Cheap commissions for selling Santa Clarita Homes and what to watch out for
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Cheap commissions for selling Santa Clarita Homes and what to watch out for
Connor “with Honor” MacIvor - January 25, 2025** Tags: [Santa Clarita real estate](/-/Blog/tag/Santa Clarita real estate), [real estate commissions](/-/Blog/tag/real estate commissions), [first responder realtor](/-/Blog/tag/first responder realtor), [real estate agent](/-/Blog/tag/real estate agent), [real estate guide](/-/Blog/tag/real estate guide), [buyers agent](/-/Blog/tag/buyers agent), [sellers agent](/-/Blog/tag/sellers agent), [real estate negotiation](/-/Blog/tag/real estate negotiation), [Santa Clarita homes](/-/Blog/tag/Santa Clarita homes), [Connor with Honor](/-/Blog/tag/Connor with Honor) ** 0 Comments | Add Comment
Table of Contents
(Note: Internal anchor links throughout for easy navigation. Word count significantly exceeds 4,500 to ensure thoroughness.)
1. The Traditional Commission Structure
For decades, the “typical” commission on a real estate transaction in many U.S. markets was often quoted as 6% total—broken down (in theory) as:
But let’s talk reality: commissions have always been negotiable. While tradition might cling to that 6% figure, the truth is that no law or code enforces it. Some agencies might quote 5%, others 4.5%, some 7%—it’s a market phenomenon influenced by local competition, the property’s price, and (often) what sellers have come to expect over the years.
How Did 6% Become the ‘Standard’?
If you dig into real estate’s past, you’ll find that many brokerages used 6% as a comfortable number that allowed for an even split between the two “sides.” This easy math also matched older commission structures, where national brokerages standardized their fees. However, as technology, consumer awareness, and competition advanced, the old standard has grown fluid. In Santa Clarita, for instance, we might see commission splits that range from 4% total up to 7% or more—always subject to negotiation.
2. What Is a Fair Commission—and Are They Truly ‘Typical’?
A “fair” commission is one that reflects the value your agent provides. If the agent invests in:
…then perhaps paying a certain total commission might be worth it, especially if the resulting final price is thousands of dollars higher than it would have been with a weaker marketing plan.
However, if your agent plops a sign on the lawn, posts on the MLS, and then disappears like a desert mirage, paying a high commission is questionable.
In Santa Clarita, the range commonly hovers between 4% and 6% total, with the listing agent deciding how much of that to offer (through the MLS) to the buyer’s agent. It might be 2% or 2.5%, or sometimes 3%. As the seller, you have a voice in these decisions. Don’t let an agent bully you by saying “This is how it’s always been.” Remember: Commissions are negotiable—always.
3. Commission Negotiations: Understanding Both Sides
Negotiating your agent’s commission calls for a collaborative dialogue. This is your hard-earned money—and it’s crucial you see a return on investment (ROI) for every fraction of a percent you pay.
Why Sellers Might Want to Offer a Strong Buyer’s Side Commission
Even if you negotiate a lower overall commission, consider how a strong offering to the buyer’s agent can:
Conversely, offering a meager commission might reduce interest from buyer’s agents. Like all professionals, agents work for compensation, so if the competitor property next door offers a 2.5% commission while you only offer 1.5%, guess which property might get more agent attention?
(But again—Connor with Honor is telling you the unvarnished truth, not trying to manipulate. My job is to serve you, not to nudge you into a commission that lines my own pockets. We’ll always discuss the best strategy for your goals—ethically and transparently.)
4. Why Real Estate Agents Charge Commissions
Some folks wonder, “Why should I pay thousands just to sell my house?” or “What is this agent really doing that’s worth so much money?” Let’s break it down into understandable segments:
Why Does This Matter?
As a home seller, you want a champion who invests in your success. If you’re paying a higher commission, ask, “What are you doing for me that I can’t get from another agent at a lower rate?” For instance, do they have:
(For more insights into the Santa Clarita real estate process, check out my Real Estate Glossary for definitions of many terms. Knowledge is power, dear friend, and I love to help you decode real estate lingo!)
5. Predatory Agents vs. Protective Agents—Your Knight on the Field
The real estate industry, like any profession, hosts a wide spectrum of personalities. There are:
I’m a first responder who spent years wearing a badge—standing up for those in need, navigating life-and-death circumstances. That discipline taught me the importance of honor. Real estate is far less dangerous physically, but financially, it can be a warzone of shady deals and unmet promises.
Protecting Homebuyers and Sellers in Santa Clarita
Santa Clarita is a prime real estate market. But high demand can bring out questionable characters. When unscrupulous agents sense you’re new to the process, they might:
Don’t be fooled. A protective agent (like the fatherly, watchful voice I strive to be) will always keep your best interests at the forefront.
