I have heard at least 100 times that in today's market, agents aren't struggling with getting their base rate commission.  Yet, MSNBC and Consumer reports published the following story -

Home sellers can haggle over commissions - Consumer Reports study showed 71 percent who bargained got lower rates - http://www.msnbc.msn.com/id/26014600/

Among the results that the article states, "Consumer Reports found few differences among the major real-estate companies in overall performance. There were slight differences in companies' willingness to negotiate on commissions when asked, however."

Before you get high and mighty and say "not at my company" look at who was represented -

Here's the percentage of sellers who got lower commissions from certain companies from a study by Consumer Reports:

77 percent - RE/MAX Realty
76 percent - Independent agents
70 percent - Other companies
67 percent - Century 21 Real Estate
67 percent - Keller Williams Realty
67 percent - Prudential
64 percent - Coldwell Banker

Even, CB, doing the best in the study, gave up their commission 6.4 times out of every ten.

We have a serious value proposition issue.  There seems to be a divide between what we think we shoul charge (our base rate) and what we negotiate down to (what the consumer thinks is fair).

Part of the value challenge is that you, in your current office, sit next to (or in close proximity) to someone who delivers less than you, yet charges the same or more.  Which only reduced the future value credibility for the industry. In fact, the guy who has been licensed for 2 weeks is just as likely to charge the same rate as those who have been practicing for 25 years.  It's not fair, it's not right and it is not in the consumer's best interest.  No wonder there are more than 1 million pages of consumer blogs dedicated to "I Hate Realtors."  That doesn't represent those that are unhappy, but those who are pissed.

An to make matters worse, the gatekeepers of trust, the brokers and brands, don't have any incentive to call the practice out - I mean seriously, you'll never see an ad by CB saying "we have 110,000 agents, but we wanted to give you the names of the 30,000 that are worth anything." They make the distinction internally; they allow their "A" team, or certified agents to handle the relocation business.  But to the consumer, not a word is mentioned.   

Our industry is changing, and we think that if we just hold on and close our eyes the issues will go away.  I have heard of hundreds of solutions, but very few that make much sense to both consumer and professional.  I am all for giving value and have long held to the practice of refunding every cent that a client feels I didn't earn.   It's high time we take a long look in the mirror, get ego and pride out of the way and start addressing the very real problems and issues that face us as real estate professionals. 

"If you don't change, reality in the end forces that change upon you."
- Stuart Wilde

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If you are a Realtor® who enjoys working with families, have been licensed for at least three (3) years and have lived in the area you serve for at least three (3) years, we invite you to APPLY to become a PRC Council Member.

***Parent Relocation Council, Inc. is looking for Regional Directors for Utah, Texas and Oregon, if you know of anyone who has a great reputation within the industry, has been full time in the real estate industry for more than 3 years and has leadership qualities please let us know at chris@parentrelocationcouncil.org***