quote:
Almost every sales job works off of some form of % based commission, no? A tiered structure? I just don’t see flat fee ever becoming a reality since there’s a variable/negotiated price and it at least provides some incentive.

When every agency in the nation are in collusion and charge the same fee it is price fixing and a anti-trust law issue. sales jobs other than real estate are free to set commissions and fess at whatever is agreeable between the salesperson and those paying them.

This is a good article on real estate agencies and anti-trust violations.

LINK

"But real-estate brokers should understand that any agreement, express or implied, with a competing brokerage to charge a certain commission, or offer the same commission splits, is a per se violation of the antitrust laws, with both criminal and civil consequences.Jan 28, 2014"

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Posted by LSUtigerME

Walker, LA

Member since Oct 2012

3817 posts

Posted on 10/15/17 at 7:55 am to EA6B

I understand your point, but they aren’t in collusion. Each agency is free to negotiate, and many do. Every agent I’ve ever seen post anything online, is always very careful to never mention or discuss commission. I think this also leads to some of the misunderstanding, since there’s little information about commission directly and 6% is still generally recognized as the default.

I’ve seen anywhere from 1% to 3%, individually negotiated for buyer/seller, flat fee listings, tiered commission (6% first 100k and 3% after, split between buyer/seller).

The only thing that can change the commission structure is the market. I think the popularity of FSBO, as well as popular sites like Zillow, has caused a shift. It’s definitely not a set 6% anymore, at least for residential. Large commercial real estate transactions, I have no idea where it falls. But I imagine the market can influence it all the same.

I also believe part of the issue is around qualification and certification to become a realtor. It seems every house wife who finds themselves bouncing around jobs or unhappy wants to get their real estate license.

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Posted by ItNeverRains

37069

Member since Oct 2007

25978 posts

Posted on 10/15/17 at 4:40 pm to EA6B

quote:

When every agency in the nation are in collusion and charge the same fee it is price fixing and a anti-trust law issue. sales jobs other than real estate are free to set commissions and fess at whatever is agreeable between the salesperson and those paying them.

This is a good article on real estate agencies and anti-trust violations.

LINK

"But real-estate brokers should understand that any agreement, express or implied, with a competing brokerage to charge a certain commission, or offer the same commission splits, is a per se violation of the antitrust laws, with both criminal and civil consequences.Jan 28, 2014"

I’ve charged everything from 0% to 10% commission this year. This is retardation.

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