So, what do you do to justify your high commission?

Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

Hi folks. I have been reading and participating in a very heated debate over at the BloodhoundBlog today. It seems, a consumer has chimed in, and is asking us to explain what it is we do, to justify our high commissions, when the consumer is now able to find all the information they need, to buy or sell a house, on the Internet. Well, if you take the time to read the discourse over at the BloodhoundBlog, you will see that this debate definitely took a turn for the worse. Mr. Candybags is slamming Reel-toors (his term)and Realtors are slamming Mr. Candybags. Amusing and sad at the same time. Amusing because I love reading a good slam fest and sad to watch Realtors avoid answering the question.

So let me ask it again here. What do you do, to sell a property, that justifies receiving a x%  commission? Why would the consumer want to hire you and pay your fee, when they can find all the information they need on the Internet (disintermediation)? What can you say to justify your commission?

Well folks I am here to tell you, you best be prepared to answer this question. And you best have a better answer prepared than your 25 step marketing plan and access to the MLS. This will not cut it in this day of disintermediation and discount, web based, Real Estate agencies. If all you can bring to the table is your marketing plan you will find yourself either out of business or drastically reducing your commission to be able to compete in this market.

So, what do we do? Well, here's what I do. I build value in something that the consumer cannot access over the Internet. "Broker Bryant, that's pretty vague, can you expand upon that?" Of course. I thought you would never ask.

First, all people want to feel good about themselves and their decisions. You can provide that. You can help people decipher all the information that they have available. You can help them apply this information to their situation. Together, you and the consumer can come up with a game plan that will help solve their problem. You can be a trusted advisor.

Secondly, you can be a calming force. Selling or purchasing a home can be one of the most stressful things a person ever goes through. You can remain calm and help them through this. This can be achieved by constant communication and by constantly being there for them when they need to be reminded of why they are selling or buying. When the going gets tough, you can be there for them. You can let them vent their frustrations, on you, without taking offense. When they are all done, you can get them to return their focus, on the end result.

Thirdly, you can be their friend. You can have honest and sincere, care and concern about their situation. You can lead them down the right path without placing your commission in first position. You can make them and their situation feel important to you. This cannot be faked. It must be genuine care and concern. Folks can, tell the difference.

My point here, is to understand that folks' emotional needs cannot be satisfied over the Internet. As Realtors, we need to position ourselves, to be the one person, that will take the time to make sure that their emotional needs are met. If you can achieve this, I can assure you, that your business will take off and your services will be in high demand. And the consumer will be more than willing to pay the price for this kind of service. Quit trying to sell them something, they can get over the Internet, for less money.

So that's it. Broker Bryant's crash course on overcoming disintermediation. Did I make you feel good? Did I give you a solution to the problem? Did I present it in a calm and informative manner? If so, I will mail you my bill. I take Master Card, Visa and Amex.

"Hey TLW, the mall opens at 10:00 and I got me some more of that money coming in. Have fun and buy me something nice. I wear JUMBO."

So, what do you do to justify your high commission?

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***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas


 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

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Comments (148)

"The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

"Alex"...I am curious. How can you be a Realtor and not know that you need a license to do the mortgages? I mean they teach us that in our licensing class. I find this odd...TLW...ROAR!

Dec 02, 2006 05:50 AM
I answered candy bags question on bloodhound. I laid out most of the fees. I think I covered the big ones. I never thought real estate agents were hated like this. I became one because I had terrific agents and I love working with people. It's so sad that we get hung up on, door slammed in our faces, and people calling us everything under the sun. I would honestly think they were justified if we indeed did nothing. People critcize things before they even become informed. They can look up the costs of advertising. It's not something that a person is unable to find. I didn't even include the brokerage advertising. I just wish people had respect for one another like they used to. May be I was born in the wrong time. 
Dec 13, 2006 08:41 AM
Ken Cook
Content, coding, marketing, host. - Marietta, GA
Content Marketer/Creator

The Comments Policy from BloodhoundBlog says something that is a little disturbing to me. It essentially says what you read here may likely tick you off and when it does be careful about your response (we can say what we want but you cannot). I've never even heard of that blog until your post but since then I've read a good bit and I do say that it seems for the most part to take a direction such as to tell the readership what idiots they must be and they should bow in the presences of such greatness. It certainly does not go for all the contributors nor all of their postings but, in my opinion, that is the type of blog which would do more harm than good to our industry.

Comments policy: Everyone disagrees with us about something, and we welcome this: It’s how we learn. We encourage a free and spirited debate about the issues we raise here. We police comments with a very light hand, deleting comments only for extreme obscenity, flame-baiting, plagiarism or copyright infringement (a fair-use quotation with a link is fine).

Dec 30, 2006 11:14 AM
Maureen Francis & Dmitry Koublitsky
Coldwell Banker Weir Manuel - Bloomfield Hills, MI
Coldwell Banker Weir Manuel
Bryant, congratulations on having one of the most memorable posts of 2006!
Jan 03, 2007 10:57 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Congratulations Bryant , on having one of the best posts in Active Rain's  first year! So very proud to know you through Active Rain!


