Who Pays Full Commission Anymore?
Check out this article released by the Associated Press regarding negotiating a real estate commission from traditional full-service real estate companies. Now most of this article really compares the “Sell Side” of the business and not the “Buy Side” where many innovative companies have really come in to shake up the industry such as – umm Zip Realty, Redfin, Iggy’s House, BlueRoof & umm us (CondoDomain.com).
Don’t be shy about haggling over what you pay your real estate agent. A study released Monday by Consumer Reports found 71 percent of sellers who negotiated for lower commissions with their brokers were successful. But only 46 percent of sellers surveyed tried.Those who paid commissions of 3 percent were just as satisfied with their broker’s performance as those who paid 6 percent, the study found.
The lesson Haggling won’t hurt.
In fact, those who paid higher commissions were more likely to have regrets about the selling experience. Nearly one-third of them said they should have been more aggressive in negotiating a fee.
Sellers were most likely to get lower fees from independent and RE/MAX brokers, said Mark Kotkin, director of survey research at Consumer Reports.
But they will all negotiate. Just ask for it, he said. It’s like buying a car. A lot of people think (the price) is set, but it’s not.
Independent brokers may be more likely to negotiate fees since they keep their entire commission, while those who work for other brokers typically split commissions with the broker in exchange for marketing and office support.
About half the home sellers surveyed paid less than 6 percent in commission. The study is being published in Consumer Reports September issue. The issue also includes tips on which home improvements provide the biggest pay off.
Okay, first and foremost, of course they did not include the selling side. This is what is amazing about the media and language – there is power in not what is only said, but the most inherent power is what is NOT SAID. So, person A says, “I will ignore this whole aspect of this industry …heh…heh…heh (imagine a thought bubble and drumming fingers of a traditionally dressed real estate agent)…
So, again, saying, “I will ignore this whole aspect of the industry because then through ignoring and ignorance I don’t vouch, give value to, or agree with the changes being made…” And why does this happen? Because when threatened by newness, the politics of business means covering in the office and just …doing that – Holding power by NOT mentioning an entire aspect of something. Damn, the news every night – we are dripping as a society in the language laden messages NOT being sent as much as the ones being sent!
Sorry, I’m venting but this kind of stuff gets me going … And well, I’ll tell you why…
Let me quote the article,
But the best advice I can give home sellers is that it is far more important to focus on an agent’s performance, especially in today’s housing market,” said Alex Perriello, president & CEO, Realogy Franchise Group, the parent company of Coldwell Banker and Century 21 Real Estate.
Now, please change ONE WORD ABOVE – Make the word sellers to buyers…so that it reads
“Best advice I can give home BUYERS is that is far more important to focus on an agent’s performance, especially in today’s housing market…”
Buying anything is an investment. Investing in any relationship is any investment. So, media, get a clue- Start investing some TIME is researching the success stories of EXCLUSIVE BUYERS AGENTS…Maybe they have something to teach?
Uh, need I comment more?
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