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Do you trust your clients enough to adopt this compensation model?

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Real Estate Professional | 29 Apr 2015, 08:02 AM Agree 0
Tired of seeing his clients resent agents for their high earnings, one Toronto-based broker is trusting his clients enough to put his income firmly in their hands.
  • | 29 Apr 2015, 12:26 PM Agree 0
    It is high time we as, an industry, stop doing stupid discounting tricks, stand up and prove to consumers the value we bring to the transction.
  • Charlene | 29 Apr 2015, 01:17 PM Agree 0
    Agreed. It is an interesting social experiment, but with a similar structure to the way real estate brokers work in Australia. If I'm not mistaken, in Australia they separate real estate service fees from marketing fees. When they sign a listing agreement, the vendor agrees to the commission that's paid to the listing and cooperating brokerages, and then the conversation turns to, "And how much would you like to spend on marketing for your property." So the people that want their property advertised in all the daily newspapers pay for that advertising. If they want wine and cheese served at their agent open houses, they pay for it. Those 12 page glossy brochures.... paid for by the vendor. It's an interesting hybrid solution that provides clients with options.
  • Najib | 29 Apr 2015, 04:37 PM Agree 0
    If one can not defend his or her value to the client, how could they possibly defend the clients' interest on the negotiation table.
  • Comission Wars | 29 Apr 2015, 06:58 PM Agree 0
    More Agents!! More Agents!! More Commission wars!! Sign up more agents and let them fight over their own model...this is great the agents are fighting with themselves!!

    More Agents!!!!
  • Toronto realtor | 29 Apr 2015, 10:30 PM Agree 0
    Why are so many agents so adverse to change? We are making a good living, I've been at it for over 20 years, and there is truth to the fact that as long as you have clients, specially listings, you will make money and rather quickly. Market is HOT, prices have gone way up and yet some of you think that just because the prices doubled, your income has to double with it. That is just not right way to approach it, specially now when stuff sells overnight! I know we have expenses, large ones, and they need to be covered by our income but my expenses have NOT doubled while house prices have gone up substantially and the commissions have gone up with the price. It is actually funny how we talk about supporting the neighbourhood, giving back to the community and all that stuff. Some agents could not care less about their community and the only reason some of you "donate" your time or money is to be featured in some article or get your name in the press. It is sickening how many times I've seen exactly that! How about giving back to the community by offering not only superior service but also lowering the cost of commissions? The sellers will definitely appreciate that as will the buyers! Funny thing happens... you get more business (referrals etc) and you still make your money. THat would also show people like "Commission Wars" above that we do work for our money, not just to steal it for a quick deal... Nobody is asking any of you to do it for free, just an honest and fair price. Anyway, that is my 1.5 cents worth!
  • Patti Secord | 30 Apr 2015, 09:22 AM Agree 0
    in the past to repeat clients offered an hourly option they always took the standard %
    probably to my benefit if they had taken hourly but I have rural seasonal market
  • MORE AGENTS | 01 May 2015, 09:21 AM Agree 0
    Listing service is offered at $1,000 -$2,000 range which is more than generous .(consumers shop till you find it there are 60,000 agents)
    Out of those 60000 agents there are great ones that will do it for 1000-2000!!!
    Basically online work and 70-90% another agent brings a offer..... The selling agent I guess( 3000-4000 max for now!!) can deserve a little more but in a market that sells itself and condos that have 4 walls a status certificate how in the world can agents justify asking 4-5%!!!!!!

    Accountants do a a lot more work and they only charge between 2000-3000 for a taxes for a small bus/personal cana agent who is a tour guide, does some online work be worth 5- 10 times more???
  • Linda | 04 May 2015, 03:38 PM Agree 0
    Why is it that when a realtor choses to work for less than what a "status quo" realtor would work for, the "status quo" realtors go CRAZY? The "status quo" realtors use the same old argument to try and diminish the worth of the "fair" realtor, i.e. "If a realtor can't negotiate their own commission, how can they negotiate on behalf of the seller?". In reality, one has nothing to do with the other.

    I think the "status quo" realtors greatly FEAR the fact that there are good realtors out there that are not greedy and as a result, may very well assist in the change of the landscape of professional real estate. I am a very good professional realtor that works very hard and does a very good job for my clients for a reduced fee. Because of this, I have had "status quo" realtors phone me and read the riot act to me for NOT charging what they do. Why not live and let live and let change happen for those who want it? The world won't end.
  • John Murphy / Broker | 04 May 2015, 06:00 PM Agree 0
    My company was built around an idea close to what Mr Beach is referring to. I actually incorporated in 2010 under the name Hybrid Realty. I Offer sellers several listing packages from not much more than assisting a Private Seller through to a Full MLS listing and beyond. I explain to them at the time of the Listing that if they want full service I expect to be compensated with a "full" commission. If they are willing to do some things themselves I will make it worth their while. When it is explained in common sense terms most Sellers elect full service with a fair and reasonable commission. I have no problem with whatever package they decide on as it frees up my time to help others.
  • Crystal Ball Realtors | 08 May 2015, 07:56 AM Agree 0
    Consumers you can get the trading of real estate done for $1000-$2000 just do a little internet shopping and little work. YOu will save 20,000-50000 ..using a 500,000-1,000,000 range of home prices. Don't get me wrong nothing wrong with realtor help it is only worth 1,000-2,000 tops.
    Plenty of great agents who will sell u a house and only charge $1,000-$2,000 and they will list it for that too. There is no rocket science in trading real estate...if it were it would take more than high school diploma, 3 months of multiple choice questions, a taxi,suit and start touring.

    80 % of the time these agents don't know the answers to the questions, matter what they tell you they don't have a crystal ball,
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