Cutting the take of real estate agents may backfire for home sellers!

Read the headline this morning. True or not? The article states "(...) Home owners making mistakes that can ruin or delay deals. One of the most common, real estate agents say, is skimping on the standard 6 percent commission. In booming or recovering housing markets, sellers often try to pocket more money by selling the homes themselves or working with brokers who agree to cut the commissions."



 
  • October 21 2013 - US
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Answers (7)

I know, it seems so surprising to people. Offer less and expect more!

As far as the DOJ stuff, please, I have heard enough. HUD pays a 6% commission, for goodness' sake! 

- Value is not determined by how much you pay, it is determined by the service/expertise you receive from the professional.

Exactly. Price is what you pay, value is what you receive.
  • October 21 2013
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Profile picture for Dunes ..
That is an excellent video MLS 4owners..thank you for posting it
First scenario seems pretty relevant ;)
  • October 21 2013
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Profile picture for MLS4owners
NAR put out an excellent video on how real estate agents can avoid breaking the law. Every REALTOR should have already seen it, but as we've seen there are many who don't remember it.

In other news, Don Fannuci told a young Vito Corleone, "This is my neighborhood. You and your friends should show me some respect. You should let me wet my beak a little. I hear you and your friends cleared $600 each. Give me $200 each, for your own protection. And I'll forget the insult. You young punks have to learn to respect a man like me!"
  • October 21 2013
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Profile picture for Dunes ..
An article where 2 Real Estate Agents say and one fella from a Mortgage newsletter says,,

Heck Zillow has more Agents saying the same thing every day

I do find it interesting this was in the article
"One of the most common, real estate agents say, is skimping on the standard 6 percent commission."

What Real Estate Agents say "standard 6 percent commission" besides those totally unaware of or ignoring the advice of the National Association of Realtors and the Dept. of Justice Anti-Trust Division?
Besides 6% is standard is just flat out not true anyway and hasn't been for over a decade...

Dept. of Justice Anti-Trust Division
"Over the past decade the average commission rate has remained relatively steady between 5.0 and 5.5 percent"
Competition and Real Estate

Not as good service if ya don't pay our "Standard"
Bet the Banks and Gov. will be/are thrilled to hear that..must also be why so many won't work for less than 6% Agents refuse to do REO's and Gov property sales lol

Anyway the article...I think it's poor Marketing...
Agents using the word "Standard" for commissions is a foolish move and I think when the DOJ decides to provide the Public a show that Agents are making it easy for them..
"Standard Commission" Blah blah in the news and on RE sites?
DOJ will be loving that at Show Time ;)

I think many Realtors need to pay more attention to what their own organization has been trying to tell them about anti-trust issues and pay better attention at the anti-trust classes...

Bad Marketing imo...Bad move saying "Standard"




  • October 21 2013
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Profile picture for wetdawgs
What an incredibly poorly written article.   Too bad they don't mention DOJ input on "standard"!
  • October 21 2013
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Profile picture for JoshBarnettREIB
Some sellers can do it, some cannot, it all depends on:
1.  product, the house
2.  pricing, asking price
3.  placement, location
4.  promotion, ads 

As in everything real estate, it always starts with, "Well that depends,"
  • October 21 2013
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Profile picture for sunnyview
"One of the most common, real estate agents say, is skimping on the standard 6 percent commission."

Please explain how stating that there is a 6% "standard commission" does not create a Federal AntiTrust issue

People looking at hiring an agent need to look beyond the commission amount, screen the professional carefully and make sure that they get what they are paying for no matter what the agreed commission rate.

Value is not determined by how much you pay, it is determined by the service/expertise you receive from the professional.
  • October 21 2013
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