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Commission: My Beef Of The Week

By
Real Estate Sales Representative

 

My beef of the week. I know I have many of them but this one is on the Top. How many Realtors want to work their tails off and in the end receive a low commission? Not many I am sure, I being one of them. I was so happy to see those fly by night realty companies close. You know the ones that offered 1 or 2%. I won't mention any names, you know who they are. In this market we have to fight the banks on short sales and foreclosures to receive our commissions we deserve.

 I have ran a crossed a few listing this week that are only paying out a low co-brokerage fees. That bugs me. Example: I show a development of homes to my client and he picks the one house that is giving the lowest split. Of course that is not his problem and he could care less, and I would still work hard to insure he got the house he wanted. But at the same time I am bugged. In regard, I know that there is no set price on commissions and it is our final decision on whether or not we take the listing. I also understand the rookie agents need leverage. They don't have the years of experience to back them during their listing presentations and when a seller comes to realize this, they negotiate the commission and the agent who is desperate for their first or second listing will agree to the commission rate.

 I think it is a good idea for new agents to work with more experienced agents in the beginning. There is no better training then hands on. Mentor ship programs are usually offered in many Reality firms today and I believe it would be a good investment for the rookies.  Let me know your thoughts.

Posted by

Michele Iannella, Realtor
soldit4them@gmail.com

Keller Williams realty

856-832-8033

Home services

Show All Comments Sort:
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

People will figure out eventually that they get what they pay for...or the alternative is that the discouters supply more service for less money....oh not...it's free enterprise...but the truth is nothing is free...

Apr 17, 2009 12:12 AM
Cherry Wings Realty
Cherry Wings Realty - Traverse City, MI
Your Traverse City Michigan Realtor

Michele:

 

I would be careful speaking to this subject.  You are on the border of violating anti-trust laws.  Perhaps this topic is best left out of a chat area.

Apr 17, 2009 12:23 AM
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

I was just thinking what Michele wrote.  Touchy touchy subject. 

Apr 17, 2009 12:27 AM
Robert Rauf
CMG Home Loans - Toms River, NJ

Hi Michelle, in this market with multiple choices it certainly is an issue, but one that agents are NOT supposed to look at when showing a home. I have heard the subject discussed MANY times over the past 20+ years I have been in our crazy business!  PS: why is your pic so tiny?

Apr 17, 2009 12:52 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Michelle, we work for the best interest of the clients and we should show all properties.  If you have a minimum fee that you want to set, be up front with your clients and sign an agreement that they will pay the difference.

Apr 17, 2009 01:51 AM