Licensed real estate agents are less likely to show homes to their buyer clients where the seller
offers lower buyer agent commissions (less than 3.0%).
Since 1989, I’ve heard Realtors® claim other Realtors®, but not themselves, would hide listings
from clients. The statement is a myth based on no viable evidence and an
accusation of unethical and illegal practice. We believe the members of Wisconsin
Realtors® Association has a documented history of practicing as law and ethics-compliant
Evidence Disputes the Myth
Our typical client offers commissions ranging from 2.0% to 2.5% to buyer agents. The time on
the market and sales price mirror the MLS statistics for the respective neighborhood. Our
the sample isn’t sufficient to report to the nation, but this one is: Open Doors’ (The buyer’s war on
real estate commissions by Mike DelPrete)
Commission Consumes Home Equity Savings
The real estate commission is the highest cost to sell homes. Compressing the commission on
both sides of the transaction (Compress the buyer broker fee and listing commission from 3.0%
to something less) may appear to be the intent of dozens of well-funded high-tech ventures. In
practice, mega-corporations intend to redistribute the commission from the brokers and
consumers to themselves. In that model, the consumer gains nothing.
Essential Real Estate’s Model Leaves Money With The Owner
When an owner provides a reasonable commission without promising to pay the
top-of-the-market rate, they can decide during negotiations to accept a lower price or agree to a
higher rate in exchange for other favorable terms. Our business model gives our seller-client
time and information to make better decisions about their profit and security.
Our Model is The Future of Real Estate
We guide our clients who own $400,000 homes to negotiate safer offers with an opportunity to
keep an extra $8,000.00. We’re also fair and respectful of cooperating brokers. Essential Real
Estate never collects a higher commission rate than the owner pays to the Buyer’s Agent. Ours
is not a discount commission business model. The money that could be used to pay real estate
commissions is available to be earned by cooperating brokers. When the quality of an offer is so
good that it blows away the seller’s other options, the seller may pay more
commission in exchange for the superior offer. That’s good business.