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 and 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 promote their listings to their buyers.

But the most often cited reasons for not competing for listings on price was that it simply doesn’t work (41 percent), and that agents and brokers are philosophically opposed to commission discounts (55 percent).

commission_chart_do_not_compete_800

“It goes against my grain as a 28-year full-time agent to stoop to that level,” said one survey respondent. “Agents who undermine (commissions) only hurt the industry (and the) profession. Isn’t dangling that kind of bone similar to prostitution?”

Real our full listing commission special report — exclusively for Inman Select members.

Not a Select member? Join today!


Inman Connect San Francisco is right around the corner — register now and save $200!

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
New January Connect speakers added: M. Ryan Gorman, Josh Team, Glenn Kelman and more.SEE THE SPEAKERS×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription