Real Estate Professional forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Should you cut your commission rate?

Notify me of new replies via email
Real Estate Professional | 20 Oct 2014, 10:27 AM Agree 0
Competition is tough, clients are haggling and you want more market share – should you be cutting your commission rate?
  • | 20 Oct 2014, 01:36 PM Agree 0
    Quick answer is not likely - if you have a quality product (you, your brand, your knowledge, your time) don't discount. That's why Rolex and Rolls Royce don't have fire sales. If your product belongs in a discount mall - go ahead
  • Scott Simmons | 20 Oct 2014, 01:58 PM Agree 0
    It's not just a matter of cutting your commission but actually looking at how the process has changed in the last decade or so. Now the buyers and sellers are doing half the work themselves and the cost of business has dropped considerably. In this day and age most buyer are plugged in like never before and gather all the info on what they want long before they need the services of a Realtor.

    My advise is not to cut your rates and keep charging what you have always charged and sit back and watch the business pass you by. Technology is going to force so many agents out of the business that it really wont matter what you do. Just look at your own web sites and see if you are adding value or not. My guess is 99% of agent add very little value to the process for the fees charged. Seems as if most agents are caught in a time warp of the 1990s era hording all the info not giving on fear that they will not receive.

    Just wait until trula, zillow, redfine and the likes wash up on our shores. Are you really willing to say I wont change? Good luck with that.

    Cheers Scott Simmons One Percent Realty Salt Spring Island BC.
  • Angela | 20 Oct 2014, 02:21 PM Agree 0
    Very Very useless article.

    To cut or not to cut?! It’s always depends on many circumstances. Rolls Royce doesn’t have any sales because they produce limited amount of car. You have to stay in line to get one, more than one year. In case you are not a member of the club you most likely can’t even choose a color for your car.

    While we increase number of agents (even part-time agents); always will be somebody who can cut commission.

    As realtors we can’t even keep our MLS system closed, we are losing each court case with competition…

    That means don’t even discuss: to cut or not to cut.
  • Tom Navratil, Pemberton Holmes SSI | 20 Oct 2014, 02:27 PM Agree 0
    With respect to Scott's comment, I disagree. It is the tasks we do that changed, and are changing, with the amount of work forever increasing. Until some time ago, as Realtors, we played a major role in finding a property for clients (even past the era of the under counter MLS books, anyone remembers that?). Now the clients pick most of the properties on the internet and often spot them before we do with instant auto email services. However, where a Realtor comes in, often with a big difference in quality of service from Realtor to Realtor, is to facilitate the transaction, writing an ironclad contract, representing the clients' interest without fault and keeping the transaction together through the due diligence period. After the conditions are removed, follow-up is often equally important to ensure the lawyers get the right info on time etc. Many Contracts fall apart these days in their initial stages (to the disappointment of both the Sellers and the Buyers) - in many cases a prudent, diligent, committed and informed service of the Realtor could have prevented that.

    The other problem with commissions is that we the Realtors do tons and tons of work for free, whether servicing listings or showing properties. Then we get paid from a sale. De-facto, that Seller pays for lots of the free work we do in between. Perhaps a pay as you go structure with a smaller commission as a bonus when the property sells would help resolve that, and could possibly result in lower commission costs.

