What rationale do real estate agents have for charging a percentage of the sale price, regardless of property value?

Why is it considered justifiable to pay real estate agents 5% commission on a home worth over $1 million? I cannot find any agent who can defend this fee structure. After purchasing during the last market downturn, I am now planning to sell my property. To engage a ‘full service’ agent, I am facing a minimum fee of $65,000, despite their workload being comparable to selling a $100k property, which would only earn them $5,000. How does this make any sense?

Additionally, if anyone is looking for a well-kept property that includes two homes on one lot (main house with 3 bedrooms and 2 bathrooms, plus an in-law unit with 2 bedrooms and 1 bathroom) on a serene one-way street in Alameda, feel free to reach out to me. Both homes are currently being used as Airbnbs and will be vacated by the time of closing.

Hey Luna79, I totally get your point – it can feel like the commission structure is a bit outdated. Some argue it’s due to the variable market conditions and the expertise agents bring in negotiating. Still, there’s an ongoing debate whether fixed fees might be fairer. Good luck with your sale!