From time to time we see posts regarding the brokerage fees that are asked to be negotiated down or why the rate should remain at whatever rate for whatever reason.
The business model in real estate is changing or has changed. Just like in most other types of businesses. With the advancements in technology (internet) and the cost of print adverstising, which is becoming a thing of the past; why would a seller expect not to negotiate the fee?
It is an agent's choice to work for a firm that has overhead expenses, franchise fees, desk fees, etc resulting in earning less than the amount they would pay if they simply represented themselves.
There are firms that can market a property with full service at a reduced rate still offering the buyer's agent minimally three percent. The news reports that the recession has changed the spending habits and lifestyles of many people. Could a prospective seller not appreciate paying a lower fee with a firm that dosn't have the overhead of the nationally known names? Really, is it the firm name that sells a property or the name of the individual agent?
Personally I believe that a percent of something is better than a 100% of nothing. With a property that is priced to sell, sellers that aren't presented a sense of false hope with an unrealistic list price, and effective marketing; can properties not be sold for a lesser brokerage fee?
Wouldn't one rather have a property that is in marketable condition and priced properly sell at a reduced rate than to have a similar listing with unreasonable sellers at an unrealistic price with a six percent fee?
This post is not intended to spark debate but just another view on the brokerage fee blogs.