Do You Want an Agent to Get Paid Even If He Doesn't Sell Your House?

 I get paid vacations and medical. I pay for both or they come after me. The company of which you speak pays all their promises with investor money Tammie White... 

Tammie White there are different models in our industry! However, what sellers should care for is - their home is marketed well or not - or even a step further, is it sold or not.

We work hard to get paid - so yes, the sellers should trust us - we don't get paid until the home is sold!

Tammie - Many sellers like the idea that we're all in the same boat, paid when they are.

Great timing.  I was just approached by that nameless company last week.  They are just entering our area and I still cannot figure out how their agents make so much money and do so little.  

I suppose it's a business model. I guess the question is whether this company ends up firing the non-productive agents. Of course, there's not as much upside potential on income for salaried agents as there is for us.

Tammie, I hate to lead with that too, but I've had one too many buyer after they wrote an offer with someone else try to claim "oh, I didn't know!". 

I am so tired of the "Carpet Baggers" coming in for the kill.... I hope they choke on this concept.

Tammie, I think the promise of a salary will attract some agents and the low fee angle will attract sellers. They're advertising pretty heavily here on TV in my area. Agents and sellers need to read between the lines though. Well if it sounds to good to be true. . .

There is enough for all...but mankind will dicker and disagree...Petty in petty out

Well Tammie White , great blog. It's a business model, and I would not be so fast on passing judgment. I don't really see a problem - it has merits. Does a doctor get paid even if you don't feel better? Does an attorney get paid even if the results are not as expected or if you lose your case in court?  Think about it... 

Tammie, it would seem that they go after high end properties, right? So the 1.5% is just for listing the property? Do they list properties in REALTRACS? Am I correct that the Listing Agent must be a member of NAR, TAR and local Association? Do they co-op or not? Do they use that same percentage for Buyer's agent?

Are their telemarketers licensed agents in Tennessee? Have you seen a copy of their listing agreement? How many REALTORS® are beginning to feel like the Little Red Hen?

Forgive me, I try to compare things to being a pilot a lot of the times, but when I was a pilot I never got paid a salary. I got paid for what I worked, when I worked. Only when those engines were turning and brakes released did I start earning a dollar (unless of course I was a "reserve" pilot where I got paid very little to sit and wait for the chance to fly in case a "line" pilot got sick).

Anyway, my point being, I think most jobs have the set-up of getting paid AFTER you do the work, much like a broker. Most people get paid every two weeks, AFTER they worked a month. Most people don't get paid before the work is even begun, except of course some lawyers and maybe other industries I can't think of right now :-). 

To be a "traditional" broker, you have to love the work I think, because there is a chance you may never be paid! Being paid a salary to be a broker just seems to water down the effort. If I truly get paid no matter what level of service I provide, the average person may do just what it takes to get by, and nothing more. I don't know, am I wrong in this assumption?

Is professionalism lost when it comes down to a guarantee of pay no matter what level of service I provide? Is that indeed how the unnamed company's model works? Broker A is a true professional and puts all his/her effort into the deal, Broker B puts the bear minimum, but both get paid the same? How does the bonus structure work? Is it based on customer testimonials only, or employee incentives based on company income over a quarter, or is each individual employee (broker) graded and evaluated by their managing broker?

See I don't know all the truths about the unnamed company, so I cannot make a fair comparison. All I can say is, I love the work I do, I love to help people, and I don't expect to get paid until the job is done. And if I don't get paid because I get burned? Well that inevitably is going to happen from time to time, but I still subscribe to the adage that most people are naturally good in nature. Just my two cents. :-)

Ok, am I the only one here who is very uncomfortable with the fact that real estate commissions are being discussed in a real estate forum??    Not withstanding the fact that many of us are REALTORS who abide by a Code of Ethics,  I also believe you are walking a very thin line of misleading the public as to the other firm's practices (look at my credentials if you doubt that I know what I am talking about).  

This firm that you reference may be laughing all the way to the bank pretty soon.  There is a landmark case in MA that could change the way that real estate is practiced in the United States.  It centers on whether real estate agents are in fact independent contractors.  One of the big national firms has already stopped calling their agents "vice presidents" and started calling them "premier agents" in the hope that IC safe-harbor will continue.  However, if the Supreme Judicial Court rules that real estate agents are not independent contractors, you will certainly see NAR trying trying to plug the dyke in every single state, but it will be too late.  Meanwhile, your friends that rhyme with "Beta" will be having the last laugh.  So please don't be so smug.

yea - shouldn't talk about commission rates in a real estate blog.  big no no!

Many years ago I worked for a company that converted all it's sales people including me from straight commission to salary and year end bonuses. The first year sales dropped about 8% so they eliminated a sales position to make up for the loss in sales. I quickly realized that the new management had no background in professional sales and I left to open my own business shortly afterwards.

Tammy I remember when the owner of that company sat at a podium with six other Internet Players and they swore to get rid of Real Estate Agents that was about 15+ years ago.....then Realtors woke up and did things for trying to survive...this guy did not forget that...he then became an insider......he started the brokerage.....then he tried to bring in Rating Real Estate agents that was his angle to try to kill the industry.... that did not work.....then he tried being a discount broker....that did not work...he keeps trying so we can not be complacent.....Just on a side note he will try everything...generally he could not get his foothold into the Major Markets, like NYC, Boston & LA...so now he is trying the suburbs and country....he is bad for the industry... the only Good thing he has is excellent Internet Technology, most of my buyers use it and then call me.... FYI you can not have a phone answer, then a scheduler and someone else showing the property and someone else negotiating...seriously...Endre

The post is very interesting and so are the comment following. I think the key is educating the public on what they get for their investment. I think the article does a great job explaining it.