    To be in the Real Estate business is expensive and increasingly demanding on time and effort - professional and licensing fees, franchise fees, desk fees, advertising, equipment, car etc etc. The bottom line is that with keeping a physical office in town (as well as one at home!) and a range of services required to successfully complete a transaction, the current commissions are, by and large, the lowest commissions at which we can stay in business and make a living at it. At least here on Salt Spring Island I do not see any Realtors living in posh homes and driving posh cars. In fact, some do not even own a home. And in the selling season we often work 14 hours a day, 7 days a week. And that is not to even mention the feast and famine nature of the business!
  • Doug Best, Royal LePage Summit | 20 Oct 2014, 02:27 PM Agree 0
    Representation has changed as well and we as REALTORS are held accountable for our actions more than ever. If the public wants a quality agent that is going to represent them, they will be more than happy to invest in that person(s). I'm no different, when I interview a person to do a specific skill for me; I am looking for someone to prove experience, integrity and knowledge. All those people come at a higher price and I am willing to INVEST that money into that person(s) to know the job is being done properly and if there is a mistake, the fact that I am paying top dollar for said person(s), I can rest assured it will be corrected. If you don't feel your representation is worth what others are charging, you don't feel you add value or your feeling outside pressure to reduce your commissions then maybe you have an internal unworthiness feeling or maybe you just can't deliver what truly needs to be delivered to the client. After all, the downward pressure from the public on commissions comes from agents that cut corners (ones who don't charge enough but yet say they can do the same work for less money) Just because someone can research something on the internet, doesn't diminish your value, if you think it does, it's you that should be leaving the business.
  • Milan | 20 Oct 2014, 02:50 PM Agree 0
    "Good service is like the oats. If you need a good ones you have to pay the price. If you are satisfied with ones that went thru the horse,
    well, that comes with the discount". This quote sais a lot.
  • Old Timer | 20 Oct 2014, 02:59 PM Agree 0
    Having assisted in the sales of over one billion dollars in residential properties and having over 40 years experience as a broker/salesperson and owning realty franchises and private real estate companies, I am more then familiar with the 'commission' dance. The truth is: Realtors are doing less work then they did twenty years ago. Everything is available by a few key punches on a computer. Most buyers use the MLS themselves to locate properties. They call a Realtor and the Realtor does the showing and writes the offer. Realizing the 'printed page' advertising has become close to obsolete, personal costs have gone down. What motivates a Realtor to charge higher commission is the overhead costs being paid to the larger franchise offices. Many of the offices are much to opulent and expensive to operate. Thus the inflated desk fees and then there is the percentage to the franchise corporation. Less and less buyers are coming into these elaborate offices so the question becomes: Are they necessary? Commissions haven't changed over many decades. The evolution of the future will be lower commissions, smaller offices, reduced overhead and more competition. Commissions earned will have to reflect the work that is done on any listing or sale regardless of the property price. The same amount of work goes into the sale of a $50,000 manufactured home as does with a $500,000 home. It is hard to justify the difference paid in commissions. The general buying and selling public are becoming more aware of this discrepancy and are turning to REaltors charging lower commissions. As to the quality of service and Realtor experience difference between a cut rate Realtor and a Realtor who charges the norm, their basically isn't any. Many top gun Realtors, such as myself, have made the adjustment and are now representing the lower commission charging offices. The public wins all around. Over the next half dozen years, many of the main stream real estate companies will be going out of business because they stubbornly refuse to 'smell the coffee' and change their game plan.
  • Nina | 20 Oct 2014, 03:47 PM Agree 0
    I had a successful career before i came to real estate, At no time did my boss ask me to cut my salary to accommodate a client. My work as a realtor has value and the services i provide are valuable. Doctors, Lawyers, judges, do not reduce their fees. Now if you want me to reduce the amount of work i do for you , and relinquish all liability for the transaction the client should hire the 1%er . Full service agents are responsible to educate home sellers and buyers. It is up to us to ensure that they understand and appreciate the valued service a full service agent provides and how that impacts the value of the transaction and the liability of the transaction.
  • nina | 20 Oct 2014, 03:52 PM Agree 0
    I have learn as a new agent that our profession is not limited to the transaction. I have learned that it is much broader... I have to provide a wealth of information to my clients and I have to inform them of the challenges and pitfalls when purchasing or selling a home. As a new agent, i don't share your view at all. Perhaps you need a change.. After all you have profited handsomely from the industry/.
  • Scott Simmons | 20 Oct 2014, 04:44 PM Agree 0
    I tend to agree with the "old timer" and part of the problem is high desk fees and excessive board cost. On Vancouver Island we have two board with two offices that are fully staffed doing what? I'm not sure. They always look busy when I go in there but not sure what they actually do. It's not as if they are doing the old manually input of listing info. In all fairness BC could have two boards Vancouver and non Vancouver.

    Tom we have clashed over this same issue so many times over the last 8 years I have lost track but even you have to admit. Your brokerage changed over the last couple of years and I'm sure this was to do with desk fees and lowering them. We have both been against the high cost of useless print ads that seem to keep local papers afloat more than driving business.

