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Your commission: the best thank-you gift of all?

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Real Estate Professional | 02 Mar 2015, 09:10 AM Agree 0
As sales reps increasingly compete with one another for business, some agents are giving back to their clients – using their own commissions.
  • Kevin Andrew | 02 Mar 2015, 11:44 AM Agree 0
    maybe we should all work for free and have lots of happy clients/friends. This is a fiercely competitive industry. Offering and advertising comm kickbacks/discounts on the buying side is foolish. This will spread amongst the weak and in time affect all of us. Try coming up with professional innovative marketing that buyers and sellers see the value in rather than giving away commission to compete with your colleagues.
  • | 02 Mar 2015, 11:46 AM Agree 0
    I'm curious. Do they also provide a commission reduction for doing the second transaction or is this in lieu of? Many sales reps do reduce the listing commission if the seller is also buying. I would like to know if the ones advertising this 15% are doing both. Also, is this considered an inducement?

    Cathy Burton, Broker
    Coldwell Banker Coburn Realty
    Ottawa
  • Greg R | 02 Mar 2015, 12:59 PM Agree 0
    Been there, done that. I would hope that because Ive done such a great job for my clients, they would give me an extra 15%, but we know that aint going to happen. The public that caters to those agents because of the low commissions being offered, or because they've been lured in by the promise of 'kickbacks" rarely employ the same agent again, or rarely give a referral, because they are in it for whatever they
    can get out of it, and at the end of the day so does the the relationship. Desperate discounters never last in the business long enough to get a repeat customer anyways. Having said that, should kickbacks become common enough, then it becomes the expectation. I'll never forget the client who, despite receiving excellent service, sent me an email wondering why she didn't get a dinner after all was said and done, because her friend did, and so that became her expectation.
  • MonAmi | 02 Mar 2015, 01:07 PM Agree 0
    I believe that The Real Estate Council including the Real estate Boards and CREA should stop charging fees to Real Estate Reps who actually take time to educate themselves and pay lots of fees to the Real Estate Police and other organizations> saying thus: I mean it because if everybody can come in to the business and charge what they want as commissions and even rebate customers why do we need regulators. I believe that we as agents are only filling the pockets of the regulators who are allowing a lot of slackness in the business. We should all have a standardized commission fee to charge clients because when we charge different fees it is competition yes but what happen to those people that just join th Business. They wont make any money because what little the make will go to paying fees and dues. Think about it. An agent charge 1% commission on a property for $500,000 will receive a gross of $5,000 then from this if let's say at 80% commission rate. Fe receives $,000 less Franchise fees, Admin charges, other charges, etc.. and on top of that he has to pay expenses for Gas, Advertising, and more. What does that agent is left with. Maybe less that $3,000. How many deals must that agent close to make a good living? So what will happen to that agent when people are charging less commission and even rebating clients. This is nonsense. RECO SHOULD PUT A STOP TO THIS PRACTICE AND STANDARDIZE THE COMMISSION RATES, maybe step process. The higher the value of property the lower the rate. That would encourage everyone. When you look at CMHC.
  • Dave | 02 Mar 2015, 01:21 PM Agree 0
    The commission paid out to a co-operating broker is decided by the listing brokerage. This has always been a fact. The commission comes out of the proceeds of the sale of the property from the seller. If there are to be any rebates they should go back to the seller not to the co-operating brokerage. Why should a buyer be entitled to a rebate when the realtors service is basically free until a sale has closed. I consider this to be a bribe to attract clients and should be in the same category as a "Bird Dog Fee"
  • | 02 Mar 2015, 01:50 PM Agree 0
    I am sure that discounters never ever feel they are worth the commissions they are paid. For the past 12 years I have not offered any discount and have never lost a listing or buyer due to this practise. If you sell your abilities properly and are absolutely confident your clients are all getting the best the industry has to offer they never ever think of a reduction. When clients ask me if commission are negotiable I say absolutely, I normally charge 7% on the first $100,000. and 3% on the balance but we can do 8% and 4% but your home presents itself well so I do not think we need to offer a bonus to get it sold. I see so many Agents cheeping out with poor feature sheets, very few pictures, no virtual tour or staging and I really think they are out of line asking for as much commission as a full service dedicated professional.
    Ken Lamb
    Calgary
  • | 02 Mar 2015, 02:11 PM Agree 0
    Ridiculous
  • Paul Vallis | 02 Mar 2015, 02:34 PM Agree 1
    I don't have a problem with someone giving back a part of their own commission. I do have a problem with a brokerage that does nothing more than refer a buyer to an agent and takes a larger cut for themselves after providing no service to the client. I believe that this does nothing more than add cost to an already high cost to the seller.

