Commissions are negotiable. Period.

Reblogger Praful Thakkar
Real Estate Agent with LAER Realty Partners

Wish we had price tags on us when we go to listing appointments - so sellers can scan and do the price check....lol!

Question asked frequently - What commission do you charge normally?

And as Alan May shares answer in this post - 

Commissions are negotiable. Period.

Original content by Alan May

Many times, over the years, in online Q&A's with the public about real estate, a consumer will ask the question of we Realtors "What's the standard commission in my area?"

Typically, good agents will jump in and state: "There is no 'standard', real estate commissions are negotiable"... and go on to expound on the virtues of finding a good Realtor, and not allowing the commission to be your sole criteria in selecting a Realtor. We can go into more of that, but that's a different post than this one.

Almost without fail, at some point or another on that thread, we go down the rabbit-hole with some agent who will say... "standard commissions in our area are 6%, but I'll do it for 5%, call me!!" (it's always followed by "call me"!) or "everyone in our area charges 5%".  A few of us will try to explain to them that even the discussion of commission amounts, in public (and social media IS public) is a violation of Sherman anti-trust laws, and we inevitably get into a heated discussion over whether indeed that's true or not.  In some of those conversations, I've been told by agents who've been in the business for a long time (so, what I'm saying there is ... not just some random "newbie")... that I don't know what I'm talking about...(which, in fairness is sometimes the truth) that we're just talkin' in generalities... and there's nothing wrong with that.

One agent went so far as to tell me that he'd been playing in the Sherman Anti-trust sandbox for 32 years, and he knew it better than I did...so basically "shut-yer-pie-hole".

Well, in a recent "thread that wouldn't die", we had that same deja-vu-vu conversation.  But this time, one of the Trulia non-Realtor-regulars decided that he would test it, and sent a copy of the thread off to a Washington advocacy group.  They, in turn, turned it over to the Department of Justice, who contacted him by phone, confirmed that it was an illegal discussion, and asked a lot of pointed questions... (including the url for the conversation) and have been monitoring.

I imagine there will be handful of interesting phone calls to managing brokers.  What you say on a social media website, especially as a professional Realtor, is there forever (and ever and ever)... make sure that what you say is correct, and legal.

Now, I don't know anyone personally, nor have I heard of anyone personally, who's been brought before the D.O.J. on Anti-trust charges... but you don't want to be the first.... do you?

 ALAN MAY, Realtor®
Specializing in Evanston Real Estate and North Shore Real Estate

Coldwell Banker Residential Real Estate, 2929 Central Street, Evanston, IL 60201
847.425.3779      Cell: 847.924.3313      Email: Almay@aol.com

Evanston Real Estate & North Shore Real Estate
Licensed in Illinois

   

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Rainmaker
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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Praful, great post to re-blog, and commissions are negotiable, but should not say the normal is.....

Sep 30, 2015 10:04 PM #2
Rainmaker
1,288,363
Raymond E. Camp
Howard Hanna Real Estate Services - Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

Good morning Praful,

Thanks for reposting; we need to learn to think before we speak!

Make yourself a great day.

Sep 30, 2015 10:32 PM #3
Rainmaker
2,747,647
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Nice choice for a reblog and commissions are definitely negotiable, it's just a shame that so many Sellers fall for "deals" and don't get the most out of the sale or the service they deserve, all because they think they are getting a "deal".  I am sure 9 out of 10 times, they actually lost money by taking a "deal", haha.

Oct 01, 2015 02:25 AM #4
Rainmaker
3,984,945
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Yes, they are negotiable, but it is still up to us to decide if the commission is worth the hassle.

Oct 01, 2015 07:07 AM #5
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Jeff Dowler, CRS
eXp Realty of California - Carlsbad, CA
The Southern California Relocation Dude

Praful Thakkar 

Yes, they are always negotiable, as I tell sellers. But there are other decisions that I will make based on the discussion. Good choice for a reblog!

Jeff

Oct 01, 2015 01:15 PM #6
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Thanks all for stopping by - really appreciate it.

Oct 12, 2015 03:36 PM #7
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

That's a great news Judi K Barrett that we can set our own commissions - and not the board....lol!

Oct 12, 2015 03:43 PM #8
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Luckily we decide on what we can charge for our services - at least that much freedom we have!

Oct 12, 2015 03:44 PM #9
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Joan Cox - yes, what is normal is not always true!

Have you seen the normal temperatues? How far we are all the time?

Oct 12, 2015 03:44 PM #10
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

The idea of normal is - in normal circumstances that's the expectation.

Is that always true? I don't think so.

Oct 12, 2015 03:45 PM #11
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Raymond E. Camp - that's so true. Specially when we talk about commissions.

Oct 12, 2015 03:46 PM #12
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

I am not sure - however, it's believed that talking about commission in public is not acceptable!

Oct 12, 2015 03:46 PM #13
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Brian England - isn't it strange, people know it's a deal and deals rarely work - still fall for it?

Oct 12, 2015 03:47 PM #14
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Specially, when it's too good to be true - one must not fall for such deals. However, they learn from mistakes - most of the time.

Oct 12, 2015 03:48 PM #15
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

William Feela it's good it's upto 'us' on what we want.

Oct 12, 2015 03:48 PM #16
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

In some situations, even if they pay higher commission, it may not be worth the higher price! Just let it go when this happens.

Oct 12, 2015 03:49 PM #17
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

After all we are paid at the closing and nothing prior to that.

Oct 12, 2015 03:50 PM #18
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Thanks for stopping by Jeff Dowler CRS .

Yep, it's based on many factors - including the discussions with the sellers.

Oct 12, 2015 03:51 PM #19
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Appreciate all the comments on this re-blog.

Oct 12, 2015 03:51 PM #20
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