In the world of real estate, sellers often find themselves grappling with a choice—whether to hire an experienced, full-service agent who charges a standard fee or to opt for a solo or junior agent who promises to save them money on commission. While it may seem tempting to cut costs and go for the lower fee, this decision can often backfire in a significant way. Sellers may save a bit upfront, but in the end, they risk losing far more through underselling their property, often to the tune of thousands, even tens of thousands, of dollars.

So, why do sellers still make this choice? It’s a mystery that’s been debated in real estate circles for years, yet the answer lies in a combination of misconceptions, marketing tactics, and a lack of understanding of the real impact on the final sale figure. Here, we’ll dive into the reasons behind this puzzling decision and explore how sellers often end up losing heaps to save on “selling fees.”

The Lure of Low Fees

At first glance, the idea of paying a lower fee to sell your home seems like a win-win. After all, why pay a higher commission rate when you can find an agent willing to take less? Solo agents, junior agents, and discount operators often market themselves as cost-saving alternatives to traditional real estate agents. They promise to get your property on the market quickly and cheaply, with low commissions that can seem like a breath of fresh air in the often expensive process of selling a home.

However, this lure of saving on commissions can mask the true cost of hiring a less experienced or less equipped agent. The danger is that while sellers may save few % points in commission fees, they end up losing far more by selling their property for less than it’s truly worth.

The Expertise Gap

One of the key factors sellers overlook when choosing a solo or junior agent is the gap in expertise. Real estate isn’t just about listing a property online and waiting for buyers to roll in—it’s about positioning the property correctly, understanding market dynamics, and negotiating for the best possible price. This level of expertise comes with years of experience, solid market knowledge, and access to resources that many solo or junior agents simply don’t have.

Negotiating is one of the most critical aspects of a sale. A top-tier agent understands how to create competition, read buyer signals, and leverage every advantage to secure the highest price for a property. A less experienced agent may be quick to close a deal, but in doing so, they often leave money on the table. The difference in negotiation skills alone can result in a sale price significantly lower than what an experienced agent could have achieved.

Even within the same real estate company, there can be a wide disparity in skills and efficiency. Some agents may have access to the same tools and resources, but not everyone knows how to use these tools in the most efficient and effective way. What separates a top agent from a junior or solo agent isn’t just the access to these resources, but the experience and expertise in applying them to their fullest potential. That can be the difference between a good sale and an exceptional sale.

The Marketing Muscle Matters

The process of selling a home involves more than just taking a few photos and listing it online. Effective marketing is an art that requires the right tools, platforms, and strategies. A junior or solo agent might not have access to the same marketing resources as a larger agency or a senior agent with years of experience. Without these resources, your property might not get the exposure it needs to attract competitive offers.

Larger agencies often have established marketing plans, partnerships with third-party services, and access to premium platforms that ensure your property reaches the right audience. This includes everything from high-quality photography and staging to custom property video tours, targeted social media campaigns, and editorials in newspapers or online real estate portals.

While junior or solo agents may offer basic marketing at a lower fee, this often results in less visibility for your property. When fewer buyers see your property, the likelihood of creating a competitive bidding environment diminishes, which directly affects the final sale price. What starts as an effort to save on fees ends up costing the seller far more in lost potential.

The Danger of Quick Sales

Many solo or junior agents are motivated by volume—they need to close more deals to make up for their lower commission rates. As a result, they may push for a quick sale rather than taking the time to create the best possible conditions for a top-dollar offer. This can lead to properties being sold below market value simply because the agent is eager to move on to the next listing.

Experienced agents, on the other hand, understand that creating competition among buyers takes time and effort. They are willing to invest more in the marketing process and engage in multiple rounds of negotiations to ensure the seller gets the highest possible price. This approach not only maximizes the sale price but also leaves the seller with far more in their pocket, even after paying a higher commission.

The “Nice Agent” Factor

Another mystery that often leaves seasoned real estate professionals scratching their heads is the sellers’ rationale for choosing an agent based solely on personality. Time and again, you’ll hear sellers say, “I chose this agent because he/she seemed so nice.” While rapport and a good working relationship are important, they should never be the deciding factor in choosing an agent.

Being nice doesn’t guarantee results. You need a real estate agent who not only understands the market but is also a skilled negotiator and an expert at marketing your home to its fullest potential. Choosing an agent purely because they were personable during your initial meeting can be a costly mistake if that niceness doesn’t translate into competence. The goal is to sell your property for top dollar, and that requires more than just charm—it requires expertise and a strategic approach to every aspect of the sale.

The Numbers Don’t Lie

Let’s break it down with a simple example. Imagine you’re selling a property worth $800,000. You have two options: hire an experienced agent who charges a 2.5% commission or a junior agent who offers a 1.5% commission.

• Experienced Agent (2.5% commission): After thorough marketing and negotiation, the experienced agent sells the property for $850,000. The commission comes to $21,250, leaving you with $828,750.
• Junior Agent (1.5% commission): Without the same level of marketing or negotiation skills, the junior agent sells the property for $800,000. The commission is lower at $12,000, but you’re left with $788,000.

By choosing the junior agent to save on fees, you’ve ended up losing $40,750 in potential earnings from the sale. That’s a hefty price to pay for cutting commission costs. And this scenario doesn’t even factor in properties where the gap between the actual sale price and the potential sale price is even larger.

The Long-Term Impact

When sellers focus too much on saving on commission fees, they often lose sight of the bigger picture. The real goal should be to maximize the final sale price—not to simply cut costs in the process. Saving a few thousand dollars on commission is meaningless if it results in tens of thousands of dollars being left on the table in the final sale.

Moreover, the consequences of underselling can be long-lasting. If you plan to reinvest in another property, having less capital from the sale limits your options. Underselling can also affect your financial future, especially if you’re relying on the proceeds from the sale to fund retirement, pay off debts, or invest in other ventures.

Conclusion: The Real Cost of Underselling

The mystery of why sellers choose solo or junior agents to save on fees may never be fully solved. However, the reality is clear: while it may seem like a smart financial move upfront, the long-term cost can be devastating. Sellers who hire less experienced agents to save on commission fees often end up underselling their property and losing far more in the final sale than they ever saved on fees.

In real estate, as in life, you often get what you pay for. When it comes to selling your biggest asset, choosing the right agent can make all the difference in achieving a top-dollar sale—and that’s worth far more than saving a few percentage points on fees.