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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: What is the market for RE Agent Commissions right now? Posted by Mark on November 12, 2009 at 11:12 PM In Reply to: What is the market for RE Agent Commissions right now? posted by Scrooge on November 12, 2009 at 9:24 PM Good questions... disclaimer, I am a working Broker for many years (and Ward grad). Now, it comes down to your business model. Some of the pros in my area pay full commission (5% total) and they expect the broker to have an active roll in research, evaluation, eviction. Some of the smaller players use discount brokers. My observation is that those guys often aren't as profitable. That is on a fairly small sample of investor styles, but it has held pretty constant for the last year or so. Am I biased? You can think so. I just look at the numbers. On my deals, I'm the broker (big surprise). Now, from having buyers in my car (I don't do that but my wife does), I avoid the discount brokers unless there is a compelling reason (well priced property is a pretty compelling reason). The simple reason is that I often have to do that agents job for them. If the agent is any good, they usually wouldn't work for reduced fees. Now, with that being said, I've had some very good transactions with redfin and zip realty. Good, smooth transactions are rare but they do happen. Am I discriminating? Well... there have been cases where agents can choose to not work on properties for various reasons and still uphold our fiduciary duty, so, no, I'd argue I'm not. There will be some buyers that are heavily influenced to avoid your property (read Freakenomics). But, hey, you only need one buyer. If you have done your homework (it's not all that hard) to property price your property and can get the thing through escrow, then save the commission. Just figure how it all fits in your model. Let's be fair, there are some really bad full commission agents also. Good luck, Mark Follow Ups: So is a 5% commission split considered "full"? (nt) Scrooge 1:09 PM, 11/13/09 (3) Re: So is a 5% commission split considered "full"? (nt) Mark 6:28 PM, 11/13/09 (2) Re: So is a 5% commission split considered "full"? (nt) Scrooge 9:54 PM, 11/13/09 (1) Just pay the going rate. Some areas are 2.5% each side others are 3%. (nt) JK (the other JK) 1:21 PM, 11/15/09 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Good questions... disclaimer, I am a working Broker for many years (and Ward grad). Now, it comes down to your business model. Some of the pros in my area pay full commission (5% total) and they expect the broker to have an active roll in research, evaluation, eviction. Some of the smaller players use discount brokers. My observation is that those guys often aren't as profitable. That is on a fairly small sample of investor styles, but it has held pretty constant for the last year or so. Am I biased? You can think so. I just look at the numbers. : On my deals, I'm the broker (big surprise). : Now, from having buyers in my car (I don't do that but my wife does), I avoid the discount brokers unless there is a compelling reason (well priced property is a pretty compelling reason). The simple reason is that I often have to do that agents job for them. If the agent is any good, they usually wouldn't work for reduced fees. Now, with that being said, I've had some very good transactions with redfin and zip realty. Good, smooth transactions are rare but they do happen. Am I discriminating? Well... there have been cases where agents can choose to not work on properties for various reasons and still uphold our fiduciary duty, so, no, I'd argue I'm not. There will be some buyers that are heavily influenced to avoid your property (read Freakenomics). But, hey, you only need one buyer. : If you have done your homework (it's not all that hard) to property price your property and can get the thing through escrow, then save the commission. Just figure how it all fits in your model. : Let's be fair, there are some really bad full commission agents also. : Good luck, : Mark [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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