{"id":2822,"date":"2008-03-24T15:03:58","date_gmt":"2008-03-24T22:03:58","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2822"},"modified":"2008-03-24T20:14:23","modified_gmt":"2008-03-25T03:14:23","slug":"commission","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2822\/commission\/","title":{"rendered":"Commission"},"content":{"rendered":"

There were a number of interesting articles last week regarding the value of a real estate agent.\u00a0 Essentially asking the agent to justify their commission.\u00a0 I know it got heated up over on Active Rain and there was some discussion on AgentGenius as well.\u00a0 Here at\u00a0BHB\u00a0we enjoyed\u00a0two very good posts.\u00a0 You can read\u00a0Brian Brady’s post here<\/a> and Barry Cunningham’s\u00a0post here<\/a>.\u00a0\u00a0I disagree with both of them, which is all the more reason to recommend you read them.\u00a0 That and the fact that they are both very good reads.<\/p>\n

Let’s Clarify the Question<\/strong>
\nFirst things first: the timing of the whole “justify your commission” question is counter-intuitive.\u00a0 It is coming up a lot lately, yet one\u00a0would expect clients to question commissions when home sales are rapid and appreciation\u00a0high. During those periods it appears\u00a0simple to sell a home but, probably because of the prices being greater than the seller assumed, we rarely hear this conversation.\u00a0 Yet times like the current, when homes are not selling and people are most in need of a professional agent,\u00a0you get the most questions about commissions.\u00a0 This has a lot\u00a0to do with the fact that they are making less money than they expected.\u00a0 So let’s start by clarifying the true nature of the question.\u00a0\u00a0It has little to do with the agents’ value and everything to do with the clients’ profit.<\/em><\/p>\n

Also, the question of value is directed primarily to the listing agent.\u00a0 There are some who will question the selling agent about their commission and they will do so regardless of the market.\u00a0 But for the vast majority of clients the selling agent has very little to do with this conversation.\u00a0 Why?\u00a0 Because the selling agent’s commission is already loosely tied to the market\u00a0and so a function of supply and demand more than intrinsic value.\u00a0 When\u00a0homes are moving quickly and inventory is small, the seller and the listing agent discuss what to pay the selling agent and often arrive at\u00a02.5% or even 2% because\u00a0there is no\u00a0demand to pay them more (supply of buyers is high).\u00a0 When the market is slow like it is now, we begin to see the seller and listing Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

There were a number of interesting articles last week regarding the value of a real estate agent.\u00a0 Essentially asking the agent to justify their commission.\u00a0 I know it got heated up over on Active Rain and there was some discussion on AgentGenius as well.\u00a0 Here at\u00a0BHB\u00a0we enjoyed\u00a0two very good posts.\u00a0 You can read\u00a0Brian Brady’s post […]<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[114,115],"class_list":{"0":"post-2822","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","7":"tag-commission","8":"tag-listing-presentation","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":13240,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13240\/at-what-point-does-an-agent-become-a-criminal\/","url_meta":{"origin":2822,"position":0},"title":"At What Point Does an Agent Become a Criminal?","author":"Sean Purcell","date":"September 15, 2010","format":false,"excerpt":"I wrote an offer for a young couple who wished to purchase the home they were renting.\u00a0 The buyer and seller had already discussed a price of $400,000 before agents got involved.\u00a0 (The seller thought it wise that both parties be represented, which is when I came into the picture\u2026","rel":"","context":"In "Dirty Laundry"","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2010\/09\/Hatton-MLS_Page_1-sm.png?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":2208,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2208\/a-consumers-guide-to-the-divorced-real-estate-commission-undermining-the-arguments-in-support-of-the-status-quo\/","url_meta":{"origin":2822,"position":1},"title":"A consumer’s guide to the divorced real estate commission: Undermining the arguments in support of the status quo","author":"Greg Swann","date":"November 11, 2007","format":false,"excerpt":"Part V: Why arguments for the current method of compensating real estate agents and against divorcing the real estate commissions must fail As I write this, the National Association of Realtors is preparing for its annual convention, to be held this year in America's playground, Las Vegas, Nevada. This year\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":576,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/576\/learning-to-negotiate-the-buyers-agents-commission\/","url_meta":{"origin":2822,"position":2},"title":"Learning to negotiate the buyer’s agent’s commission . . .","author":"Greg Swann","date":"October 27, 2006","format":false,"excerpt":"From my column in today's Arizona Republic, a familiar theme. The permanently linked version uses a somewhat longer version of the text. \u00a0Negotiate agent commission In past weeks, we talked about using the simple question \"How much do you charge?\" to negotiate a more reasonable buyer's agent commission. Buyers traditionally\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2818,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2818\/would-you-hire-yourself\/","url_meta":{"origin":2822,"position":3},"title":"Would You Hire Yourself?","author":"Barry Cunningham","date":"March 22, 2008","format":false,"excerpt":"There is an ongoing argument as to the value of a real estate agent in today's real estate market. It can't be settled with rhetoric and mantras. In order for there to be an effective resolve, the Realtor industry must reach out to the American consumer and seek to validate\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1993,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1993\/what-would-you-pay-for-a-real-estate-agent-if-the-commission-was-100-optional\/","url_meta":{"origin":2822,"position":4},"title":"What Would You Pay For A Real Estate Agent If The Commission Was 100% Optional?","author":"Dan Green","date":"October 1, 2007","format":false,"excerpt":"Radiohead is selling tracks from their upcoming album \"In Rainbows\" online. The price per track, according to the site, \"is up to you\".\u00a0 Fans can choose how much they want to pay for the MP3 tracks, or not pay anything at all. 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How much commission will I\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2822","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=2822"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2822\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=2822"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=2822"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=2822"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}