  • Gary Chambers | 02 Mar 2015, 02:38 PM Agree 0
    Choose to be professional or just someone trying to grab the crumbs from the professionals. I have never once received a "Kick Back" nor a dinner gift from my doctor, dentist, lawyer or even plumber. Why do some real estate agents think so little of our profession that they fell they have to give away their hard earned money? There are discount brokers who rely on the fact that they can sell their discounted clients into homes listed with Professional REALTORS® who's clients are willing to pay a reasonable commission rate for the services provided. If all of us should ever adapt their rates, they themselves would be out of business. In most cases, you see that these discount brokerages, who give a kick back to their buyers, stipulate in advance what the minimum commission rate has to be before they do, in fact, receive that precious kick back. But that is the free market, and if someone is willing to give up the only time they have for the smallest return, then so be it.

    Gary Chambers
    Associate Broker/ Co-Owner
    Century 21 Trident Realty Ltd.
  • Commission Wars | 02 Mar 2015, 03:16 PM Agree 0
    All these cry babies saying they would have too work harder if there is competition/lower fees!! Realtor is worth $1,000-$2,000 tops per transaction for being a tour guide /taxi service. Sounds like most if these agents went to a seminar and were told 'sell a home and you will make 20,000 plus for being a tour guide '....no wonder they all flock to the industry...you read about these money making schemes that sound to good to be true. I have used a flat rate service and payed 1,000 and the results were no different than when I used a agent who charged 5%....both did a few forms,mls ,waitied for a another agent to view and bring a offer .than they checked resales for 5 minutes and held out for a number close...genius!! Time for realtors to work for a wage that reflects a industry that doesn't require a HIGH SCHOOL DIPLOMA

    Commission Wars!!

    Agents brought us price wars it is time to give them back what they created with all that skill!!
  • Tom S | 02 Mar 2015, 04:50 PM Agree 0
    You must be referring to that "utility" company that can't even deliver reliable service to their own clientele, let alone Real Estate buyers and sellers.
  • Tom S | 02 Mar 2015, 05:02 PM Agree 1
    Dear Commission Wars,

    Every time someone talks about their bad experience with a Real Estate agent, I always take the time to investigate what had happened. Somehow, there is always correlation between the quality of service and commissions paid.

    I am truly sorry that you never received Real Estate services of the higher quality than "tour guide/taxi services". Is that because you never choose your Realtor wisely?

    Do yourself a favor, contact a reputable Realtor on your next occasion and then share your experience with us.



  • Dinosaurs | 02 Mar 2015, 06:38 PM Agree 0
    Never had a bad experience but did not see a single difference in service. I heard the dance my service is better!!

    You shoot for sales and listings based on previous sales posted on ur monopoly of information. Sounds like a high school project!!!
    All these agents paying fees to keep their license is fuel for the lawyers to hold onto the monopoly

    Think commission wars is a great idea. Realtors are becoming a dinosaur!!
  • Tom S | 03 Mar 2015, 12:36 PM Agree 0
    About 10 or 11 years ago someone said car sales people would become obsolete because "the Internet was there" and "people would not go to dealerships in person to see and purchase cars".

