3% Total Commission; What’s the Catch?

Commission Savings Chart


Sale Price 6.00% 5.50% 3.00%
$250,000 $15,000 $13,750 $7,500
$300,000 $18,000 $16,500 $9,000
$350,000 $21,000 $19,250 $10,500
$400,000 $24,000 $22,000 $12,000
Too Much Ouch Just Right

There is no catch. The 3% Real E$tate concept grew from our frustration over two aspects of our industry.

1. The first was how home sellers chose listing agents. The process seemed so arbitrary. Many sellers simply “gave” their listing to a friend or family member in the business.  They got nothing in return and rationalized their “gift” like this:

“All agents charge the same 6% commission right?  I might as well give the listing to my niece Mary since she has her license.”

Listing agents like Mary often picked up business without having to compete.  After all, with nearly 200,000 licensed agents in the state of Florida, everybody knows a Realtor.  Unfortunately, the Seller often looses in this arrangement.  We established 3% Real E$tate to provide Sellers a real alternative to simply giving their home listing to their niece, Mary.

2. We also identified the pricing structure of the industry itself as a problem. The listing side of the Real Estate transaction involves less work hours than buying side, yet in most cases both services are compensated at the same rate. The standard 6% commission on a $300,000 home is $18,000, $9,000 for the listing agent and $9,000 for the buyer agent (Easy money, part-time hours. No wonder there are so many Realtors, right?).

Our firm had been part of this antiquated system for more than 20 years when we decided to disrupt the status quo. We built a business model from the ground up based on pricing that is about 50% of the industry standard = 3% commission. 

Using our 3% model, that same $3oo,ooo home sale costs the seller a total of $9,495. That fee provides a 2% commission for the buyer agent to bring in potential sales.  Our fee is 1% + $495. Sellers receive exactly the same service at almost half the cost. That’s because we’re a modern brokerage with a modern pricing structure.

The service is the same, only the pricing is different. Mary the niece is out of luck if we can save the seller nearly $9,000 over her “standard” rate.

How’s that possible? Technology. Selling houses is more efficient today than ever before thanks to cell phones, electronic signature capabilities, and Real Estate software. Agents can facilitate transactions in just a few clicks from anywhere, at any time. What once took weeks now takes seconds. We lowered our costs because real estate deals require less time consumption, especially from the listing side,  in the 21st Century.

At 3% Real E$tate, we know home sellers are paying more than they would under a more competitive system. That’s why we’re competing. The internet has drastically changed our economy, and it’s time the Real Estate industry caught up. We have

  – Ray Guenther, Broker

3% Real E$tate is a full service Brokerage, a member of Orlando Association of Realtors as well as the Osceola Association of Realtors.  We are members of the MLS and the Kissimmee Downtown Business Association.  I have been a licensed Realtor since 1997 and a licensed Broker since 2001.  License #BK657563

We work professionally and efficiently.  We don’t “use” our friendships and relationships to extract business.  On the contrary, our mission is to use our skills and expertise to create and strengthen relationships.  If you you are looking to sell or purchase Real Estate and gain some equity in the process, contact 3% Real E$tate. 

Text: 321-624-0534   Call: 407-479-0076

Email: info@3percentsales.com