Brokerage

Special Report: Why the real estate industry does not compete on commission rates

Most who are willing to work for less don't advertise that fact
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Listings may still be hard to come by in many markets, but the overwhelming majority of real estate brokers and agents surveyed by Inman say they’re not about to compete for sellers by advertising that they’ll work for less than full commission. Just 14 percent of the 725 agents and brokers participating in an online poll from Oct. 8 to Nov. 7 said they compete for listings by publicizing their willingness to negotiate their commission, provide services at a reduced commission rate, or on a fee-for-services basis (click to download full report and charts as PDF file). Among those who don’t compete for listings on price, only a handful (8 percent) said they already have all the business they can handle. So what's stopping them? About 1 in 4 (23 percent) said their profit margins are already slim and they can’t afford to charge less. Roughly the same proportion (25 percent) said they fear that if they represent a seller at a reduced commission, other brokers might not pr...