In most sale and purchase transactions, there are two real estate agents involved – the agent who has the listing, and the agent who found the buyer. While the total agreed commission paid by the seller doesn’t change, it is the seller’s listing agent that agrees to cooperate with and to compensate the selling agent, not the seller directly.
For example: A seller enters into a 6% listing agreement with a full commission agent. The seller’s listing agent then enters the property onto the MLS and offers 3% commission to any other agent that finds a buyer. At closing, the seller pays 6% to his or her listing agent, who in turn shares 3% with the selling agent.
The seller is effectively paying 3% to the agent that listed their home (the listing side commission), and 3% to the agent that actually found their buyer (the selling side commission).
Realty Direct offers this same MLS exposure and cooperation with the selling agent, but for only 4% total commission. By discounting the listing side commission, Realty Direct gives home sellers access to those agents doing the selling for less commission.