    A decade later, dealerships are still running the show and successful car sales people are making 6-digit income.

    Good luck.
  • PoeticLicense | 03 Mar 2015, 12:45 PM Agree 0
    In my 25th year as a full-time real estate broker I am perplexed with the vitriol and nastiness directed at real estate agents. I read once that every time I sell a home, I keep 50 people employed, from real estate lawyers, movers, handymen, etc.... and it baffles my brains how come all the other professionals are worth their pay, and are entitled to a paycheque which no one asks to cut, but not me, the Realtor! For some reason I am not viewed as bringing anything to the table! Really? I saved a couple, Buyers, $15,000 in the home they bought. That's $15,000 they could not have "googled". That's because I bring superb negotiation skills to the table: I trained, I studied, I worked very hard to get to this place of supreme confidence, of managing Sellers and Buyers' expectations, of guiding them to make the right choice for themselves.
    I do agree wholeheartedly that you do "get what you pay for" in life. The situation we are in is exacerbated by the following: there were 19,000 TREB members when I started in 1990 and there are about 42,000 now - which means there are thousands and thousands of Realtors that have no idea what value they bring to the table, hence the cutting.
    The other reason is that the typical Seller or Buyer has no idea what can go wrong in a real estate transaction. In my listing presentation I have a section called "The 32 types of turbulence we could run into" such as happened to my Seller client when on closing date with her moving truck getting loaded outside, she was informed by her lawyer that the deal was not closing as the bank discovered a last-minute judgement against the Buyer and mortgage funds were denied... Where would that discount agent be at this point? On a beach in Hawaii?
    I also make a clear distinction between a 'fiduciary agent' and a 'functionary agent' and I often say the my profession is not unlike that of a pilot, or even a doctor, lawyer, accountant: often you don't know how skilled and great they are until things go wrong. Problem is, with an airplane the passenger knows the value the pilot brings to the table. It's time RECO, OREA and other governing agencies truly educate the consumer about what an experienced Realtor, one that is constantly updating my training, knowledge and skills gets accomplished when it comes to the average person's largest ticket item purchase or sale.
  • $1,000 transactions | 03 Mar 2015, 02:19 PM Agree 0
    nobody is worth 20,000-50,000 plus no matter how skilled they are in a field that is basically a tour guide/taxi service...they brag how they saved someone money once ..isn't hat part of ur obligations to do that?? of course someone who charges 1,000 doesn't have that knowledge?? that is dinasour talk...not one agent has ever justified their model is worth the fees they charge...THE PRICE OF HOME WENT UP AND THE VALUE OF REALTORS HAVE NOT CHANGED ..more their value has went down..

    Commission Wars!!! Stop being a cry baby that u r being attacked...the writing is on the walls youj are using a monopoly ..if u dodn't have that ur fees would plummet....
  • TraceyS | 03 Mar 2015, 02:32 PM Agree 0
    I'm sorry you feel that way. Lets use your logic..
    If we closed a house every Friday I suppose we could feed our children from this job but we don't.
    Sometimes we work for 90 days to sell a house
    90 days is 12 weeks give or take at 1000.00 a trade we would be getting paid 83.00 a week!
    We are never off work and provide protection of your biggest asset. Not to mention what we have to pay out of pocket too sell your house! 1000.00 to 2000.00 a trade makes no sense!
    everyone thinks everyone else makes too much money. I bet you don't think you're overpaid but I guarantee to you somebody things you are!
  • Commission wars | 03 Mar 2015, 02:49 PM Agree 0
    More cry babies...tell them to stop infomercial the glory of being a agent and you will be making 20,000-50,000?? ..need more agents who don't make money to pay fees,dues ,courses so they can fight the monopoly stranglehold..

