Posts tagged ‘commission reduction’

Misconceptions About Commissions

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.

April 20, 2008 at 5:23 pm 2 comments