Misconceptions About Commissions

April 20, 2008 at 5:23 pm 2 comments

I had a conversation with a seller over the weekend which brought to light a couple of misconceptions about broker commissions and agent commissions. This seller, who had canceled a listing twice with two separate agents and was now selling his home by himself for almost 12 months at this point, wanted to know if I was a broker. I said, “No.” His reply was, “then you can’t be of any help.” I realized later on that he was referring to a possible commission reduction. The misconception of some sellers is that “brokers can cut their commission much more than an agent.”

This is not so. Agents and Brokers can list a house at any commission and even list it for free if they would like to. I have seen agents list their parents’ home for free, which is perfectly fine, as long as the relationship is disclosed in the MLS listing.

A good philosophy to follow when listing your home and negotiating commissions with a Realtor is this: “You Get What You Pay For.” Many good agents won’t list a home for one percent unless they plan not to sell your home.

Entry filed under: Arizona Real Estate, Chandler Real Estate, Phoenix Real Estate, Real Estate Deals. Tags: , , , , .

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2 Comments Add your own

  • 1. Chris Moran  |  April 20, 2008 at 5:40 pm

    Nice writing style. Looking forward to reading more from you.

    Chris Moran

    Reply
  • 2. Toronto real estate agent  |  April 21, 2008 at 9:53 am

    That’s true! When talking about commissions, most of the realtors are trying to avoid this topic. I am dealing with Waterfront condos, that’s a segment where client’s are usually rich, however, they often think we are working for free…

    Reply

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