I know that discussing commission rates can get us in trouble so I have adjusted this one into "ranges" so as not to get in trouble for Price Fixing or being in violation of the Sherman Anti Trust Act. It is a shame that it is so difficult to talk about this topic so I have had difficulty finding good reliable data to base my commission schedules on.
Therefore, here is a "draft" of what I am thinking. I give credit to one of my past clients since during our initial interview when I was explaining the benefits of an Idaho Housing and Finance Administration loan program called the "IQ" loan, he said ... "Do I have to take a test?"
Actually that time, the IQ stood for Interest Qualifier (kind of a temporary buy down program) not Inteligence Quotient, but it was enough to get me thinking about a new commission schedule:
. . . "Do I have to take a test"?
- IQ under 80 = 10%+ (since I will have to explain things three separate ways and hope they finally get it);
- IQ 81-90 = 8-9% (since I have to explain at least twice and they will still need a second opinion before they make a decision);
- IQ 91-110 = 5-7% (Regular commissions for regular people);
- IQ 111-130 = 4-6% (a small discount since they "get it");
- IQ 131-160 = 6-8% (a small premium since they "think" they "get it";
- IQ 161+ = 10%+ (a premium for making me feel I am in the first category)!
For anyone that thinks I have crossed the line you have the option of picking if you are in the first or the last category since obviously my opinion isn't valid anyway (grin).
Have a great day!
Jim Paulson, CRS, GRI, EPRO
Owner/Broker - Progressive Realty Corporation
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