6. Evaluating a Real Estate Agent’s Prowess
A strong real estate agent in Santa Clarita or beyond should be able to articulate how they:
Ask for examples of situations where the agent overcame obstacles. For instance, maybe they faced a complicated multiple-offer scenario and soared above the competition, netting a higher price for the seller. Or perhaps they saved a deal from the brink of collapse by skillfully navigating repairs and contingencies.
(Want to see how past clients have appreciated my approach? Take a peek at our Testimonials. Those stories speak volumes about the real, tangible experiences of those I’ve served.)
7. Interviewing Agents: The Questions That Reveal Character
When you’re interviewing a potential agent—whether buying or selling—don’t hold back. You’re making what could be the largest transaction of your life. Here are some potent questions:
(Still shopping for the right agent? Try out our About page to see what we’re all about here at SantaClaritaOpenHouses.com. Learn who I am—and what I stand for—in more detail.)
8. Buyers’ Representation: The Commission Question
If you’re a buyer, you might assume you don’t have to worry about paying the agent. After all, many real estate deals appear to make the seller pay the buyer’s agent. However, times are changing. Some markets push for “buyer-broker agreements,” effectively stating that if the seller doesn’t pay your agent the full negotiated rate, you might be on the hook for the difference. In other words, if your buyer-broker agreement says your agent’s compensation is 3% but the listing is only offering 2.5%, you’ll owe the extra 0.5%.
Does This Mean You’re Actually Paying Commission as a Buyer?
Potentially, yes. Let’s say you buy a $600,000 home, but the listing only offers 2.5%. If your contract states your buyer’s agent must be paid 3%, that’s a difference of $3,000. If not covered in negotiations with the seller, you might pay it at closing.
(For more on the evolving mortgage rates that might impact your monthly budget, check out Mortgage Rates. Understanding the big picture of your finances and how commission might come into play is crucial before you sign on the dotted line.)
9. Seller Perspectives: Are You Paying Too Much?
Sellers: Did you know you have a legal right to negotiate every aspect of that listing contract, including commission? No agent can mandate a non-negotiable figure. If they do, they’re going against antitrust laws.
That said, you’ll want to weigh the agent’s experience and marketing budget. An agent might say, “I charge 6% total, but here’s the multi-pronged approach I’ll use to expose your home to the maximum number of potential buyers. Additionally, I handle professional staging, photography, and targeted online marketing.” If that plan might net you $30,000 more in the sale, you might say, “Sign me up!”
On the other hand, if the agent in question is simply recycling the same old “MLS plus yard sign” technique, paying a standard or high commission might be akin to burning money. And if an agent tries to shame you for questioning them, that’s a red flag.
(Curious about local market values? Head over to our Free Market Analysis page. Because knowledge is your shield, dear friend—never walk into a battle unprepared.)
10. Transparency in Real Estate: Buyer-Broker Agreements and Beyond
One major shift in the real estate industry is the increased push for transparency. Regulators, associations, and consumer advocacy groups have demanded more clarity around how commissions work. This has led to the popularity of Buyer-Broker Agreements:
Before you sign, ensure the agreement includes a clause about cancellation if the agent doesn’t deliver on promises. This is your escape hatch to avoid being bound to an ineffective or unethical realtor.
(For more on the intricacies of real estate terms, you might find our local Real Estate Glossary helpful. And if you’re relocating into the Santa Clarita area, check our Relocation page for tips on making a smooth transition.)
11. Behind the Scenes: Where Does Your Commission Dollar Go?
It’s easy to see commissions as a big chunk of change that vanishes into the agent’s pocket. But the breakdown might look like this:
After paying these bills, what remains is the agent’s net. For top-producing agents, that net can be very healthy. For less active agents, it can be shockingly small.
12. Connor with Honor: First Responder Realtor on Duty
I’m Connor with Honor, your local Santa Clarita real estate specialist and ex-first responder. My creed is:
I’ve dedicated my life to protect and serve—first in uniform, now on the real estate battlefield. I approach real estate with the same vigilance I had on the streets. When you walk into this potentially stressful process, I see it as my duty to shield you from unscrupulous tactics, hidden fees, and predatory practices. My vow? Keep you safe—financially, mentally, and emotionally—so you can realize your real estate goals without regrets.
(Have questions or want to chat with me directly? Visit our Contact page. I’d love to guide you, fatherly-sarcasm style, toward clarity and success!)
13. Avoiding Common Pitfalls (and Predatory Tactics)
Pitfall #1: Signing a listing agreement that locks you in for six months without any performance guarantee.
Pitfall #2: Accepting an agent’s marketing plan at face value—ask for specifics!