Jan 03, 2007 12:00 PM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Thanks Margaret and Maureen, But truly it's not the post it's the comments that really made this memorable. The Rainers really stepped up to the plate to turn Candybags around. I thought it was awesome!!!
Jan 03, 2007 12:10 PM
"The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL
I will be back with your present darlin. I want it to be special. Must shop. SVW...TLW...ROAR!
Jan 03, 2007 02:47 PM
Maureen Francis & Dmitry Koublitsky
Coldwell Banker Weir Manuel - Bloomfield Hills, MI
Coldwell Banker Weir Manuel
Jan 03, 2007 02:58 PM
Kaye Thomas
Real Estate West - Manhattan Beach, CA
e-PRO, Manhattan Beach CA


Congratulations... this was an amazing post.. I predict that your post on Compensation for Performance will be another one that will find the whole community reading and commenting.

Way to Go!!!

Jan 03, 2007 03:21 PM
"The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL

Present done...But not here...Wink. Wink. TLW...ROAR!

Jan 04, 2007 08:09 AM
ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA
Just checking the all time high posts.  Over on Mercer Island, we have the highest priced home in the Country at $40,000,000.  That's a lot to justify.
Feb 17, 2007 05:11 PM
Alexander Harb
Knights Investing - Mesquite, TX
Dallas, Texas Real Estate Investing


They may have taught that but I did not remember as I took the class way back in 1997..... AND as I stated in my comment above, the postcard DID say I could get paid to originate the loan.... so, not remembering what the law was AND trusting what they said on the postcard...I investigated it.....and found out what the REAL DEAL was.....

Did you have a good Mortgage company to recomend? 

Feb 18, 2007 06:54 AM
Sarah Cooper
Real Estate Shows - Hurricane, WV

WHOA.  I'm glad you sent me here!!  Send me that bill! 

This really speaks to the way I like to help people.  I don't think I've ever heard anyone else give this type of caring service as a reason to justify a commission -- and yet as a client I would find it to be far more valuable than any technology. 

Tell your Lovely Wife to buy something nice with my payment!  ;o)

May 14, 2007 11:30 AM
"The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW.
President-Tutas Towne Realty, Inc. - Kissimmee, FL


It's all FREE.

My "Daughters" all get FREE on line real estate courses :)

If people like you keep reading these we can change the very nature of the way other's in this industry conduct themselves in this business :)


May 14, 2007 11:44 AM
Sarah Cooper
Real Estate Shows - Hurricane, WV
Oooh, and a Family Discount!!  I am one lucky girl indeed!
May 14, 2007 08:51 PM
Beach Report
St. Augustine Reports - Saint Augustine, FL

I don't think 99% of agents can justify their commission.

Aug 30, 2008 10:43 AM
Irene Kennedy Realtor® in Northwestern NJ
Weichert - Lopatcong, NJ

Happy to report that I'm still taking 6% listings - something very few agents in my office manage at all, much less regularly. Now that I've read this older posts, maybe I'll land more at 7%...

Aug 04, 2009 09:54 AM
Lorraine or Loretta Kratz
Crescent Moon Realty, Inc. & Land N Sea Auctions. - San Marcos, CA
Certified Negotiation Consultants


I reviewed some of the comments that have been made, and it is so interesting to see the response that you have received. There are three points that are hard to put a price tag on.

  1. The intangible--which could be your personality to your ability to just listen.
  2. Experience
  3. Intrinsic value.
Mar 29, 2010 03:05 AM
William James Walton Sr.
WEICHERT, REALTORS® - Briotti Group - Waterbury, CT
Greater Waterbury Real Estate

Wow. How to answer a simple question really shouldn't have turned into anything else. Byrant, I'm glad that you pointed this out recently, and it is an eye-opened, and an education for those of us who have been asked that question and didn't know how to answer it.

Jan 08, 2011 08:27 AM
Jim McCormack
Nashville Short Sale Specialist - Jim McCormack - Edge Advantage Realty, LLC - 615-784-EDGE (3343) - Murfreesboro, TN
Nashville Short Sale REALTOR - Stop Foreclosure

Gee, I don't know.  What does an oncologist do?  Don't they just administer cancer drugs that were created by a drug company?  Couldn't the cancer patient just Google "cancer drugs" and find what drug works best on their type of cancer and then pay a nurse to administer the drugs....?  The problem in real estate is that there are too many incompetent Realtors that genuinely make the public think they could do a better job because in reality they probably could.  I know from personal experience that I close deals that the sellers never could.  They just do not have my level of experience in negotiating, contract writing (yes there are ways to write the contract that give your client an advantage in the sale), BS detection, creative problem solving, etc.  If you are a Realtor who has these skills then you deserve to be paid well.  If you don't have these skills that you are either an REO listing agent or should be out of the business.

Jan 09, 2011 03:44 PM

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