What Des Moines Iowa Real Estate Company Only Pays $1 Co-op to agents?

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Real Estate Agent with Red 1 Realty 2012003089

I just read this press release about how Keller Williams Realty went and paid their agents the loss of a normal commission because a competing real estate company was only paying a $1 co-op to the buyers agents on their listings... To me, that is one of the most jacked up things I have ever heard a company do...

My question is, does anybody know what Des Moines Iowa real Estate company only offers a $1 co-op to the buyer agents?

 

Global Real Estate Company Keller Williams Realty Rallies to Pay Commissions Denied to Des Moines Agents

Vice Chairman of the Board to Deliver $107,040 Check on Friday

 
DES MOINES, Iowa, Mar 21, 2013 (BUSINESS WIRE) -- Mo Anderson, Vice Chairman of the Board of Keller Williams Realty, Inc., the largest real estate franchise in agent count in the United States, will visit the Greater Des Moines market center on Friday, March 22nd, to deliver a gift of $107,040 to agents who have been denied commissions for helping their clients buy homes listed by a local competitor.

The Keller Williams Greater Des Moines market center opened in March 2012 with 23 agents. Since that time, its largest local competitor has paid Keller Williams associates only $1 in commissions on each of the listings the competitor controls. Driven by Keller Williams Realty's belief in doing the right thing, the Greater Des Moines associates have continued to put their clients first and sell the competitors' listings despite earning only $1. To date, the associates in Des Moines have been denied more than $100,000 in rightfully earned commissions.

Last month, during Keller Williams Realty's annual convention in Dallas, Anderson brought several Greater Des Moines associates on stage to honor their commitment to serving the Des Moines community and challenged the Keller Williams family to support their fellow agents.

"We are committed to making our Greater Des Moines family whole again," Anderson announced from the stage. "And we are going to continue to help them until these business practices end."

The response was overwhelming. Within minutes, fellow associates wrote checks and stuffed envelopes, more than covering the over $100,000 in commissions denied to associates to date.

Anderson will visit the Greater Des Moines market center on Friday, March 22nd at noon to meet with the agents, honor their commitment to client service, and deliver this first gift from the newly established KW Family Fund.

"The support of our Keller Williams family is a powerful statement of who we are. What an honor it is to be in business with a real estate organization who stands united, supports each other and is unwavering in their commitment to do the right thing always," said Brian Wentz, Team Leader, KWDSM.

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Rainer
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Jeff Lowen
The Real Estate Expert Advisor - Fairfax, VA

Great story - Proves KW is a company full of amazing agents! However, why are we so hush-hush about the other company? Although no commission (or co-op) is a standard fee, has this 'other company' actually done something wrong? Illegal? Is publicizing this story just enabling similar behavior? As a listing agent, if getting the most money for your clients' home IS what's in their best interest, are we celebrating the right thing? As a buyer agent, if getting the best price and terms for your client IS what's in their best interest, don't we not have the, 'how I get paid' talk? And, if we're willing to accept the terms published, since real estate is one of the only professions where we get paid from someone other than who hired us, do we not make that choice ourselves as business owners? 

Kudos to Mo Anderson and the KW community. It's obvious there are challenges in the industry, but what do we do moving forward to alleviate issues like this in the future? And with respect to government regulations in the mortgage industry; Is the real estate agency profession not far away from similar regs? 

As much as I might agree with you either way, Chris, is it (now #1) KW & its community of agents for coming to the rescue of its Des Moines agents' decisions, or is the '$1 co-op co.' the recipient of the 'jacked up' award? 

Mar 26, 2013 07:54 AM #1
Rainer
3,778
Theresa McDonald
Allen Tate - Charlotte, NC
Theresa McDonald, Allen Tate

Here's more about the story.  I also found the release by KW to be very unsatisfying, leaving more questions about the context.  The company is Iowa Realty Co.

http://www.businessrecord.com/Content/Real-Estate---Development/Real-Estate---Development/Article/Keller-Williams-official-will-visit-Clive-bearing-a-gift-for-agents-in-fight-with-Iowa-Realty/173/835/57164

Mar 27, 2013 11:10 PM #2
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Rainmaker
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Christopher Lotte

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