Our home-selling clients aren’t looking for low commission rates. They’re interested in ideas to negotiate wisely and increase their profit and security. 

Essential Real Estate delivers better ideas to make the market work for our clients. Here’s one example. 

You signed a listing contract if you sold a house with a REALTOR in the last 30 years. The terms of that agreement committed you to pay a commission of most likely six percent of the sales price. Fifty percent of the commission was promised to a buyer’s agent. If six percent of your sales price was $24,000.00, you were committed to paying the buyer’s broker $12,000.00 to work against you. Regardless of the quality of the offer, you were locked into $12,000.00. Some people think that’s crazy. 

Someday the commission sharing system used in Multiple Listing Services may change. We think our clients should have the ability to decide the amount of money they’ll pay the buyer’s agent AFTER they see the quality of the offers on the table. The rules of the MLS allow brokers to give that choice to their home-selling clients. 

The choice is easy. Our clients can promise to pay the top rate commission of 3% to a buyer broker when signing a listing contract. Or, they can reserve the right to increase their cost after they see the terms of the offer. Nine out of ten sellers promise to pay less than the top rate and negotiate the fee depending on the quality of the purchase agreement. The results are compelling. The commission is a non-issue for the buyer’s broker, and our clients easily save an average of $4,000.  

We’ve been doing just that since 2019. Eventually, other firms may catch on. Until then, we will lead in showing home sellers how to make the commission-sharing rules work for them.