Van Davis, the CEO of Foxtons North America, has started a campaign against customary 6% real estate commissions in favor of 3% rates. The company was started in 2000 and says it has helped thousands of home sellers to save more than $100 million in commissions. Mr. Davis spoke recently with The New York Sun’s Maura Yates.

Q: Foxtons new advertising campaign, “LOV3%,” promises to save home sellers money by halving traditional commissions while still providing full services. How can your company afford to do that?

A: My previous history in this business is as the CEO of Century 21. When I was there, being a traditional brokerage, we watched all the competition. But the fact of the matter is, I didn’t see anything new. Nobody ever really came up with a compelling real estate model that had the potential for changing the industry. In Great Britain, Foxtons worked all the kinks out, so we’ve been taking that model and bringing it here.

American consumers are sick of paying exorbitant commissions. Average folks who are selling a house have to spend three-quarters of a year’s salary to have someone sell it….For 3%, we do exactly the same things. We don’t have tons and tons of offices around. We believe it’s really archaic. The business of real estate is not done in offices. It’s done over kitchen tables. That keeps our overhead at a minimum, which gives us a reasonable profit at 3% while giving consumers a huge break.

You have said that you believe the standard 6% commission model is inherently flawed. What’s wrong with it?

Would you rather pay 3% or 6% for the same service? Commissions in the United States are much higher than anywhere else in the world. Great Britain has a 1.5% average. China has 1%. Australia averages between 1.5% and 2%.We are one of the only countries with excessive commission rates, and nobody yet has come up with a compelling model to provide customers with full service because that’s what they want – full service. They want somebody to hold their hand and reduce the stress of that process. They want what they have been getting all along, but they don’t want to pay for it. Over the last five years, real estate prices have at least doubled, but it’s the same transaction. The agent isn’t doing anything today they weren’t doing five years ago, but has anything really happened that should cause them to get twice as much as they would have five years ago?

Aside from the low commissions, what sets Foxtons brokers apart?

Traditional agents do every aspect of the deal. Our agents fall into seven categories. Some are new business consultants. Buyers’ agents only work with buyers. Listings agents only work with sellers. We have 21 full-time professional photographers who put together digital virtual tours. Our agents are far more productive than anyone in the industry.