I can see that my colleagues have some strong feelings about this proposal - and it's understandable. Maybe this is a good time to explain a little about what we, as realtors, do for our commission.
There are very few jobs where one can work hard, daily with the utmost diligence and not earn one penny for a year or even more! And yet, that happens to us. Sometimes a client who weâ€™ve worked with will decide that they canâ€™t actually afford to buy what theyâ€™ve dreamed of â€“ after weâ€™ve shown them 50 or 60 properties. Sometimes they decide on another town, again â€“ after seeing many properties. Sometimes we drive to dozens of homes, showing properties and writing offers for our clients and it just doesnâ€™t work out. We do not earn anything for that work.
We also may have a long relationship with the sellers of a property, where it may appear that in 2 months weâ€™ve sold a home.
I think itâ€™s important to point out that, while it looks like Realtors may earn a large commission on a single sale â€“ most people have no idea what went into the experience and expertise, the many properties theyâ€™ve shown or the months the Realtor has been sending comparable sales to the sellers and in discussion with sellers as to how to best present their property for sale.
And then there is our liability. We carry expensive insurance that helps protect us against lawsuits, but it doesnâ€™t cover everything. Iâ€™ve never been sued, but I worked for a company where the manager used to talk about â€œwhen,â€ not â€œifâ€ weâ€™re sued.
We pay for marketing ourselves and the properties we list for sale. We pay for fees to the local, state and national associations and membership to the multiple listings we can access, and our key codes to let you into the property. It would seem like offering a 50% â€œdealâ€ for doing our part in obtaining your property is fair, but when you look at the whole picture â€“ that commission youâ€™re talking about on a $200K property is a small compensation for all of the work that will go into the whole process.