If It Seems Too Good To Be True, It Probably Is
Read the full video transcript below:
In real estate, there is one lesson that comes up again and again:
If something seems too good to be true, it probably is.
That lesson applies to buyers, sellers, Realtors, brokers, contractors, and business owners. In today’s market, many real estate agents are being offered flashy deals, high commission splits, low fees, and promises that sound amazing. But smart Realtors know one thing:
Not every business model is built to last.
If you want long-term success in real estate, you need to think beyond the short-term offer and focus on stability, growth, leadership, and sustainability.
Why Cheap Pricing Creates Problems
Anthony Lamacchia shared a story about a friend who hired a contractor to work on his house.
The friend received three quotes:
- $80,000
- $75,000
- $50,000
He chose the $50,000 option because it looked like a great deal.
At first, everything seemed fine. Then problems started happening:
- Workers stopped showing up
- Materials were delayed
- The project slowed down
- Communication got worse
Eventually, the contractor could not finish the job. The homeowner had to hire someone else and spend even more money fixing the situation.
This happens all the time in business.
Some companies offer prices that simply are not realistic. They want fast growth, attention, or market share, but they are not pricing their services in a way that can support long-term success.
How This Applies to Real Estate Agents
The same thing happens in the real estate industry.
New brokerages and real estate companies often launch with extremely high commission splits, low fees, and aggressive recruiting offers. On the surface, these deals can look incredible.
But Realtors need to ask an important question:
“Can this business model actually survive long term?”
Many agents make decisions based only on commission splits. That can be dangerous.
A brokerage needs money to provide:
- Training
- Marketing support
- Technology
- Leadership
- Recruiting
- Staff
- Office operations
- Legal protection
- Growth opportunities
If a company gives away too much money upfront without a sustainable plan, problems can appear later.
What Realtors Should Think About Before Joining a Brokerage
If you are a real estate agent looking to grow your business, do not focus only on the biggest split or lowest fee.
Instead, ask questions like:
- Is this company financially stable?
- Can they support agents long term?
- Do they invest in training and leadership?
- Are they growing the right way?
- Will their model still work in five years?
- Are they helping agents build a real business?
Too many Realtors jump from company to company chasing the next “better deal.”
That usually creates instability, confusion, and lost momentum.
The best agents build their business with companies that have a strong foundation and a clear long-term vision.
Real Estate Growth Requires Investment
Successful agents understand something important:
Growth requires investment.
Anthony shared how his company chose an expensive CRM system years ago because it was the best option for long-term growth.
It cost more money upfront, but it allowed the company to:
- Customize systems
- Improve follow-up
- Scale operations
- Support agents better
- Create long-term efficiency
That investment helped fuel growth.
Many Realtors make the mistake of trying to save money on everything. But top-producing real estate agents know that smart investments often create bigger results later.
Cheap Does Not Always Mean Smart
Consumers often choose the lowest price because they think they are saving money.
But many times, low prices lead to:
- Poor service
- Weak communication
- Lack of support
- Delays
- Stress
- Bigger problems later
The same applies to real estate businesses.
A brokerage offering unrealistic deals may eventually need to:
- Raise fees
- Cut services
- Reduce support
- Change compensation plans
- Make sudden business decisions
That creates uncertainty for agents.
As a Realtor, your business depends on consistency and trust. You do not want your brokerage constantly changing direction because the business model was not sustainable from the start.
Smart Realtors Think Long Term
The best Realtors think like business owners.
They ask:
- What will help me grow over the next 10 years?
- Which company can help me build a brand?
- Where will I get the best leadership and coaching?
- Which environment will help me improve my skills?
- Who is investing in systems and people?
Real estate success is not built overnight.
It comes from:
- Consistent lead generation
- Great client service
- Strong systems
- Smart leadership
- Long-term thinking
A Big Lesson for Realtors in Today’s Market
The real estate market is changing quickly. Inventory is rising in many areas. Buyers are becoming more cautious. Sellers are adjusting expectations.
In times like this, Realtors need strong companies and strong leadership more than ever.
This is not the time to chase unrealistic offers or flashy promises.
This is the time to build your business the right way.
A great real estate brokerage should help agents:
- Increase production
- Improve marketing
- Build systems
- Handle market shifts
- Grow profitability
- Create long-term stability
Those things matter far more than a temporary “too good to be true” deal.
