Discounting Real Estate Commissions in the Big Canoe Resales Market
An important part of all real estate sales is the amount of commission paid by the Seller. The commission is broken into 2 parts; the selling commission and the listing commission. If the listing agent sells the home they earn the entire commission. If another Agent sells the home, the commission is typically split 50/50 between the Listing Agent and the Selling Agent. If the total commission is 7%, then each agent gets 3.5%.
Competition in real estate today has caused commissions to decline. Some companies providing discounted commissions may only offer limited service, but many also offer full service. Other than being willing to work for less, I don’t see a whole lot of difference between the discounters and the so called “full service” brokers. There are good and bad in both groups.
One interesting trend we have seen in Big Canoe is discounting the Selling commission. This is a mixed blessing because while it can save the home seller money, it may also slow traffic to their listing. The fact is, agents do look at how much the selling commission is, and a reduced commission is definitely not an incentive. I sell everyone what they want to buy and happily shake hands afterwards, BUT I do check every listing for selling commissions. It does not discourage me from showing, but on the other hand it does not encourage me to show a listing. If this is something your agent has suggested, it may be worth further discussion to ensure that you are encouraging other agents to show your listing.
IBA Mountain Homes has a maximum of 5% commission on residential listings. From day one, IBA has consistently and aggressively marketed their homes with a TRUE discount philosophy. We always pay the selling agents at least 3.5%… ALWAYS. This means that IBA takes the discounted portion. Worst case scenario is that another agent sells one of our listings! This is a GOOD thing!! We are FULL service brokers! We answer our phones, emails, have the most agressive marketing of any agent in Big Canoe, and have a proven track record. Our sales speak for themselves.
- Karin Elliott
- (770) 655-4303
- kelliottiba@tds.net
- IBA Mountain Homes Advertising and Variable Rate Commissions
