Understanding Real Estate Commissions: Who Really Pays for Your Agent?

Let's address a common misconception in real estate transactions. While it's often said that "the seller pays the agent commissions," the financial reality is more nuanced. Here's how it actually works:

1. When you purchase a home, the total sale price includes the seller's costs, including agent commissions (typically 5-6% of the sale price).

2. This commission is then split between the listing agent and buyer's agent. This is why you sign a “buyer’s agency agreement” promising you will let the real estate agent keep your money instead of getting a lower price or seller concession that would go to you.

3. In essence, the buyer ultimately funds both sides of the commission through the purchase price.

This structure creates some important implications:

• The commission is built into your purchase price

• Without buyer agent fees, this amount could potentially be negotiated as a price reduction

• You're effectively paying for representation whether you realize it or not

Traditional brokerage models often obscure this reality, presenting buyer representation as a "free" service. At Next-Nest, we believe in complete transparency about how real estate compensation works.

Why This Matters for Homebuyers

When you understand that you're effectively paying for representation, it changes how you should evaluate your options. You deserve:

• Clear communication about fees and services

• Professional representation that actively works in your best interest

• Services tailored to your specific needs in the buying process

Next-Nest's Service-Based Approach

We offer tiered service plans designed to match where you are in your homebuying journey:

Canary Plan: Transaction Management

Canary: For Buyers Who’ve Found Their Home & Just Need to Close Without Drama

(AKA: "I know what I want—now get me the keys without any surprises.")

✔ Contract Review & Negotiation – No fine-print traps.

✔ Appraisal & Inspection Backup – Because "surprise foundation issues" should stay in horror movies.

✔ Smooth Closing – We handle the chaos; you handle the celebratory champagne.

Robin: For Buyers Still Swiping Through Listings

(AKA: "I need help before I fall in love with a house that’s actually a money pit.")

✔ Personalized Home Search – No more Zillow rabbit holes.

✔ Market Strategy That Works – Data > guesswork.

For buyers who want professional assistance throughout their entire home search. This includes:

• Property search and evaluation

• Market analysis and pricing guidance

• Offer strategy and negotiation

• All Canary Plan services

Each plan is designed to provide transparent, value-driven service that aligns with your specific needs in the housing market.

Cardinal: For Buyers Who Need a Bit More than Robin

(AKA: I’ve submitted a few offers and am now ready to get aggressive.")

✔ More Tours, Faster Offers – We’ll outwork the competition.

✔ Aggressive Negotiating – We’ll fight for your deal like it’s our own.

✔ Market Strategy that works for you and your time frame.

So Why Does This Matter?

Because if you’re paying for an agent (and you are), you deserve one that actually works for YOU, not just someone who’s along for the ride.

That’s where we come in.

The Bottom Line?

When choosing real estate representation, how you pay matters as much as what you get. Let's compare two fundamentally different approaches:

Traditional Percentage-Based Model (The More You Pay, The More They Earn)

• 3% Commission on a 500khome=500khome=15,000 fee

• Same 3% on a 750khome=750khome=22,500 fee

• Perverse Incentive: Agents benefit when you pay more

• Same Services: Whether buying a condo or a mansion, the work is similar

• Hidden Cost: Built into your purchase price, reducing potential savings

Next-Nest Fixed-Fee Approach (Fair, Transparent Pricing)

• One Clear Price: Know exactly what you'll pay upfront

• Aligned Interests: We succeed when you get the best deal

• Scaled Services: Pay only for what you need (Canary/Robin/Cardinal plans)

• True Savings: More of your money stays in your pocket

• Full Expertise: Same professional service without percentage markups

The Math That Matters

On a $600k purchase:

• Traditional: $18,000 commission

• Next-Nest: As low as $3,500 (Canary Plan)

That's $14,500 potentially back in your budget for renovations, furniture, or savings.

Why This Difference Matters

1. No conflict of interest in purchase price negotiations

2. Transparent value for services rendered

3. Modern approach that puts buyers first

We believe you should pay for expertise and results, not just the price tag of your home.

See exactly how our plans compare to traditional models and calculate your potential savings.

Because when it comes to one of life's biggest investments, how you pay should make as much sense as what you get.