    If they made it harder to become agent instead of a few courses you would have more homes to sell/list and you could charge 500-1000 which you would be able to make a living. All that greed is forcing the younger/not so lucky infomercial agents needing to scrape offers together to make a living.... Ego says be like me and charge my fees and you will be rich...thinking like presidential candidate in the US talked like that ..everyone should be rich..

    time for a reset...ego agents screwed themselves for these attacks..they couldn't care less about newer agents because e they want those fees to figh to keep their monopoly
  • Jealousy is unattractive! | 03 Mar 2015, 03:05 PM Agree 0
    Commision wars,

    Quit being so jealous my friend… It's not a good look. You're just a lonely, pathetic, disgruntled person who doesn't have the balls to improve your sad situation. Don't hate on the ones who get out there each day and make something of their lives, while genuinely helping others. You're the cry baby, get that through your thick, jealous skull.
  • We OPen the DOORS TOO | 03 Mar 2015, 03:42 PM Agree 0
    Commission wars on the greedy old agents who think they invented the wheel!!! Preying on the newer agents to feed their ego and pay to keep their bloated fees..... the mastery of looking up info on their Monopoly website to tell them what price to shoot for on listing and selling..exhausting...full tour of the even the closets with door openings included.
  • Tom S | 03 Mar 2015, 06:21 PM Agree 0
    Commission wars, Dinosaurs, We Open The Doors TOO, $1000 is the same troll who is trying get the conversation going and boost the google rating of this website.

    What he/she says doesn't make any sense.

    How many residential Realtors make $50,000 per transaction out there? Busy successful Realtors build their income on volume.

  • Greed | 03 Mar 2015, 06:33 PM Agree 0
    Tommy,

    What doesn't make sense when not one agent has justified their Ego commissions they think the are qualified to ask for....PRICES OF HOUSE WENT UP NOT the value of the agent. Why their is a Commission war ?? too many agents who were suckered into the infomercial of making easy money for a few courses and dues every year!!! the only people who benefited were the greedy ,ego ,bloated agents who are using all those agents fees,dues,course fees to pay the lawyers to keep their monopoly and hold onto their inflated ego/commissions..

    All these consumers buying their first home,scraping by to pay the bloated agent riding around like they invented the wheel..

    35000 agents and about 32000 suckers paying for the over inflated fees and legal costs for them to keep it..
  • Scraping by for the EGO | 03 Mar 2015, 06:54 PM Agree 0
    all these egos have left is to attack on a personal level!! their fight against the masses of agents who are footing their bloated fees and the lawyers fighting to keep those inflated fees.... is waking up these 32000 agents struggling along..paying fees ,dues and make very little ..they are seeing the light... all these models in all industries start breaking down,,,, stock brokers,travel agents ,taxi services..I am sure that is why the infomercial to become agent sounds inviting take a couple courses and make big money being a tour guide.

    32000 agents paying dues/fees helps those lawyers keep that model going

    3000 agents benefiting from all those agents scraping by... and they wonder why there is a COMMISSION WAR!!!??
  • Tom S | 03 Mar 2015, 07:30 PM Agree 0
    I think this troll ran out of ideas and writes his new messages by copying and pasting from the previous ones.

    Hey troll, ever heard of punctuation? School board didn't charge $50,000 for elementary school course, did it?
  • DOOR OPENER | 03 Mar 2015, 07:53 PM Agree 0
    Tom S judges grammar skills as his defense or desperation on justifying his claim on inventing the wheel ... Tom likes that 50,000 cost ...he must have got that from his presentation of tour guide/taxi service/door opener he charges... sounds like one of those peacocks walking around like he a master of negotiations!! I looked up resales and held out to that value in a supply and demand market.... Genius!!

    I see why they compare themselves to surgeons,engineers

    think the true negotiater is intimadting to Tommy that is why he goes after anything he feels superior to

  • A** OPENER | 03 Mar 2015, 08:01 PM Agree 0
    Tom said punctuation, not grammar.
  • commission wars | 03 Mar 2015, 08:10 PM Agree 0
    Find a agent who will give you the same mastery of negotiations for $1,000 per transaction
  • 5% | 03 Mar 2015, 09:57 PM Agree 0
    If you find one, please tell that agent he/she is a loser.

