Apr. 18, 2006 - My Second Most Popular Category
The second most popular category in my blog is commission. I have only written about commission once. That was a post entitled "The Enemy Inside Your Television Set" and that was more or less a rant about how paying for leads from the mostly useless lead generating companies out there, who prey upon unsuspecting buyers, sellers and agents, are helping to drive up the cost of doing business. Now that I know that "Commission" is such a popular destination inside my blog I will give you some text book type content to dwell upon.
Commission is the compensation that a seller pays a broker for securing a buyer for their property. The amount of that compensation must be specified in the contract (listing agreement). The compensation can be in the form of a brokerage fee computed as a percentage of the total sales price, a flat fee, or an hourly rate.
I will give you my opinion, based on experiences I have had, of flat fee listers in another post, which will probably turn into another rant. And let me tell you this, if I worked at an hourly rate and it took more that fourteen days days to sell your property, I would make way more money. There will be a future posting on that as well.
Commission is ALWAYS NEGOTIABLE. Anyone who tries to impose uniform commission rates is in violation of state and federal antitrust laws. A broker can, however, set the minimum acceptable rate for his or her own firm, which is why I work for Charles Rutenberg Realty of Illinois. There is no "minimum acceptable rate". My fee is negotiable.
Don't misunderstand me, I am not a cut rate lister. I am a full service REALTORŪ who expects to be paid fairly for the full service I provide. But just what "fairly" is, is negotiable.
As always, if you get my blog postings via e-mail and that bothers you simple send me an e-mail telling me to remove you from the list.
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