Whats the big deal

hey, its up to you. I think many agents do not have the flexibility that you do. There companies pressure them to get more as they do have overhead. As long as you can make a living on the co-op side I am fine with that. can you say what you do charge.

I have been trying to research this because I am working on my Broker's license..consequently I'm concerned how going off on my own would impact my business...

I think that if you don't have a huge Brokerage backing you then the Client feels that you aren't going to have the resources or be as competitve as the large Brokerages ... even though you do have the same resources it's hard to obtain the confidence of the Client.   That is what you need to get through to your Clients...you do have the same marketing resources....

It's so important to Brand yourself ...

I have one more class then I get my broker's license (well, I take the test), in this market, people often go with the agent, not the company.  I have lost listings to seller's cousins and relatives and friends because during the boom, everyone went out and got their real estate license. I welcome the chance to adjust my commission for clients who do a lot of business with me - without putting that awful 1.75% or 2% in the MLS!  I wouldn't mind paying a full co-op like you do.  Without the overhead, you can do that.  I think that is one of the perks of going out on your own.  I think the squawking comes in when you get the listing because you charge x% commission and they charge 2-3% more than that!  It isn't the co-op that they are worried about.  They don't want to be they buyer's agent, they want the listing!!!  If they want that flexibility, tell them to get the education and go out on their own.

:)

Eva

Hey Jeff, interesting post. I'm also a broker, but down in Orlando, FL. I think the problem has to do with changing what is considered to be standard.

 Think of it this way: I'm Joe Schmoe, and I charge 6% on all my listings. You come along and start offering your services for 5%. You should attract more clients because they are saving money. Another guy comes to town, and is fine with 5% also, so now 2 agents charge 5%, and 1 charges 6%. Me, the 6% guy, will almost never win a listing with my commission because people start to expect the 5%.

 Now, put this in a larger scale. If more and more brokers/agents start lowering their commission rates, the general public will start to think the lower amount is the norm, and the person that had the "standard" commission, is now overcharging, or just being greedy. 

 We saw this happen in late 2005 when the market cooled. Tons of agents offered rebates or lowered the commission rates, and the 6% "standard" was out the window.

This is just my humble opinion. We all need to face the fact that the market, and the way people are buying and selling real estate are changing daily. We shouldn't expect "standards" to stay that way. So Jeff, do your thing. You never know...if everyone does what your doing, you might be over charging. lol

 My solution is a 6% or pay-for-service plan. Their choice. 

Hope this shines some light on the subject. 

There is more to real estate than leads, and commission. Yes we all work for money but I personally love the synergy of a great office.

Shift happens, our industry is in the middle of a big shift and some of the guys don't like us bringing in these ideas causing rapid shifts. Get my drift? I agree with you completely, the only problem with this shift is that the big guys want to cry foul about our shifting the market. If you provide full service and your clients are provided for with an even compensation to a buyers rep, well let the shift hit the fan... I have someone in my office who said 3 years ago they only take 7% lisitngs....Well I do 5% and make more $$$$ so he can go beat that shift with a big ol'stick!