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RE/Max settled and I had a RE/Max agent questioning me a couple of weeks ago about my compensation offering in the local MLS because it was .25% less than "standard." He wanted to confirm that my offering was correct and not a typo. This is why there is a lawsuit.
If the brokerages would truly focus on integrity, training, and supervision these clowns would comply or be run out of the business.
I have to assume that Re/Max corporate and franchise both support that agent's methods.
RE/Max settled and I had a RE/Max agent questioning me a couple of weeks ago about my compensation offering in the local MLS because it was .25% less than "standard." He wanted to confirm that my offering was correct and not a typo. This is why there is a lawsuit.
What am I missing here? What did that RE/Max agent do wrong?
If all commissions are negotiable and agencies can't set any minimum, then how are real estate agencies going to stay in business? Any agent with the company could cut the throat of another agent in his same company by offering to list a property for a slightly lower commission.
This means that a shrewd seller could play one agent against another agent in the same company, not to mention the fact that he could play one company against another company.
Example:
Agent Tom: Mr Jones, I'll list your house for only 1.5% commission.
Mr Jones: But Agent Mary (at your company) said that she would list my house for only 1% commission.
Agent Tom: In that case, I'll list your house for only 0.75% commission.
Mr Jones: Let me get back to you. I need to check with Agent Mary to see if she'll list it for 0.5% commission.
Where does this end? It appears that it will end with real estate agents working for minimum wage (or less).
I think realtors should be paid a flat fee with maybe a bonus for performance.
I live in San Diego, and I've sold 3 homes I've lived in in the last decade. In every transaction, the listing agent took pictures and entered the info into the MLS, and then within a few days, we had multiple offers. And since the homes were newer tract houses, they were very easy transactions; no issues with lot sizes or boundaries, or issues due to age of home, etc...
30 days later, the transactions closed and each realtor received 2.5%.
The sale prices of the homes were $1M, $1.4M and $2M. So I paid out $220K in total in commissions for the sale of my 3 homes over the last decade.
Now prior to living in SD, I lived in Phoenix. When I sold my house there to move to SD, the process was exactly the same, only difference was the price of my home and thus the commission. My PHX house sold for $300K. So the commission I paid was $15K, for exactly the same amount of work performed by the realtors.
I know a few realtors here in SD. 3 of them have personally made over $1M per year for the last 6 or 7 years. Waaay over paid. I realize 8% mortgage rates have changed the market, but I still feel a flat fee for service makes more sense.
1. There is NO "standard commission."
2. It is unethical in the extreme to refer to one or demand one.
The agent should be fired by the Re/Max franchisee.
I see. Ok, a bit of a lack of tact there, but maybe he meant something a bit different. Maybe instead of less than standard, he meant, less than what is typically collected?
I see. Ok, a bit of a lack of tact there, but maybe he meant something a bit different. Maybe instead of less than standard, he meant, less than what is typically collected?
Take Silverfall at her word.
I do.
If she says he inquired about "standard" commission, I believe it's an accurate quote.
There is no lack of such behavior.
I think realtors should be paid a flat fee with maybe a bonus for performance.
I live in San Diego, and I've sold 3 homes I've lived in in the last decade. In every transaction, the listing agent took pictures and entered the info into the MLS, and then within a few days, we had multiple offers. And since the homes were newer tract houses, they were very easy transactions; no issues with lot sizes or boundaries, or issues due to age of home, etc...
30 days later, the transactions closed and each realtor received 2.5%.
The sale prices of the homes were $1M, $1.4M and $2M. So I paid out $220K in total in commissions for the sale of my 3 homes over the last decade.
Now prior to living in SD, I lived in Phoenix. When I sold my house there to move to SD, the process was exactly the same, only difference was the price of my home and thus the commission. My PHX house sold for $300K. So the commission I paid was $15K, for exactly the same amount of work performed by the realtors.
I know a few realtors here in SD. 3 of them have personally made over $1M per year for the last 6 or 7 years. Waaay over paid. I realize 8% mortgage rates have changed the market, but I still feel a flat fee for service makes more sense.
What "flat fee" would you propose?
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