This post was inspired by another member's question about the upward trend in the market. Although it is illegal to dictate or infer that there is a set price, (Price Fixing), for commission charged...it is apparently not illegal for a brokerage to advertise discounted commissions or rebates to Sellers or Buyers as long as these discounts are contractually agreed upon and any money coming back to a Buyer in a transaction is expressed on the HUD1, (in compliance with RESPA Real Estate Settlement Procedures Act).                                                              

When I graduated from real estate school about 12 1/2 years ago, I came out with NO experience, but a head full of grand ideas and some knowledge of how a real estate deal would theoretically work. It was time for me to choose a Broker to sponsor me, so I went to the Yellow Pages and found a name that I liked and felt would represent me and what I believe in. I found one. It was a small independent and not a franchise. I got hired on and then it was time for me to "Get me some listings!"

"OK, I graduated...where's my commission check?"

I completed most of my real estate eduction by correspondence and had the grandest time watching over 100 hours of VHS video tape lectures and reading along in my printed manual. Every time the video teacher would do a transaction example, he would use a 7% listing as his brokerage fee. So, naturally, I went out and got myself some of those 7% listings right away. I had no idea that other people weren't charging 7%. I had not heard anything about discounts, rebates, or incentives. I just brought in listings at 7% until MY BROKER asked me, "Lania, HOW are you getting these people to sign on at 7%?" I promptly answered that I would go to the appointment and tell the folks what I charged and what I would do for the money they paid me. I had not ONE client ask me for a discount or why I charged more than another company. They all happily signed on and I believe I did them all justice, (except for that one I couldn't sell because of the well water problem...)

Just kept pulling the rabbit out of my hat!!!

Now I own a small local brokerage and have a handful of agents. I use this example frequently to explain that an agent or broker should not AUTOMATICALLY get into the practice of discounting their services. It is further likely that if a real estate practitioner adapts the practice of discounting, it will likely become their usual practice, so why start?

Today I finished having one of my molars crowned. There were some cheaper dentists I could have gone to, but I chose the one with 53 excellent reviews on DR. OOGLE because I am a scaredy cat about dentists. I got excellent service and he did wonderful work and I don't feel bad having paid more for a higher degree of comfort. I COULD have found hundreds of dentists to do it cheaper, but not better...

I love my 3,000.00 molar...and I'm worth it! (Root Canal and Porcelain Crown, BTW)

DON'T SELL YOURSELF SHORT! Have a wonderful day!