John's Florida Real Estate Blog

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Everyone should have to work on commission!

Most people think that we get the entire commission and therefore get rich on even small deals. They have no idea how the commissions are split up and then the costs that are deducted from the small portion that we can retain. Try it on a $30,000 mobile home and see if you would work the weeks and months for that amount. Most would not!

How's that grab you, all of you free market proponents?

Commission based pay.  For everyone. The ultimate in free market economics.  In essence, put up or shut up.

My suggestion is bred from the frustration all of us who are on a commision based pay structure have with those who aren't.  Namely, BANK EMPLOYEES!

You see, we, the commission based agents, have a vested interest in making real estate transactions, ie. short sales, come to fruition.  They, the BANK EMPLOYEES, often do not.

We, the commission based agents, care about the clients we are working with and don't want their lives to be put on hold while awaiting approval on HUD-1 statements.  They, the BANK EMPLOYEES, do not.

And we, the commission based agents, have to handle the rage, disappointment and threats of canceling deals from our frustrated clients.  They, the BANK EMPLOYEES, do not.

So, I propose that our Capitalist, free market system, get a little MORE free market, and let's see if the cavalier, don't give damn attitude type BANK EMPLOYEES survive for more than a week in our world.

My guess is they'd starve.

That's my rant for today.

 

Please visit our website at www.ArizonaPremiereLiving.com for more information about Phoenix, Scottsdale, and Anthem AZ real estate.

John Elwell - REALTOR

CENTURY 21

Bill Nye Realty, Inc.

813-783-4444

Licensed in Florida

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Comment balloon 3 commentsJohn Elwell • May 29 2010 04:42PM

Comments

Absolutely  ... Where is the incentive to do a great job when you paid the same regardless of how well you do your job.  Great Post --- thanks for sharing

Posted by Troy Funk, Broker / Associate (Allison James Estates & Homes, Sarasota 941-957-3737) over 9 years ago

On listing presentations we are always make sure to take the time and explain exactly how the system works.

Sue of Robin and Sue

Posted by Robin Dampier REALTORĀ®, Hendersonville & Western NC Real Estate Source (Coldwell Banker King) over 9 years ago

That is crucial Robin and Sue. Customers need to know that the commission does not go to just one person. Even if we have the buyer AND the seller, our brokers want their cuts, and so do our franchiser companies. When a total commission is $3000 they think we are getting rich, until you start dividing and subtracting. That total soon falls below the $1,000 mark and LOWER. We need to do a better job of educating our customers.

Posted by John Elwell, You Deserve a Full-Time Agent, Not Reduced Results (CENTURY 21 Bill Nye Realty, Inc.) over 9 years ago

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