Agent and broker fees are tied to the house price—a fundamental misalignment where compensation scales with asset value rather than work performed. Transaction fees for inspection, appraisal, credit, and title are dwarfed in comparison to house price, making them seem reasonable even when overpriced.

Fees are expertly designed to feel less painful since sellers pay real estate commissions "off the top" and buyers unwittingly finance all mortgage commissions inside their rate. Intermediaries control key steps in agent commissions, broker fees, lender fees, and processing charges across every transaction. Lending structures embed hidden pricing spreads that inflate borrowing costs through rate markups tied to fees and leverage.

Real estate agent fees are 2x other developed countries as a percentage of house price. Lending commission and excess interest make up 40\% of transaction costs, yet remain largely invisible to consumers. A borrower comparing mortgage rates sees numbers like 6.5\% versus 7\%, not understanding that the difference represents tens of thousands in hidden commissions compounded over decades.