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The Commission Dilemma: 4 Core Problems that Got Us Here


If you’re following the real estate industry at all, you know that it’s in some pretty hot water. Dozens of lawsuits have been filed against industry participants, going after practices that stifle a fair and more competitive free market. Last year, defendants including the National Association of REALTORS®, Keller Williams, RE/MAX, and more lost a class action lawsuit and were ordered to pay trebled damages of more than $5.36 Billion. And more lawsuits are popping up, what seems like, everyday. 

To add to that, the U.S. Department of Justice is taking aim at the industry and suggested some major changes in a recent opinion – changes that would turn the real estate industry on its head. The industry is at a crossroads that we’ve never seen before. 

Much of the industry is up in arms and fighting simply to defend their paycheck. But maybe we should really be asking ourselves how we can maintain the integrity of our industry. Here are 4 core problems I think we have to address.  



I won’t say their names but you know who they are. They’re the offices with hundreds or thousands of agents. The profit model of mega brokerages relies on a high agent headcount, and they have every incentive to recruit as many agents as possible. The model is obviously profitable, but the problem comes when they prioritize a culture of agent recruitment over client satisfaction. 

I think the ultimate goal of a brokerage should be to facilitate successful transactions. Their central focus should be the client experience. Instead, mega brokerages tend to zero in on the agent experience. Instead of asking, “How can we appeal to more agents?”, mega brokerages should ask, “How can we do a better job for our clients?”. 



With a brokerage that has so many agents comes the significant problem of providing oversight. For example, a brokerage in Texas with more than 8,200 agents and only 16 brokers. How can one individual broker offer attention and guidance to over 500 agents under their purview? With so many agents to manage, they typically resort to standardized and generic training materials that fail to address unique needs and challenges faced by agents. 

Without personalized oversight and support, many agents have gone rogue. Agents at these big brokerages may be more prone to make costly mistakes for their clients or even engage in unethical practices. It’s this kind of massive problem that can tarnish the reputation of the real estate industry as a whole, and undermine consumer trust. 



The barrier of entry to become a licensed real estate agent is low. In Texas, 1,000 hours of instruction are required to become a cosmetologist, 600 hours to become a manicurist, and 320 hours to do eyelash extensions. But to assist clients with what is often the largest investment of their lives? Only 180 hours. 

Such a low threshold for entry fails to prepare agents for the intricacies of the real estate market, and potentially puts consumers at risk. Real estate transactions involve huge financial investments and legal considerations. When agents don’t receive proper education and training, it leads to dissatisfaction and mistrust with consumers. We need to raise the bar to elevate the standards of the entire industry.



In 2023, the number of existing U.S. home sales was right at about 4 million. There were about 1.5 million REALTORS®. The industry is oversaturated with agents. Also in 2023, 50% of agents closed zero or only one deal. You have to close deals to gain experience and provide exceptional service to clients.  

When inexperienced agents handle transactions, they may overlook crucial details, mishandle negotiations, or fail to provide adequate guidance to their clients. To uphold standards of excellence and protect consumer interests, addressing the issue of oversaturation and promoting more rigorous standards for agent qualification and ongoing professional development is imperative.


The real estate industry finds itself at a pivotal moment. The recent wave of lawsuits underscore the urgency of addressing the core problems plaguing our profession. It is only through a dedication to serving the best interests of our clients that we can forge a path forward. 



You’ve worked hard to build equity in your home, and we aim to help you keep it. That’s why we’ll build a custom listing package to provide you with the best service, AND help you save money compared to typical real estate commissions. Our sellers have saved over $1.5 million in commissions.

We provide elevated service at a lower price. We do this because we want you to be so pleased with our services that you’ll choose to hire us every time you buy or sell.

Want to find out how much you can save? Give us a call or simply send us an email at [email protected].

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