{"id":4348,"date":"2008-09-13T19:23:28","date_gmt":"2008-09-14T02:23:28","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=4348"},"modified":"2008-09-13T19:47:11","modified_gmt":"2008-09-14T02:47:11","slug":"some-days-its-not-worth-chewing-through-the-restraints","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4348\/some-days-its-not-worth-chewing-through-the-restraints\/","title":{"rendered":"Some Days It’s Not Worth Chewing Through the Restraints"},"content":{"rendered":"

In addition to our discussions here at Bloodhound, if you’ve been reading the blogs lately, the commission debate continues.\u00a0 Jonathan Dalton’s post on Agent Genius<\/a> has recently spawned a long series of comments regarding how agents are compensated.<\/p>\n

One comment (below) got me thinking,<\/p>\n

“… I fully believe that my service is worth 6%. Clients in my area seem to be less concerned with getting a \u201cdeal\u201d on their commission rate than they are with getting an EXPERT to work for them.”<\/em><\/p>\n

I am not questioning the agent’s value – it’s hard to debate that consumers want an expert. The issue I have with the comment is “I fully believe my service is worth 6%.”<\/p>\n

Why? <\/p>\n

What is the significance of 6%?\u00a0 As we discuss the issue of commissions, why are we stuck on a percentage of the sale? Why isn’t the number 10% or higher – or in some cases, lower?\u00a0<\/p>\n

In actuality, if you’re cooperating with a buyer’s agent, aren’t you really saying you’re really worth only 3%?<\/p>\n

Indulge me for a moment as I share a little story…<\/p>\n

In early winter 2007, I happened to represent a client in the sale of his 3-flat in Lakeview – highly desirable area north of Lincoln Park – the building generated solid rental income. I listed the property and generated 2 offers within the first 20 days on the market. The first deal fell apart due to an over-zealous inspector who told my clients the building was worth no more than land value, <\/p>\n

Pardon me, but you’re an inspector, not an appraiser. <\/p>\n

But that was the least of my problems …<\/p>\n

The second deal blew apart 3 days prior to closing. The zoning certificate was incorrect – issued by the city. Chicago stated that that building was a 5-flat. My client was thrilled – LOOK! We can now ask for more! Um – excuse me, but no. When he purchased the building 2 years prior, the city correctly issued a zoning certificate indicating that the building was in fact a legal 3-flat. <\/p>\n

The attorney and I discussed Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In addition to our discussions here at Bloodhound, if you’ve been reading the blogs lately, the commission debate continues.\u00a0 Jonathan Dalton’s post on Agent Genius has recently spawned a long series of comments regarding how agents are compensated. One comment (below) got me thinking, “… I fully believe that my service is worth 6%. Clients […]<\/p>\n","protected":false},"author":47,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[5],"tags":[223,531],"class_list":["post-4348","post","type-post","status-publish","format-standard","hentry","category-real-estate","tag-agent-compensation","tag-disintermediation","no-featured-image"],"jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1478,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1478\/separating-the-buyer-agent-commission-from-the-listing-commission-is-a-really-stupid-idea\/","url_meta":{"origin":4348,"position":0},"title":"Separating the Buyer Agent Commission From the Listing Commission is a REALLY stupid idea","author":"Russell Shaw","date":"May 28, 2007","format":false,"excerpt":"This is a continuation of Jeff Kempe's thoughtful post below. At first, I was going to reply to his post via a comment. But as I thought about it I realized there was way more I wanted to say. First things first: Welcome Jeff, Lani & Morgan! I'm delighted to\u2026","rel":"","context":"In "Dual Agency"","block_context":{"text":"Dual Agency","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dual-agency\/"},"img":{"alt_text":"thinkingcap","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2007\/05\/thinkingcap1.gif?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1283,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1283\/who-pays-the-buyers-agent-once-weve-divorced-the-commissions-we-can-stop-worrying-about-it\/","url_meta":{"origin":4348,"position":1},"title":"Who pays the buyer’s agent? Once we’ve divorced the commissions, we can stop worrying about it","author":"Greg Swann","date":"April 9, 2007","format":false,"excerpt":"Joke Number one: Q: If you came upon the Buddha in the guise of a hot dog vendor, what should you say? A: Make me one with everything. Joke number two: Q: Top Drawer Listing Agent, why do you charge a 7% commission to list a home for sale? 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Usually those calculations are just exercises with\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":3070,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3070\/im-in-business-to-make-money\/","url_meta":{"origin":4348,"position":3},"title":"I’m in Business to Make Money","author":"Sean Purcell","date":"May 8, 2008","format":false,"excerpt":"One of the best parts of BHB for me,\u00a0is taking the ideas and the round tablediscussions that happen here and bringing them to the street.\u00a0 (I must admit an occasional\u00a0guilty pleasure taken, when I use the knowledge I glean from BHB to steer and even dominate these discussions.\u00a0 I am\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":9816,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9816\/making-the-numbers-in-real-estate-marketing-add-up\/","url_meta":{"origin":4348,"position":4},"title":"Making the Numbers in Real Estate Marketing Add Up","author":"Sean Purcell","date":"September 22, 2009","format":false,"excerpt":"In a recent Bloodhound post about Twitter (only Brian Brady could write the third post in just over a week on the same subject and generate so many comments!) there was a comment on marketing numbers that so intrigued me I felt compelled to respond in a post rather than\u2026","rel":"","context":"In "Flourishing"","block_context":{"text":"Flourishing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/flourishing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1827,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1827\/the-odysseus-medal-a-challenge-to-the-mind-and-a-challenge-to-the-way-things-have-always-been-done\/","url_meta":{"origin":4348,"position":5},"title":"The Odysseus Medal: A challenge to the mind and a challenge to the-way-things-have-always-been-done","author":"Greg Swann","date":"August 20, 2007","format":false,"excerpt":"We had a lot of truly great posts this week. I'm not the kind to pick three posts for first place and six for second place, but I do understand the temptation. 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