


Why pay for 1980s overhead in 2025? With Selleio, you don’t. Set up a zero-pressure,

zero-sales chat with us today here. We’ll tune in, learn all about you and your needs, and lay out exactly what selleio can do for you, what to expect, and how much it’ll cost — no surprises, just straight talk. After our call, we’ll send over some follow-up info. If you feel a fit, just tap the link we provide, and voilà! You’ll be instantly connected to your very own selleioEliteAgent™, ready to get the ball rolling!

 
 

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© 2025 selleio ventures llc. All Rights Reserved.

Michigan Licensed Brokerage #6505432809

211 W. Exchange St. #34, Spring Lake, MI 49456

1309 Coffeen Avenue, Suite 1200, Sheridan WY, 82801

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At selleio, we're all about playing fair—whether it's leveling the real estate playing field or championing equal opportunities. That's right, we're a proud Equal Opportunity Employer and a staunch supporter of the Fair Housing Act. Each of our locations is a dynamic partnership between selleio, llc and the crème de la crème of licensed brokers. And because the only constant is change, we reserve the right to mix things up without notice. We strive for accuracy in everything we present on this site, but hey, we're only human. While we believe our information is as sharp as our wit, we can't guarantee it's foolproof, so it's yours free of warranties. 

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* savings are calculated by subtracting selleio's fees from the long-standing industry standard of brokerages charging 6% in total agnecy comissions with 3% Seller Agency fees and 3% Buyer Agency fees, on the national average sale cost of a residential home. 

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