A couple of brokers asked me why in the world a broker should accept a business model where the real estate agents are paid 100% commission, especially when we live in such a competitive world. It’s already hard for a broker to make a profit as it is—why would anyone do that?
The reason I gave them is that I’ve noted a lot of downward pressure on real estate commissions these days. There are many iBuyer companies out there with billions of dollars to throw around, and other big companies are offering 1.5% commission to list a property; there are things happening in our marketplace that haven’t happened before.
I believe agents earn every dollar on their transactions, but the reality is that there are entities in the marketplace now that put a strain on the real estate commission. That’s why it is my belief, as a real estate professional, that as this downward pressure continues, the need to capture a higher percentage of the net result increases. If you’re accepting less on the front end to get the deal, you’ll need more money from your brokerage to make ends meet, and my heart goes out to the real estate professionals who are in the trenches day in and day out, serving their community.
If you’re a real estate professional who has any questions about this topic or if I can help you with your real estate career, I’d love to speak with you. Don’t hesitate to reach out to me!
