Competitive pressures ordinarily force providers' prices to reflect their cost structures.
Standard, traditional real estate broker commissions, however, are strangely unrelated to either the quality of the service rendered or the value provided. This article analyzes five separate elements of the traditional residential real estate broker rate structure and reveals why the traditional percentage-of-sale-price fee formula does not serve the interests of home buyers and sellers. 
The article concludes by suggesting four short questions that home buyers and sellers should be encouraged to ask about broker fees and services.
These should help brokers offering the flat or hourly fees and performance based bonuses, which best serve consumers, to overcome the anti competitive obstacles that traditional brokers have maintained to protect themselves.
This article and paper was written by Mark Nadel an attorney/policy advisor with the federal
government in Washington,D.C. He has published articles on public policy issues in law
journals at Harvard, Yale, and Stanford, and in the Wall Street Journal.
In Ontario, as a real estate broker of record we are prohibited by law of adopting some of the recommendations made by Mr, Nadel.
That being said, as a forward thinking real estate brokerage and an understanding of change and how change can benefit the consumer, we have adapted and have various commission structures and fees that offer a buyer or seller of real estate the flexibility to match fees with their comfort level.
Click here to read this great article and the four short questions.After reading about some new ideas (or old ideas that peer pressure has prevented from being adopted) and you would like a fresh approach, go here.
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