When I think about all the conversations I have had the last few years on defending Real Estate Commissions not only with clients, customers, agents, other brokers and other people wanting to be REALTORS, I can't help but think nobody really understands commission or the breakdown given to the broker, because it is all different and many models of business for brokers to follow such as:

1. Full Service
2. Flat Fee Service
3. Partial Service
4. No Service

And BTW, there is no ryhme or reason or guarantee, all have variations and you need to shop it to find out what is right for you.

When a consumer makes a deal with an agent to sell their home usually it is a percentage of the list price, but do you know how that is broken down, most agents won't even go there. So here is a brief explanation: the broker on each side of the deal usually gets 30% to 50% of the take, the agent still has taxes and marketing expenses on top of that and many agents ask for nothing up front and incur all the risk up front.

The Realtor is the one doing all the work and the broker is really the middle man taking a huge cut!

It is not unusual for agents to pay their broker $20,000 to $60,000 or more a year, a high volume agent pay much more.

With the whole commission structure being questioned in real estate, that is why the discount models have succeeded, people want a change and options. So,  Realtors must be Flexible and creative in new ways to service the future of Real Estate.  Make sure your Realtor will accommodate you and ask a lot of questions.

The Real Estate Transaction is a very complicated process and deserves a trusted advisor that will work on your behalf.

The next time you discuss the commission issue with an agent, remember who is doing the work, the broker is the one that needs to take the CUT! He is the Middle Man.

This is a very complicated issue and different brokers do different things so this is not a dig on all brokers, but they need to participate in the adjustments to commissions that agents are making.

This is what makes real estate interesting and the whole commission debate up for grabs.

You will see new creative models on how to sell and buy property with less broker participation, I believe.
 
We believe in a new and improved fairness for all, and implement some of these new strategies ourselves.

After all, it is a consumer driven business and brokers need to adjust their business models to be fair to their agents that make them a lot of $$$$.

I will be discussing more of this in the future....stay tuned.
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