    Thank you in advance.
  • MORE AGENTS!!!!! | 04 Mar 2015, 08:14 AM Agree 0
    MORE AGENTS!!! MORE AGENTS!! this will push the commissions down!!! hopefully they keep promoting the dream of easy money and more agents sign up and than will really have COMMISSION WARS!!! YEAH!!!
  • Ontario Realtor | 04 Mar 2015, 11:41 PM Agree 0
    Oh boy, agents have an issue with comission cutting and brokerages offering incentives. Why? It is an open and competitive market and you can decide what you charge and I can decide what I charge, Yes, I am a realtor too and have been for many, many years! Competition Bureau will NOT allow a set fee and consumers have to have a choice, which they obviously do. Realtor, CommFree, FSBO are all choices and the more the better. I have been blessed over the years, had my clients return to me for their next move and referred a lot and I am sure it was not because I set a fee in stone and never went below but because I provided a service to be proud of and charged a fee that was comfortable for all involved. Get off your high horses some of you, prices went up over the years, as did your commissions. Give something back to your community, give something back to your clients. Great service is a must but being honest and open and generous goes a long way too!
    As for "More agents", "Door Opener" or whatever your name at the moment, not all realtors are the same and yet you paint us all with the same brush. We are more than what you describe and I am sure you know that but I can understand your criticism of the industry. That doesn't mean I agree with you as most of us, realtors, really work hard to earn our commissions but you have the freedom to express your opinion as you wish. Just hope you understand that clients choose their realtors and if a client doesn't like what you offer, he or she doesn't have to hire you! Same applies to the commission charged. Sellers have options! And they do exercise those options!
    Have a good day!
  • Door Opener | 05 Mar 2015, 06:21 PM Agree 0
    Ontario consumer:

    No one has justified their fees. HOuse prices have risen but what agents offer hasn't changed in 40 yrs. Prices of homes have rapidily risen but the value of the realtor hasn't added much. The supply and demand of housing is 101 economics....u are on a easy ride,got a big raise on the backs of consumers...why haven't Lawyers fees risen the same?? Now the infomercial for the added 20000 plus agents thinking they can ride the easy train too....but now the pie is limited and WE HAVE COMMISSIONS WARS BECAUSE THEY HAVE TO EAT....the old timers,veterans should have been less greedy and we wouldn't have the comfree etc!!!
  • Vijit Witane - Crimson Realty Point - Toronto | 09 Mar 2015, 09:57 AM Agree 0
    Giving back to the client should be a personal choice with the realtor. I always give back part of my commission to the client and the amount vary depending on the needs of the client. When I know they are first time home buyers on a tight budget, I give them back more. If they are repeat clients, I give them a better discount. I don't advertise that as I don't use the fact to attract clients and I don't stick to a fixed amount. Their are buyers whose first question to me is how much of my commission I am willing to give them if they work with me. I laugh at them and tell them to find someone else.
  • COMMISSION WARS | 10 Mar 2015, 02:27 PM Agree 0
    http://www.huffingtonpost.ca/2015/03/09/toronto-real-estate-data_n_6831824.html

    Great article!!
  • Anne | 15 Mar 2015, 07:06 PM Agree 0
    Does your doctor, dentist or lawyer give you a discount/gift for being their patient/client? Enough said.......
    Anne
  • Greed | 24 Mar 2015, 11:36 AM Agree 0
    All eventually falls apart with the greed of a few...
  • Agent who cares | 21 Sep 2016, 01:35 PM Agree 0
    I don't dropped my commission but I do gift at the end using an automated program called RedString (Canada) My clients get multiple touch points not just one gift and its worth 3 times what I pay! www.RedString.io

    I get a tonne of referrals as result of the genuine act of gratitude.

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