Well, Jack, the E&O deductible on a million-dollar transaction could easily eat up the agent's split. On a $200,000 deal, the exposure is a lot less.
There's another part that the "isn't ten thousand dollars enough for you people" crowd doesn't get - you don't show million dollar homes in a Kia. You don't hold those houses open wearing Old Navy. What works to sell $350,000 houses doesn't really work at a million.
But agent's overhead is only part of it. The other part of it is this: good agents make good money, and don't have to chase down every fractional deal. Why take the time to get and service three of these listings when you can devote your energies to one seller who appreciates and values your services?
Look. I don't mind if people want to FSBO, want to hire limited services, want to go on the cheap. But real estate brokerage services are not a public utility - and the very best agents don't have to work for you at a discount. In fact, not only do they expect to be paid full freight, they expect to be treated as professionals, and with the utmost respect.
To be fair, John was completely respectful in his comments.