    I disagree with "the current commissions are, by and large, the lowest commissions at which we can stay in business and make a living at it" maybe this is because there are so many agents all trying to make a living and some only selling one or two homes per year. The number of agents seem to be actually going down and down every year. I'm sure this is not the case in Toronto and or other booming cities but once the market peaks out I'm sure then numbers will drop at a rapid rate and probably never get as high again. Weather we like it or not technology will replace so many. There seems to be a deep divide among those that leverage the tec and those who bury their heads it the sand and think this will pass.

    In my opinion we are basically in an on line business. Keeping those offices, print ads, boards is just money down the drain that should be used creating new on line mouse traps that will service the clients going forward. Living in the past an hopping to double end a few big homes per year is going to be a thing of the past. Cheers Scott.
  • Narc | 20 Oct 2014, 05:44 PM Agree 0
    Having worked alongside my mom for over a decade, she's been in the business for about 20-22 years or so. She takes extreme pride in her work and strives to give her clients the best service possible, something I notice is really lacking among newer realtors who are just looking to make a quick buck. I personally know other realtors who's only goal is to move you along as quickly as possible whereas my mom does extensive marketing, open houses and lots of face time with clients so that they feel like they're getting a deal. She does offer things like discounts on commission if the client is buying AND selling with her. She doesn't have to advertise herself as much as I see other realtors do because she gets a tremendous amount of repeat/referral business, amounting to at least half of all of her yearly transactions.

    You can't say it's easier now because I would say there's more work to be done to stay relevant in a social media driven world. You have to keep a presence active on twitter, facebook and whatever junk is out there because people THINK that's important. Advertising alone is so varied now with print being a miniscule part of the formula these days and there being hundreds of websites to market your properties on, you can quickly become overwhelmed by the amount of options. I have far more work to do now than I did in the late 90s even if it's easier to access the MLS and gather info. Those realtors who pay 1% or whatever in my city are not very successful but some are and if it works for them then great. It's not true with every realtor which is why its important for people to vet their realtors from the beginning so you know you're getting the best service for your money.
  • Narc | 20 Oct 2014, 05:44 PM Agree 0
    Having worked alongside my mom for over a decade, she's been in the business for about 20-22 years or so. She takes extreme pride in her work and strives to give her clients the best service possible, something I notice is really lacking among newer realtors who are just looking to make a quick buck. I personally know other realtors who's only goal is to move you along as quickly as possible whereas my mom does extensive marketing, open houses and lots of face time with clients so that they feel like they're getting a deal. She does offer things like discounts on commission if the client is buying AND selling with her. She doesn't have to advertise herself as much as I see other realtors do because she gets a tremendous amount of repeat/referral business, amounting to at least half of all of her yearly transactions.

    You can't say it's easier now because I would say there's more work to be done to stay relevant in a social media driven world. You have to keep a presence active on twitter, facebook and whatever junk is out there because people THINK that's important. Advertising alone is so varied now with print being a miniscule part of the formula these days and there being hundreds of websites to market your properties on, you can quickly become overwhelmed by the amount of options. I have far more work to do now than I did in the late 90s even if it's easier to access the MLS and gather info. Those realtors who pay 1% or whatever in my city are not very successful but some are and if it works for them then great. It's not true with every realtor which is why its important for people to vet their realtors from the beginning so you know you're getting the best service for your money.
  • DIY..do it urself | 20 Oct 2014, 06:13 PM Agree 0
    Most agents are tour guides and the lawyer($1000 a bargain compared to 15,000-50,000 for a agent) is the one really making the deal happen. Why would anybody need a agent for a condo or house? The only things I see agents offer is they take the emotion out of the price negotiations and let you now about previous sales...everything else you could google it for free.. competition bureau will remove one thing very sooon when the public will have access to previous sales!!!!
  • old fox | 20 Oct 2014, 07:43 PM Agree 0
    cutting commissions is a serious question and an amusing question at the same time. Successful individuals have a lawyer, an accountant, an investments advisor, a realtor, a doctor, and maybe even a nutritionist. Why? They know that experts can move them forward in life. Then there are the people who now everything. They have advice for everyone else. Being so smart, they make all decisions with little input from the greedy and stupid advisors. Often they are also poor. The unknown factor: Are they poor because they know everything, or are they poor because they just are?
  • By Sabrina Imseis | 20 Oct 2014, 07:58 PM Agree 0


