Peter, My what a debate you have going. I was interested to read all of the articles as well as the responses, as I have recently opened my own "fee for service" firm. My competition is shaken by it and somewhat afraid, as well they should be. After spending 10 years in the top of the heap, I have taken a giant leap out on my own. However, I have no fear as it is my opinion (and numerous other's)that lower real estate fees are inevitable. It is only the mega brokers who still hold tight to the old fashioned belief that our pay check should be written based on the price of the property in question. Yes, the majority of NAR membership is still held by "commissioned" Realtors, however each new day brings another broker with belief that clients should pay only for what they want and should ALWAYS pay for what they receive. The large franchise's business models will not allow them to meet the growing demand for lower real estate fees. That is why there are more "For Sale by Owner" homes for sale than ever. And that number will continue to grow as long as our industry refuses to give them what they want.
I have decided that I am worth being paid for all the work that I do, and not just for results. Does a doctor only get paid if he heals you? Does a CPA only get paid if they save you money on your federal taxes? What about the advertisers that we utilize to market our seller's properties? Do they only get paid if their publication sells our listing? It is high time that we receive the respect in our industry that we all deserve. I asked a fellow Realtor a question recently. "How can you justify a $6,000 commission on a $100,000 home that sells in 30 days and then charge $18,000 to the seller of the $300,000 home that sold in the same length of time?" "Did you spend more time on one or the other?" The reply was, "Oh, well. It just makes up for all the ones that do not close." How appalling. So are we jabbing some clients to make up for our losses on others? And we wonder where the public gets the negative feelings towards us.
I provide all the same services that I have always provided to my clients, plus some. Now that I am paid for all that I do, I can afford even more products and marketing avenues for my seller. Clients are listing with me because I provide MORE services for less money.
In closing, let us acknowledge that the issue of lower commissions or fees is not a new debate. Let's also acknowledge that the public is tired of paying us based on the price tag set on their home. The truth is that they are receiving very few services from many "traditional" brokers as overhead soars and profits dwindle.
Change is inevitable and we are a nation of free enterprise. While I do not think that you, Peter, were putting we "discount brokers" down, it is becoming a problem with fellow Realtors. I do believe that they took the same oath as I did.... Not to make disparing statements about fellow Realtors.
Let us all continue to work together, in whatever way we choose, to the benefit of the public.
Best Regards, Kathy
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