AI Is About to Break the Real Estate Commission Model
AI Is About to Break the Real Estate Commission Model — Here's What It Means for Home Sellers and Agents A new industry report says consumers are overpaying for roughly half the cost of selling a home — and that the era of the automatic 6% commission is running out of road. For decades, the math on selling a home felt fixed. You hired an agent, you handed over somewhere between 5% and 6% of the sale price, and you didn't ask too many questions about what that money actually bought. That arrangement is now being pulled apart — not by a lawsuit, not by a discount brokerage, but by artificial intelligence and the consumers learning to use it. A new 32-page report from the consultancy Alloy Advisors , titled "The Home Sale Transaction, Reconsidered," makes a blunt argument: out of the 23 distinct tasks an agent performs during a home sale, real estate agents clearly outperform AI on just three of them. And while those three tasks are genuinely valuable, the report est...