    I think that if you start cutting commission, word spreads around fast. People will be thinking of you as a discounted agent. No matter how much work you do for your client, that's what you'll be known for. If you can't negotiate your commission, how strong will you appear in the eyes of your client when you are negotiating for them? I would not cut my commission instead I would give my client all the reasons why I charge what I do! Just my opinion.
  • Eddie G RE/MAX | 21 Oct 2014, 12:13 AM Agree 0
    The subject of cutting commissions has been around longer then I've been a realtor! 35yrs. later it is still
    a topic of heated discussion. There are many business models in our industry offering the public a discount
    on commission...fair enough there is room for everyone...or is there? What happens in a 'down' market when
    selling a home takes longer? A discount realtor has to pay monthly expenses and continue marketing their listings.
    Discount realtors work on 'volume' if the volume doesn't materialize they go broke. Some discount realtors prosper
    because they are 'good' realtors and would prosper whether they worked as a discounter or some other model.
    Contrary to someone's comments on this subject, realtors today work smarter not harder and business is
    not easier because the public does their homework...the public come to realtors to gain professional insight about
    neighbourhoods, market statistics and trends but more importantly pricing strategy and negotiating skills. so, what is the answer?
    Bring 'value' to the market place, use pre-listing packages, professional listing presentations and tailored marketing
    plans to the table....Be proud, become a 'professional' you are worth every dime you charge.
  • Marg P at Sutton | 21 Oct 2014, 12:36 PM Agree 0
    I can't match some of the low rates that are out there, and make any money - I offer service and reasonable rates and have not lost any business to the low rates
  • Old Timer | 21 Oct 2014, 12:44 PM Agree 0
    After all is said and done, it all boils down to 'payment for work'. Truthfully, how much work actually goes into a listing or a sale? It is true we now have reams of paperwork to fill out which we did not have 30 years ago. But at best, the paper work takes us a day to do, tops. If you choose to show dozens of houses to a prospective buyer, you could spend months with them. OR, you could 'cut to the chase' narrow down the choices to their actual criteria, and sell them a home in one to three days. Listings take a day to obtain and a day or so of paperwork and preparing marketing and advertising. Our 'constant' contact with our Sellers and arranging for showings takes up an hour or so a week. All in all, perhaps we spend a full week (40 hours) on a sale of a listing. How much is our 'week' of work worth? $3,000 isn't a bad salary! Take this test: write down all the actual time you spend on making a sale or obtaining and servicing a listing. You might be surprised. An 'active' Realtor usually makes $100 per hour for 'actual' time spent. That's not bad coin in my books. Superstars make double this amount. The answer is to lower your overhead. That probably means to represent a real estate company with low monthly fees. Another answer we should all be supporting is to amalgamate the board offices in B.C. and every Province. In B.C. we only need 3 boards. Also, we should investigate ways to regulate our membership. We should have a quota on the number of applicants each year. I know this wouldn't sit well with Sauder Business School, the many boards, Councils, Associations, etc. who derive their income from members dues. We can't really call ourselves 'professionals' if a real estate license can be had as easily as a driver's license. The 'culling' should be done from the individual office level, but we know that won't happen under present conditions. The major offices require lots of bodies, paying office fees, to survive. "Lots of bodies' does not equate to professionalism'. That's probably the reason why doctors and lawyers make 10-20 times as much as an average Realtor. Don't get me wrong; I have made a great deal of money selling real estate and charging the 'high' fees. I am not against making money. But, I do believe that 'times are achanging' and the 'evolution' of real estate is finally kicking in. Lower commissions are here to stay, and, the public are responding in a big way. To survive, Realtors and real estate companies will have to comply.
  • Ray Prudential | 24 Oct 2014, 04:43 PM Agree 0
    If you were going into open heart surgery and the cost was to be covered by the patient I do not think you would look for the one that would give you the best deal. You want someone who has lots of experience and a good track record ( more wins than losses ) and makes you feel confident in his ability to get the job done. If you fall apart in discussing your commission and cannot provide the vendor with enough positive reinforcement as to why you are worth it, then how confident will the vendor be in your negotiation with the buyer to secure the best price for your home. if YOU DONT GET WHAT YOU WANT YOU GET WHAT YOU DESERVE
  • Lowell at C21 | 26 Oct 2014, 02:37 PM Agree 0
    Most clients are ok with the commission rates we are requesting. It seems to be the sales people that are offering lower rates to out do the competition. The biggest problem with our industry is the fact that there are so many sales people that are part time and a great number of others in their 50's and 60's with government pensions. They are quicker to reduce commission rates because their income is supplemented hence they are not looking at Real Estate as their sole income to pay the bills.
  • Valerie | 26 Oct 2014, 02:46 PM Agree 0
    When I'm asked on a listing presentation if I'll reduce my commission. I always ask, "What part of my service would you like me to cut/not do"?

