Deb's Lake Conroe Real Estate & Stuff! : Are You Walking A Tight Rope?

Are You Walking A Tight Rope?

The Real Estate business is definitely changing.

When you're searching your MLS have you noticed that the compensation split is being lowered too many times? Obviously there can be no price we're all free to sell homes at whatever rate we choose. Right?DSCN5283.jpg tight rope waler image by twinone75

My question is...

"Why are we lowering the rates?"

For heavens sake it's more difficult to sell a house today than we've ever known it to be! It's more difficult to find qualified buyers. It's more difficult to attain financing. It's more difficult to remain within the guidelines of our FNMA/FHA/VA sources and here we are LOWERING THE COMPENSATION?????


If we take the stance that our services, knowledge, advertising sources, E&O insurance, license and experience are important....


We should question strongly the Discount Brokers.  Are they diminishing our true value?

Are you walking a tight rope by lowering the value of Real Estate Professionals position?

Where will it end?



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Comment balloon 6 commentsDeb Brooks • June 20 2009 01:42PM


Deb - I guess we've been lucky so far and the splits have been the usual - the only ones that commonly look fishy are the short sales when they have the completely non comittal "commission to be determined by lender".  This makes us work much harder to sell the 'normal' listings!


Posted by Brian & Marie Spray, Frisco TX Realtors ( - Action Realty Group) almost 10 years ago

Deb, good point that with more work you should be earning more per hour worked. It is supply and demand though, if others cut their rates that is your competition. Doesn't make a whole lot of sense I agree. Our buyer split has been pretty firm at 3% around here.

Posted by Gary Woltal, Assoc. Broker Realtor SFR Dallas Ft. Worth (Keller Williams Realty) almost 10 years ago

Good point Deb. And have no fear, rates will continue to slowly rise. They cant stay at a low 5% rate for ever. Hopefully they dont sky rocket though.

Posted by John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 almost 10 years ago

Deb:  Although I won't mention any percentages here... I cannot remember anything different about brokerage percentage splits in a very long time.  Although, obviously, everything is negotiable, things appear to be quite competitive.

Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) almost 10 years ago

And, by the way... as far as any "discount brokers" are concerned... it's whatever the market will bear.  They are free to use whatever marketing strategy they find useful.  If they find an innovative way to earn a living, and still provide great service... good for them !

Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) almost 10 years ago

I question the same thing Deb. Frequently, the commission is broken down even further by each $100,000 of a sale. Doesn't that smack a bit of enticing a buyer's agent to bargain with a bit less fervor?

Posted by Sherry Siegel, Managing Broker, EcoBroker, ABR (BrokersGroup, serving Sequim and Port Angeles) over 9 years ago