Final Thoughts
The old saying is true:
You get what you pay for.
That does not mean the most expensive option is always the best. But it does mean that Realtors should think carefully before making major business decisions based only on price or commission splits.
The best real estate agents focus on long-term growth, smart investments, and strong partnerships.
In today’s market, that mindset matters more than ever.
If you want to grow your real estate business, build something sustainable, invest in the right systems, and surround yourself with leaders who are thinking long term.
Anthony Lamacchia: If it seems too good to be true, it probably is, but there’s a never, ever, ever, ever-ending supply of companies that are brand new in business, and they don’t know how to price. They don’t know how to set financial barriers that will keep them in a good position. This happens in all different businesses that you can think of out there. Obviously, for me, I think of real estate, I think of construction, I think of conversations I’ve had with my brother in the landscaping space. This is something that I think everyone should think about for a few minutes.
I just had a friend who had some work done on his house last fall. He called me several times, saying, “After they started the project, they started strong, and then they weren’t showing up. Then they weren’t completing the project, and then materials weren’t getting delivered and things fell off.” After about the fifth call, I said to this friend, “Let me guess, you hired the contractor who gave you the lowest price.” This friend said, “How did you know?”
I said, “Tell me the prices,” and I’m going to tell you all fake prices so that no one connects the story. “80,000, 75,000, 50,000. I hired the person at 50,000.” I said, “What would make you think that the one at 50,000 could do the same exact job as the one at 75,000 or 80,000? That’s not possible. That’s not feasible. Now you’re surprised that you’re running into trouble?” In the end, this friend had to hire another contractor, have them out. They had to complete the work.
The same kind of thing happens in the real estate space all the time. There’s a never-ever-ending supply of agents who turn into brokers. They get into the brokerage business, they start a brokerage, and they set their splits and their fees and their financial aspects of their company at unrealistic numbers.
Now, some of that is done for normal capitalism and competitive reasons for an initial phase to get people in. That’s normal. Walmart does it. Walmart goes into new markets, lowers their prices extremely low, they call it dumping. They basically drown all the competitors in the market, and then within a year or two, they raise their prices. That’s harder to do in the brokerage space. We all know that because no matter where an agent is, there is always another place they can go for a higher split, better split, higher split, better split.
When you’re an agent and you’re evaluating companies, you have to think to yourself, “Does it make sense for me to go to this company? Does the financial arrangement, the financial offering that they are giving me, does it make sense? Is it sustainable? Is it long-term?” You don’t want to be one of these agents that goes to a company and things change within a year or two, and they happen in an abrupt manner because the owner is under significant pressure. That doesn’t help your business.
Or maybe one of these agents that’s been at a company that goes bankrupt, or loses deposits or spends their escrow account or some of these crazy things that have happened. You don’t want to take part in that. For those that that’s happened to, you can relate and you can remember how difficult that was. When I talk to my brother, he tells me stories of when he goes out and he prices to do someone’s front walkway. He tells them, “Oh, it’s $7,800.” They say, “Sorry, Joe, I’m going to go with this guy who told me that they can do the job for $4,800, $3,000 cheaper.”
Now, what that homeowner should be thinking about is, “I want to make sure I’m comparing apples to apples, not apples to oranges,” but not everyone thinks that way. People often go to the lowest price because they think they’re going to nickel and dime and cheap their way to being rich. Wealthy people, successful people, they don’t get there from being cheap. They don’t get there from nickeling and diming. They get there by making investments, by investing money, by investing in themselves, taking risks, investing in things that are better.
I can remember 12 years ago, we bought a CRM. We looked at all different customer relationship management systems. In the end, I went with the most expensive one. It allowed me to customize, it had the best reputation, but it was expensive. That’s what we decided to go with. Please keep this in mind in your business moving forward. Are you doing business with companies that actually can sustain what they’re doing and actually can be a good company to be with? You have to ask yourself that.
If you are getting offered some kind of special deal or something unusual out of the ordinary, you should ask, “Hey, are you doing this just to get me in, and then you’re going to change it later?” If they answer honestly and they say, “Yes,” good for them for being honest. Now, you’re more aware when you’re going into it. I hope that makes sense. I hope everyone thinks about that. The old saying, “You get what you pay for,” is true in most cases. Good luck, happy home selling.
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