  • Rocket | 26 Oct 2014, 02:59 PM Agree 0
    Hey Old timer you make way too much common sense for the rest of the Realtors to understand or actually Want to understand. You know what they say about common sense don't you? The reason it is called common sense is because it isn't too common.

    I think you are being too generous too prove your point. Money earned per hour is probably in the 300-500 per hour range. Lots of 10,000-20,000 commissions out there based on todays home prices in the major city's across the country.

    I always get a kick out of the people who want to justify to not reduce their commissions by saying "well I offer full service" like their trying to insinuate the people who reduce their commissions don't do full service.

    By the way where did the commission structure originate from? At some point in time Realtors did it when homes were ten and twenty thousand dollars to purchase. Figure it out even with inflation since 1965 Realtors probably have the highest wage increase other than sport athlete's and CEO's.

    I will free of charge tell you stubborn full commission realtors a hint on the best way to do a commission reduction.
    On second thought you figure it out with some Common Sense.
  • Bill Lafferty | 26 Oct 2014, 03:55 PM Agree 0
    This is what I always say to sellers looking to hire a realtor based on their low commission rate, and I find it very effective:

    Discount agents attract and bring discount buyers who make discount offers. After all when does a Discount agent stop being a Discount agent, when do they stop their discounting...when they are negotiating an offer on your home? I sure don't think so, Do you?

    In order to get the absolute highest price possible for a home, you need a powerful negotiator, would you agree?
    So, if you hire any realtor so willing to discount their own commission up front with you, realistically what do you think they are going to do with your asking price when they are out there negotiating on your most important investment of your life time, your home?

    Which is more important...saving a few dollars on a real estate commission.... or selling your home for the absolute highest price and thereby netting the most money possible? Isn't it always the bottom line that matters?

    Real estate experts say: "To get the best service and absolute highest offer possible for your home always choose an agent based on marketing strategy, then with your agent discuss the right price and the right commission.
  • Rocket | 26 Oct 2014, 10:24 PM Agree 0
    Hey Bill Lafferty your comments will be passed onto Crea.
    You agents why don't you charge 10% because according to the comments I read above the more money you charge the better the agent.

    I don't discount I just charge less.

  • Mark Ranger | 27 Oct 2014, 09:18 AM Agree 0
    If a client were to follow my advice on such matters as marketing and price such that I could get the home sold quickly for the highest price I would gladly offer a reduced selling commission. Let's face it the bulk of what the public thinks we do to get a home sold is superfluous and unnecessary. What we really do is check emotion at the door and bring logic to the table in our professional capacity as negotiators. That said I ALWAYS offer those agents who represent the buyers of my listings as much or more a commission than that which prevails in our area.

    We need to understand that the <b>MLS®</b> is NOT a Multiple Listing SERVICE but a Multiple Listing System® through which agent share and cooperate to get each others listing SOLD. My market is not buyer but REALTORS® as I consider them my personal sales force working for/with me to get my listings SOLD. Collaboration not competition.
  • Robyn | 27 Oct 2014, 09:39 AM Agree 0
    This article is complete crap....I am a very experienced and very successful realtor that goes above and beyond with the marketing of my clients home and I don't have to charge my clients (the ones I'm working for and trying to get the most money in their pockets as possible, that is our job right?) 5% or 6%. I charge them 3%. They get one of the best for 3%, so to say you get what you pay for and that because I am with a brokerage that is trying to help our clients by charging less means we are less competent is a completely ignorant statement. This is 2014 people! Times are changing and I advise you to hop on board. Greed will end your career.
  • | 27 Oct 2014, 09:41 AM Agree 0
    Hey Rocket,
    You go right ahead and pass on what I said on to CREA and at the same time give your silly discounting narrow minded head a shake. By law commissions are negotiable and even if I do charge 10%, so what?

