Real estate commission mythology

When I meet with clients they often tell me what the going rate is for real estate commissions is. The number seems a bit high but if people are willing to pay it I won’t turn it down.

We are not allowed to discuss commissions amongst ourselves and there are no price lists out there. If two brokers discuss how much they charge they can be accused of price-fixing.

People who believe that all real estate agents always charge a certain amount probably end up paying more. Real estate commissions are always negotiable and there is no “going rate”.

I don’t have a problem with being paid more than I had planned on asking for and will happily accept it when it is offered and I suspect that my peers feel the same.

Also, I love the idea of “discount” brokers. If there isn’t a rate sheet or price list how do people know they are getting a discount? I offer a flat fee option where the seller does most of the work and I charge a flat fee upfront for limited services. Those services usually include listing the home on the MLS and photography and more. Not all real estate companies offer flat-fee options.

Getting paid upfront is different, normally I work for free until after the sale closes and if it doesn’t close for any reason I don’t get paid.

Oh and please report an agent who won’t show a home because the commission payout to the buyer’s agent is low. You can and should file an ethics complaint against that agent.

Barges on the Mississippi River
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