Real Estate Commission Reform -- that was the name of the program I created back in 2011 that would disrupt the way real estate agents charge their seller clients. However, it turned out to be an epic fail. A brilliant idea I was offering full-service representation complete with a home staging consultation, interactive floorplans, a custom website, professional photos and everything else you get with a full-service agent for $4,500 or 3 percent, whichever was less (this did not include the additional 3 percent that would be offered to the buyer's broker). I was putting a cap on the total commission I charged to list a home. If your home sold for $500,000, as your listing agent, I would receive $4,500. A $200,000 sale would still pay me $4,500, but a $100,000 sale would only pay me 3 percent, which is $3,000. My sales pitch was simple. "I do the same amount of work for a $150,000 home that I do for a $300,000 home. So why should you, Mr. and Mrs. Seller, be forced to pay more s...
- Contrary to what several companies in the real estate industry want you to believe, the general public is not seeking a change to the traditional commission structure.
- Consumers feel there is a catch when you offer full service at a discounted price.
- When alternative brokerages fail, it reinforces the fact that the traditional real estate model is the best path for growth and success within the industry.
The real estate event of the summer
Connect with other top producing agents at Connect SF, Aug 7-11, 2017