    Commission is not a liability or an expense, it's a marketing tool. Commission can be like a powerful magnet or irresistible lure that attracts the most agents, the most showings, and the best and highest offers...or...it can be like a spray can of repellant that drives agents who have potential buyers away. Offering little or no commission will cost sellers money, not make them money. Offering the right commission will in fact make them money. Which is more important, how much commission you offer or how much money you net?

    Also, if you as an agent can't fight your way out of a wet paper bag in negotiating your own commission or income upfront with the seller, how effective, how competent, how capable are you going to realistically be in negotiating the absolute highest price possible for your seller's home?

    Rocket, the reason you charge less is obviously that's all you are really worth as an agent right now. You should seriously consider investing in yourself by taking some professional sales training courses so you can become a stronger agent that can negotiate the highest price possible for your seller clients and you won't continue to place such little value on the services you offer or the commission you charge.
  • Mark Ranger | 27 Oct 2014, 09:45 AM Agree 0
    <cite>"Marketing Plan"?</cite> Most marketing plans are little more than <b>"How I'm going to Spend my Money Bribing You <cite>(the Seller)</cite> to do Business with Me.</b> A true professional doesn't need to tell a prospect every minute detail what they are going to employ to get the house sold just as a doctor doesn't tell the patient what tools he is going to use. A true professional discovers the prospect clients motivations and determines first and foremost <b>IF</b> there is any prospect of being able to achieve that prospect clients goals. If there is no good chance that prospects expectations can be met a true professional will politely disengage and move on to the next case.

    Your marketing plan is your business. What matters is your track record and your rapport with the prospect client. They need to trust you. You interview them not them you.
  • Mark Ranger | 27 Oct 2014, 10:02 AM Agree 0
    The commission I charge depends largely upon the client. If it is going to be a costly endeavour I charge more. If that more difficult client is unwilling to pay my rate... so be it we <cite>(I happily)</cite> go our separate ways. If they are prepared to pay my rate then we both win. I charge more for strata titled properties because there is more cost involved and still get more strata listings than I want. And, of course, I always offer as much or more than the prevailing rate to cooperating REALTORS® as my fellow REALTORS® are the lifeblood of my business. <cite><b>They</b> (my fellow REALTORS®)</cite> are my true customers.
  • Rocket | 27 Oct 2014, 04:52 PM Agree 0
    Hey Bill and everyone else,

    Have I or "most" of the above agents who charge less said anything about giving less than the "normal" amount expected by a Buyers Agent. I always offer that Agent the "norm" for the city I live in. I understand how important that is. It is Marketing to the other Agents that works. The Agent is my customer not the buyer as someone mentioned above. I get that.
    On my end I am just more flexible. It has nothing to do with being a better negotiator. I just believe in my heart that I can make a decent living based on prices of homes today by taking less on my end. It is not a discount from me as it is my "normal structure". I will do the math for you so there is no misunderstanding here. I will use for this discussion 6% of the 1st 100,00 and 3% of the balance commission rate. I use that because "most" listings I see that come through MLS in my area offer 3% of the 1st 100,000 and 1.5% balance to the Buyers Agent.
    An average house that sold not too many years ago for 200 - 225 thousand now sells for 450,000. At 225,00 using that formula as a Buyers Agent I would make 4875.00. Now if I sell that same house today at 450,000 I would make 8525.00 using the 3%/1.5% rate. Same house just a few years later. I have had the argument from realtors but my expenses are higher. Actually no they aren't and we do less running around now because of the electronic world we live in. Some boards and Crea fees are a little higher but not much. Lets just say and I am being "really really really" generous here that our costs are $300 a month higher. Really thou the expenses are about $1500 per "year" higher for everything because I have done the math which includes fuel for your car.
    What price I give to my sellers for my commission rate I will never disclose for competition purposes.
    Bottom line is informed sellers who don't fall for the Fear Factor that some realtors insinuate will gladly list with me a Full Service Realtor with 20 years experience who has a marketing plan, good negotiating skills, a heart, and intelligence.
    The Realtors who use the Fear Factor sales trick remind me of when I take my car in to get serviced and they are telling me if you don't do this, or you don't do that, this could happen, or that could happen. Ring a bell.

