Industry News

Should real estate agents drop their commissions?

Two top producers offer different perspectives

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Home sellers today have a lot of options if they don't want to pay full commission to a real estate agent. Just type the words "real estate commission discount" into a popular search engine and you will get more than 81,000 Web page listings. The result of this trend has been some downward pressure on commissions. The average commission rate in 2003 was 5.1 percent, down from 5.4 percent in 2001, according to Real Trends, a real estate research and publishing company. Some agents have reacted by dropping commissions when asked. Others are setting up a menu of services, offering various service levels depending on how much the client chooses to pay. Does this mean you have to drop your rates to stay competitive? Not necessarily. The matter is debatable, and we have two cases in point that demonstrate that either approach can work well. No Discounts: Jeff Scislow Jeff Scislow of RE/MAX Results in Eden Prairie, Minn., has been the top RE/MAX salesperson in Minnesota for several years...