Pitfall #3: Not clarifying how dual agency works. If your listing agent also represents the buyer, is that in your best interest? Possibly—but get clarity on how they plan to remain neutral.
Pitfall #4: Letting an agent “overprice” your home to make you feel good, only to push you for painful price reductions week after week.
In each scenario, the solution is the same: Be informed. Ask questions. Insist on accountability. If an agent balks, that’s your sign to run.
14. Negotiating Tactics to Maximize Savings
When you’re on the selling side and thinking, “I want to pay less in commission,” consider the following negotiation tips:
Remember: You want to remain fair, too. Agents do a lot of work behind the scenes, and you want them motivated to represent your property with vigor.
15. The Shift in Modern Real Estate: From 3% Each Side to…?
We’re in the middle of a tectonic shift in how commissions are structured. Recent class-action lawsuits and changes in multiple listing services (MLS) policies have begun clarifying that buyers can, and sometimes should, negotiate how buyer’s agents are paid. Some brokerages even pivot to flat-fee or hourly models.
What might this look like in the near future?
Is that necessarily better or worse? It depends on you. Some folks prefer an all-inclusive approach, while others like paying only for the specific services they need.
16. How to Research Agents’ Track Records
Here’s a fatherly tip: Always research. Type an agent’s name into Google. Check their reviews on Zillow (though be cautious—some unscrupulous folks might “game” the system). See if they have real reviews on Yelp or Google My Business. Also check local Santa Clarita community forums or Facebook groups. Additionally, ask them to provide a list of recent transactions. If they’re proud of their success, they’ll happily share.
(I keep a robust section of success stories on My Sold Listings. Transparency is key; seeing what’s been done in the past can help you gauge how an agent might serve you in the future.)
17. The SantaClaritaOpenHouses.com Edge
Why do I emphasize SantaClaritaOpenHouses.com in the midst of discussing commissions? Because having a centralized, local website can provide an immense advantage. When you list your home with me, it’ll gain prime placement on a site specifically designed to capture leads and traffic from serious Santa Clarita buyers. And guess what?
SEO is all about building trust and giving potential buyers an easy, straightforward search platform that isn’t riddled with hidden ads or inaccurate listings. That’s exactly what you’ll find.
18. SEO Boost: Linking to Valuable Resources on SantaClaritaOpenHouses.com
In an effort to make your life easier—and to show you exactly how I back up what I say—here are some specific links that might help you navigate:
By exploring those pages, you’ll see exactly how local real estate data is curated—honestly and in real-time.
19. Community-Focused: Santa Clarita, Canyon Country, Valencia, and More
Serving Santa Clarita means understanding each community’s heartbeat. Canyon Country has a different vibe than Valencia, which differs still from Newhall, Saugus, Stevenson Ranch, or outlying areas like Acton and Agua Dulce. The commission you negotiate might reflect the local norms or the property’s unique value proposition.
Example: If you’re selling a horse property in Acton (see Horse Properties in Santa Clarita Valley), that requires specialized marketing to a more niche audience. A strong listing agent who invests time, money, and knowledge in effectively marketing that type of property is invaluable.
(Community is everything. I see it as my duty to keep the neighborhoods informed and safe. If you want to know about open houses in your community, check out Santa Clarita Open Houses Today.)
20. Building a Long-Term Relationship with Your Realtor
The best agent-client relationships often extend beyond the transaction. My clients call me months later asking for:
I welcome it! That’s part of the fatherly role I enjoy. If you only hear from your agent when they’re angling for a new listing or searching for a new buyer, that’s a sign they see you as a transaction, not a relationship. We all know relationships flourish with constant communication and mutual respect.
21. The Future of Real Estate Commissions
As the industry continues to evolve, more platforms and consumer advocacy groups push for a clearer, more transparent breakdown of commissions. In some areas:
We’re also seeing the rise of discount brokerages, but with “discount” can come discounted (read: minimal) service. If you go the discount route, just confirm you know exactly what you’re getting. Sometimes, the cheaper route ends up being the costliest if your property sells for far less than it could have, or if you fail to snag your dream home because your discount agent wasn’t fully engaged.
I believe in a model that merges:
22. Final Thoughts & Key Takeaways
We’ve covered a sprawling range of topics, from the old 3% + 3% model to the intricacies of modern buyer-broker agreements and the shifting tides of real estate commissions. As your protective knight in shining armor, I want to ensure you enter this domain armed with knowledge and supported by a sincere advocate who cares about your outcome.
Here are the critical points to remember:
(If you want to see what’s happening in the market right now, check out the Blog on SantaClaritaOpenHouses.com. I regularly update it with data-driven insights, giving you an edge on the competition.)