    P.S. buy rental property , you can probably make more money in the long run anyways.
  • Bill Lafferty | 27 Oct 2014, 07:22 PM Agree 0
    Hey Rocket,
    By law commissions are negotiable. If you don't believe your negotiating skills and marketing strategy and services are worth more than you yourself think and you can't negotiate a higher commission from your seller than a cut-rate commission than I guess that's all you are worth.
    I make no apologies for what commission I charge my sellers as their listing agent. I recently negotiated and sold a home for one of my seller clients for $34,000 more than it's professional residential appraisal that had just been completed. Was I worth the commission I charged my seller as their listing agent? You bet!!!
    I hold my head high not down accepting my commission for a job well done!!!

    I also recently sold and negotiated a price for one of my sellers at $15,000 higher than the last sale in the neighborhood and this home was superior to my seller's home. Was I worth the commission I charged my seller as their listing agent? Absolutely!!!
    Once again, I hold my head high not down accepting my commission for a job well done!!!

    Once again bylaw commissions are negotiable. However if you feel that is the only advantage you offer your sellers is charging less commission than other realtors than your career as a realtor is a very self-effacing sad one. I am constantly competing with discounting agents like yourself on listing appointments and I seldom walk out without the signed listing at the above average commission rate I charge once the sellers see the value of my services, the results I get due to my negotiating skills and the superior marketing strategies that I use to get my sellers the absolute highest price possible for their home.

    Once again, any realtor that cannot effectively and successfully negotiate their own commission with their seller up front will not be able to effectively and successfully negotiate the highest offer for their seller. Once again when does a discount agent stop being a discount agent, when do they stop their discounting? When they are negotiating an offer on their sellers home? I highly doubt it, and I have not yet ever come across a person in their right mind who begs to differ.
  • Rocket | 28 Oct 2014, 03:30 AM Agree 0
    Discount from what?
  • Bill Lafferty | 29 Oct 2014, 01:16 PM Agree 0
    Hey Rocket,

    Read your own comments. By your own admission you stated "I charge less" which makes you whether you want to admit it or not a discount agent.
  • | 30 Oct 2014, 01:09 AM Agree 0
    Frankly, almost every article in this mag is totally useless, with zero reporting effort put in, and this one is no exception. Sum total:
    "Some people discount, some don't. Discount rates vary."
    Thanks for the blinding insights.
  • Bill Lafferty | 30 Oct 2014, 11:46 AM Agree 0
    The fact is some people focus so much on Commission that they lose sight of the most important thing. What is the most important thing?
    Selling your home for the absolute highest price and thereby netting the most money possible in your pocket, since it always the bottom line that really matters. Commission is not a liability or an expense it's a marketing tool. It can be like a powerful magnet or an irresistible lure that attracts agents who have potential buyers or it can be like a repellant that drives agents and their buyers away.

    Case in point, I just sold a home that had been on the MLS with a well known flat fee outfit that is so confident in their system of selling and their results are so good according to them they have to charge the seller and take their fee of $1000. up front unlike the professional realtors who invest their own money and time upfront and are only compensated after bringing an acceptable offer to the seller and being paid only after the home is sold. This home had been on the market for 40 days before the seller got fed up and terminated with this flat fee outfit.

    The seller then listed with me, I offered a bonus commission and through my negotiating skills and marketing strategy sold the home for $10,000 over the full list price in only 4 days. Compare these results with while the seller had it during the 40 days with the flat fee company the highest offer he received was from a buyer's agent and his buyer for $35,000 less than his asking price which he refused to accept.

    Which brings us to the question "Which is more important how much commission you offer or how much money you net?"

    Realtors who are skilled at what they do, don't need to charge less commission since they are worth whatever commission it is that they charge. Unfortunately there is a new breed of Realtor who are out for a fast buck, have no skills or strategy other than charging less commission and they make this of " working cheap" as their real estate platform.

Post a reply