AgentBrokerage

An experiment reveals how commission-cutting benefits no one

Discounts don't equate to better or quicker sales
  • Offering a bonus to buyer's agents leads to the lowest sales price, and it takes the longer to sell.
  • Listings with a commission less than 3 percent have lower sales prices and take longer to sell.
  • The best strategy for getting the highest sales price is setting a listing commission above 3 percent.

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

There is one topic that every listing agent, broker and real estate coach talks and thinks about all the time: How much commission is the right commission? My company NextHome conducted an in-house research experiment using data from the Mid-Florida MLS. We used a data entry set of more than 8,000 results including only existing home sales between the $150,000 and $800,000 price range. We pulled all of the sold single-family homes sold in Hillsborough County between January 1 and December 31, 2015. We excluded foreclosures, short-sales, auction properties, properties with missing information, homes that sold for less than $149,999 and homes that sold for more than $800,000. As a listing agent, the primary goal is to sell your listing as quickly as possible and to get the highest closing price as possible. There are many factors when it comes to getting a home sold that are outside the control of the real estate agent, such as current supply, interest rates and macroeconomic fa...