A Heartfelt Closing Note
Real estate is not merely about property; it’s about your life—where you grow, invest, and create memories. As a father who’s traveled the globe and seen how people live (and sometimes struggle) in countless circumstances, I understand how crucial it is to get it right when buying or selling your home. This is your safe haven, your castle. You deserve an honest advisor—someone who’s quick-witted but wise, protective, and patient.
That’s the role I strive to fill. I wear the armor of your trust, wield the sword of integrity, and ride the steed of experience. If you ever feel lost, or if some unscrupulous agent tries to lead you astray, you can always reach out to me. We’ll have a fatherly talk, clarify your objectives, and ensure you’re on the right path.
Until then, friend, keep your spirit light and your mind sharp. With the knowledge from this guide, you’re well on your way to forging a successful real estate path—one free from hidden agendas and dark corners.
Stay safe, stay informed, and remember:
You are in control of your real estate destiny.
I’m simply here to shine a light and protect you from the dragons lurking in the shadows.
Additional Insights: SEO, Ethics, and the Santa Clarita Market
Why so many references to the local area and internal links? Because we want to:
Ethical real estate is about shining a light on everything, from how commissions are structured to how you can exit a contract if you’re unhappy. If your agent is doing things right, they have nothing to hide. They’ll emphasize clarity at every step.
When searching for a home—be it in Newhall, Valencia, or Saugus—a local website like SantaClaritaOpenHouses.com is your friend. We maintain up-to-date listings, detailed property info, hyperlocal tips, market reports (e.g., Canyon Country Market Report, Valencia Market Report, and so forth), giving you an advantage you might not get using a broader portal that lumps Santa Clarita in with the rest of Los Angeles County.
The Fatherly Sarcasm and Wisdom
You know that fatherly stance: “I wouldn’t let you run into traffic without telling you cars exist, would I?” In real estate, I don’t want you stepping into the “busy street” of real estate deals without seeing the “speeding cars” of unscrupulous practice. My fatherly sarcasm might come out like: “Of course, if you love setting your wallet on fire, you can sign a 7% commission with the next agent you meet at Starbucks who promises the world but disappears on inspection day.” But you won’t do that. Because I’m here to guide you and you’re too smart to get swindled.
Patience is key. Just like being a father taught me to hold a child’s bike seat while they find their balance, I’ll hold your hand through the complicated parts of buying or selling. And yes, once you find that balance, you might coast along without me—but I’ll always be a phone call away if you hit a bumpy patch.
A Note on Memorization, Digestion, and Comprehension
Real estate commissions can feel complicated—like reading a foreign dictionary. Here’s how to memorize, digest, and comprehend:
(Pro tip: This method helped me when I studied for real estate exams and hostage negotiator courses. Repetition plus real-world scenarios = mastery.)
The NOW Mindset
A final fatherly push: Don’t procrastinate. Whether you’re about to list or buy tomorrow, next month, or even next year, start preparing now. Real estate markets shift with economic changes, interest rate fluctuations, and local developments. Having a firm grasp of commission structures and agent responsibilities isn’t just beneficial, it’s crucial. If you wait until you’re signing a listing agreement, the pressure might lead you to a suboptimal decision.
Right now is the best time to:
Concluding With Honor
Honor is the cornerstone of everything I do. I wore it on my badge as a police officer, and I wear it now on my real estate name badge. I’m passionate about Santa Clarita because it’s a community I deeply care for—a place where families thrive, businesses flourish, and we watch out for each other. My mission is to ensure everyone I serve in real estate is thoroughly protected, consistently informed, and supremely satisfied.
Remember, you wield the power in your real estate transactions. Your agent—Connor with Honor, or whomever you choose—serves you. If they forget that, gently remind them or find someone else. This might be a once-in-a-lifetime move for you, so it deserves the utmost care and respect.
May your real estate endeavors be guided by clarity, empowered by knowledge, and sealed with success. If you ever need me, your fatherly ex-cop-turned-realtor, I’m just a click or call away.
(Ready to chat directly? Head over to my Contact page or explore the rest of SantaClaritaOpenHouses.com for more resources. Let’s get started on saving the world—one honest real estate dealing at a time.)
Stay safe, stay informed, and keep that honor shining bright!
—
Connor with Honor
Your First Responder Realtor in Santa Clarita
“Saving the world, one honest real estate deal at a time.”
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Yes, I earn referral fees when you work with agents I recommend. But unlike national platforms like Zillow or Realtor.com, I personally know and vet every single agent in my network of 17 trusted professionals.
My recommendations are based on YOUR specific needs and the complexity of your situation—not who pays the highest referral fee. I live in Santa Clarita Valley, and my reputation in this community depends on your success. Local accountability matters.
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