Salary for Agents?

I don't like this idea at all.

I'm sure that some company will pick it up and run with it and that will be fine.  But I think the majority of agents who are in real estate are not in this for a "salary" they are in it to make money.

I agree with you 100 percent!  The only ways the salary situation would work is if the real estate agent pulled $6M minimum a year to get the salary, the car and most agents don't do that type of production.  

Commission is a reward system for doing things right and getting them done.  Salary?  My response is "no" as it will allow those who sit in the office and do nothing but play games, read the paper, and pretend to be working! 

Commission separates the wheat from the chaf.

I could see a salary plus bonus model.  I mean a small salary like $30,000 and then you get quarterly bonuses.  Unless all agents went to some type of hourly billing model, I don't see how a completely salaried agent could make an effective business model.  Real estate is too cyclical for that. 

Salaried  agents already exixt in some areas and it works. But I believe the top acievers will always want to be comissioned just like in mortgage brokerages.

Ther are two property management companies in our town- us and another. We tell people that the differences in them and us can be summed up by this: The other company uses salaried employees to do their management while we own our company and do the management ourselves, and we work on commission. People understand this difference.
It would be the same with sales- salaried employees probably would not care as much about the job they do. (Yes, I know some DO, but many don't).

Hi J. Phillip,
I don't think it will become the norm but right now a salary looks pretty good to me!  LOL!

I think JP and Barb are right. I didn't start out as a Realtor. I have been on a punch card, paycheck and salary. None of those fit who I am. I'm the person who will stay and help ‘till the wee hours to get the job done. I will work the weekends AND the weekdays ... all 7 days if necessary. I don't mind, because I can also be there for my husband and my kids when they need me. A salary would take that away, right along with the right compensation for the right job done. 

It's a good life!

~Raine

We see lots of new agents who ask if we can start them on salary - but I've never seen an experienced agent who was willing to trade commission for a salary. No surprise there.

I am not an agent, so here is my opinion. If I were selling my home, I would want my agent to be on a comission. I would want to know they are going to be showing my house this weekend to sell it, not next weekend if they have time. Without the brass ring dangling in front of our eyes, we sometimes become complacent. Which is what I would think may happen in this instance. Interesting topic JP.

I think Prudental is testing this in California and Orlando or did a while back. But they were only doing it with Buyers agents.

you guys just don't get it your're used to raking in a 6% underdeserved commission and making $100,000 plus then I see why you want it left alone. Why do car dealers, advertising reps, boat dealers, ad agency reps, lear jet sales people, insurance reps, and just about every other commodity sold is with a salary + commission model.......... because it DEMANDS results and wotks! Most Realtors can't work under a model that DEMANDS and EXPECTS results that's why they are where they are.. Now don't get all mad and defensive there are some awesome realtors out there but I have seen it lived it and am in it... the  majority or realtors on a trust and respect level fall below a used car salesman when CNN did their latest survey. The world of real estate will draw some very talented and dedicated sales reps who will work 60+ hours a week under a salary/commission plan and build back the reputation of a realtor where it should be. Good sales people are not content with a small base salary they work huge hours and know that their boss expects results or your.... fired.  Those who say "woa is me" that this model will cost brokers too much are dead worng it will make them MORE $$$$. For those selling their home and say I want a 100% commissioned rep then plan on your home sitting on the market because over 75% of current realtors have a second or third job so selling your home comes last.

You may not like it but it is going to change and us realtors are going to have to sell with expectations, oversite, and a much higher standards... just wait and see.... My company will have a MUCH differnt model and you will read about our successes.