Would you Give Anyone $15,000 for no Reason?

The average homeowner moves every 7-9 years. Every homeowner has a handful of agent friends and family members in their sphere of influence - siblings, in-laws, cousins, neighbors, or even a parent from your kid's soccer team. Each is hoping to be at the top of the list when it comes time for you to sell again.

The National Association of Realtors "2024 Profile of Home Buyers and Sellers" stated that "Sixty-six percent of recent sellers used an agent that was referred to them or used an agent they had worked with in the past to buy or sell a home."

It's natural to want to work with someone you know and it makes you feel good to give business to those closest to you. If your niece is selling Girl Scout cookies, you want to support her and buy a box of cookies. But is this the right line of thinking when it comes to selling your house?

The cost of selling a home with a real estate agent tied to the outdated traditional agent model often ranges from $10,000 to $30,000, depending on the value of your home. You typically wouldn't cut a $15,000 check to a neighbor, friend, or even a sibling unless there was a darn good reason. With the options available today, no one should feel obligated to unnecessarily give away $15,000 to sell a home. Those closest to you should be looking out for your best interest, not making you feel guilty so they can pad their own pockets at your expense.

It simply doesn't make sense to unnecessarily overpay thousands of dollars for a business transaction just because a family member, friend, or acquaintance chooses to be associated with an outdated and overpriced system. It's natural to want to support your family and friends, but the truth is that only a percentage of that hefty commission is going to them anyway. A good portion of the commission flows through your friend or family member and straight to their broker. You should tell your friend or family member that you would love to support them, but it simply doesn’t make financial sense to unnecessarily give away thousands of dollars to an outdated business model when that money is needed for your own family.