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Consumer Reports - Reducing Commission

By David Slavin, ABR, SRES www.SellMyHouseDave.com

According to an article in the September 2008 issue of Consumer Reports, the percentages are too close to call. They surveyed the differences among the major real estate companies for overall performance and success in attracting buyers. They did find a difference between the companies when it comes to the willingness to negotiate the agents commission. Here are the results from most willing to negotiate commissions to the least willing:

77% RE/MAX
76% Independent Agents
70% Other companies
67% Keller Williams
67% Century 21
67% Prudential
64% Coldwell Banker

Posted by David Slavin, CDPE, ABR, SRES RE/MAX Grand on 10/04/2008 02:32 PM

Comments (14)

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14 Comments on Consumer Reports - Reducing Commission

OCT

2008

Hi Dave: I am not a fan of negotiating my commission. I have 20 years experience, work very hard, spend alot of time and money advertising and am very attentive to the needs of my clients. In this market I am increasing my fees to cover the extra services I have been providing. harford county maryland christian realtor REO expert

David - I am not a fan of negotiating commissions, however, if a seller agrees to a very aggressive listing price I might. But most that I have come into contact with want me to reduce my commission while they maintain their listing price on homes that haven't sold at that price before, often with 2 or 3 previous listings.

OCT

2008

I am 100% willing to negotiate.... and 99% of the time I don't change my commission....

This is an interesting list. I'm sort of surprised actually. I wouldn't think the percentage would be so high.

Hi David Thanks for commenting on my post. It is appreciated. This is an interesting post. We all have opinions on commissions but like everyone else..wish we could go there...but have to be very careful.....Isn't it funny how strict our regulations are and the banks get away with murder........ I mentioned in another comment a very professional excellent agent in our area had an answer negotiating a very low commission. " Something is better than nothing"

June - Since the banks are now getting bailed out, isn't it time for Realtors to get their "fair share" of the bailout too?

Trunda - I thought the same as you which is way I thought it would make a good post.

Tom - I agree with you. I always go in with an open mind.

I wonder if Consumer Reports would negotiate the price of thier magazine and how long they would stay in business.

Gene - That's funny. It reminds me of my satilite radio in my car. It came with 3 free months of service and then if I wanted to keep it I would need to subscribe. I didn't. They keep sending me notices to subscribe and the price keeps dropping. If I wait long enough I'm hoping they with activate for free again. I refuse to pay for radio.

OCT

2008

After 33 years I am disappointed that so many people have been willing to sacrifice fees for the sake of volume. We are in a WalMart mental frame of mind these days, Karen

OCT

2008

David, Shame on us for talking to Consumer Reports on or off the record. Could this have been misconstrued as a "are commissions negotiable" question???

NOV

2008

I don't know how they got their information.

On one level, it surprises me that the percentages are so high, but a quick look around our office and who I know is is pretty open to negotiating commission tells me that this is probably spot on. Personally, I rarely reduce commission. It has to be something special, like the guy that listed three properties with me on the same day. He got a lower rate IF and only if I had both sides of one of the sales.

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