Commissions are too high, agents argue

by Olivia D'Orazio18 Nov 2014
The latest in the debate on commissions has some agents pointing the finger at their high-rolling counterparts, arguing sky-high payouts are overly opulent, not well-deserved.

“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 [and that] means we are less competent is a completely ignorant statement,” writes Robyn in the REP forum. “This is 2014 people! Times are changing and I advise you to hop on board. Greed will end your career.”

That’s a strong warning, but one that agents seem to increasingly be heeding. An anonymous forum commenter said he, too, believes that the current commission structure, whereby agents can walk away with $50,000 from one deal, is far out of whack.

“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,” he writes. “It has nothing to do with being a better negotiator.”

However, opposition to that view point is also plenty. Commenter Doug Best said clients who recognize value in their agents have no problem paying whatever commission that agent charges.

“If you don't feel your representation is worth what others are charging, you don't feel you add value or you’re 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,” Best wrote. “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.”

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