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Real Estate Compensation - Alternatives to the Commission-Based Model (and yes, we still make a good living!)
Last weekend I posted a blog that generated lots of impassioned comments (I love it when that happens). The topic du weekend was the sacred cow of real estate - our compensation structure that pays us based on the price of the product we sell.
My firm belief is that there is very little correlation between the price of the product and the value of our service. In other words, my efforts on a $1M property are not worth 10 times more than my efforts on a $100,000 property (or conversely worth 1/10th on the lower-priced property). In fact, sometimes that $1M transaction is far easier than the $100,000 one... and sometimes... it's harder. But the degree of difficulty of the transaction is not simply a matter of the price; many other factors are involved. 
Some of my readers called me on my stance with an implied "Okay, Miss Smarty-Pantz, if you don't like the way it's done now, what's YOUR solution?"
Well, thanks for asking! I'm happy to share my thoughts on the matter (Really?)
First, let's talk about the difference between a Commission and Contingent Fee (they aren't the same thing!). A Contingent Fee is paid only if the ... more

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