Cutting sales commission may backfire on home seller

Buyer agents need incentive to show listing

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

A few days ago I received an e-mail from a very smart reader. I know he is smart because his e-mail address says "," which presumably means he graduated from prestigious Harvard University. He asked if real estate listing agents would reduce their customary sales commission rate for expensive homes. Then he gave an example of a $1 million house sale, which, he says, doesn't include much more work for the listing agent than selling a less expensive home. Purchase Bob Bruss reports online. My reply noted some successful realty agents would reduce their sales commissions on expensive homes. But the big drawback of reducing the commission rate, I hastened to add, is many local multiple listing service (MLS) buyer agent members will choose to show a home with a low commission rate last to their prospective buyers. According to the respected "Real Trends" Web site, the national home sales commission rate is now about 5.1 percent. However, this survey was taken during the rec...