Home : Blogs : Deb Brooks, Lake Livingston Real Estate : Lake Livingston Real Estate, Deb Brooks

Are You Walking A Tight Rope?

The Real Estate business is definitely changing.

When you're searching your MLS have you noticed that the compensation split is being lowered too many times? Obviously there can be no price fixing...so we're all free to sell homes at whatever rate we choose. Right? DSCN5283.jpg tight rope waler image by twinone75

My question is...

"Why are we lowering the rates?"

For heavens sake it's more difficult to sell a house today than we've ever known it to be! It's more difficult to find qualified buyers. It's more difficult to attain financing. It's more difficult to remain within the guidelines of our FNMA/FHA/VA sources and here we are LOWERING THE COMPENSATION?????

WHAT'S WITH THAT?

If we take the stance that our services, knowledge, advertising sources, E&O insurance, license and experience are important....

SHOULDN'T OUR RATES BE GOING UP?

We should question strongly the Discount Brokers. Are they diminishing our true value?

Are you walking a tight rope by lowering the value of Real Estate Professionals position?

Where will it end?

Deb

Brooks Prime Properties

Specializing in Lake Properties

Lake Livingston Texas

936-295-0005

Posted by Deb Brooks, Lake Livingston Real Estate on 06/20/2009 01:42 PM

Comments (6)

lake livingston real estate, lake livingston homes, deb brooks

Originally posted at: Deb's Lake Livingston Real Estate & Stuff! : Are You Walking A Tight Rope?

Post is included in group: The Art Of Marketing You
Post is included in group: Diary of a Realtor
Post is included in group: Dedicated Bloggers
Post is included in group: Club Chaos
Post is included in group: Active Rain Addicts

6 Comments on Are You Walking A Tight Rope?

JUN

Deb - I guess we've been lucky so far and the splits have been the usual - the only ones that commonly look fishy are the short sales when they have the completely non comittal "commission to be determined by lender". This makes us work much harder to sell the 'normal' listings!

Brian.

Deb, good point that with more work you should be earning more per hour worked. It is supply and demand though, if others cut their rates that is your competition. Doesn't make a whole lot of sense I agree. Our buyer split has been pretty firm at 3% around here.

Good point Deb. And have no fear, rates will continue to slowly rise. They cant stay at a low 5% rate for ever. Hopefully they dont sky rocket though.

JUN

Deb: Although I won't mention any percentages here... I cannot remember anything different about brokerage percentage splits in a very long time. Although, obviously, everything is negotiable, things appear to be quite competitive.

And, by the way... as far as any "discount brokers" are concerned... it's whatever the market will bear. They are free to use whatever marketing strategy they find useful. If they find an innovative way to earn a living, and still provide great service... good for them !

SEP

I question the same thing Deb. Frequently, the commission is broken down even further by each $100,000 of a sale. Doesn't that smack a bit of enticing a buyer's agent to bargain with a bit less fervor?

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?