Giving Away 20-50% Of Your Income To Your Broker Is So Last Century!
In the era of reduced real estate commission real estate agents are looking to maximize their net income on each sale.
With the advent of the internet and new high tech, low cost business models the average commission has fallen from 7% last century to 5.1% as of 2005. While the soft real market that began in 2006 has slowed commission reduction the downward pressure is sure begin anew soon.
Fewer sales will force agents to negotiate a lower commission to maintain their market share. Couple that with the harsh reality that property values have actually fallen in most markets since 2005 and the pressure is magnified to reduce commission. Home owners will demand lower commission to maximize the shrinking equity position in their home thus sharing their pain with our profession.
As price pressure builds, brokers will be forced to cut overhead. The bigger question is will brokers share the cost savings with their agents as well? I think not. Traditional brokers will try to maintain their 50/50 agent splits to shore up profits. The 100% companies will not reduce their monthly fees to their agents because they are tied to fixed cost.
So what is an agent to do? They will look for new business models formed in this century using technology to cut cost and pass savings to the consumer and agents.
http://www.WebMLS.net Realtors was formed in 2002 to be one of those brokers. We empower each agent to tailor the commission with each client to meet the needs of each market we serve. WebMLS agents keep all the commission less a small flat fee per closing. There are no monthly or hidden fees to the agents or clients.
Larry A. Whited, Sr. is the founder of http://www.webmls.net,/ Realtors,
a full service, discount, virtual real estate brokerage operating throughout the state of Ohio with plans to expand to surrounding states in the near future.
Larry A. Whited, Sr., President / Broker / Founder, CRB, CRS, GRI
http://www.webmls.net/ , Realtors. http://www.larrywhited.com/ An eWhited.com Company
24/7 - (513)-779.3004, Fax (513)-618-5881
P.O. Box 757, West Chester OH 45071
We will list your home in MLS & Realtor.com for only $500 and sell your home for as low as 2% (Includes Full service).