Entry by Mollie Wasserman

In Inman: Conflict, Confusion and Risk in Real Estate Commissions

A must-read for all ACREs: new article in Inman Conflict, confusion and risk in real estate commissions.

Up and above the fact that the author interviewed yours truly for the article, (and actually didn't misquote me!), I think she does a really good job in bringing in lots of ideas and opinions on this topic.

As is the case with Inman, you need to read the article TODAY if you don't have a membership.  Let us know your thoughts.


A postscript to this article: there was one comment already left at the end of the article:

"I find it interesting that discounters offer rebates from commissions negotiated by full commission brokers. What would happen to their rebate scheme if every listing were a $3,000 flat fee commission to the cooperating broker. Losers!"

What this gentleman fails to see is that there would not be a need for rebates if we just charged for what we do!

ACREs, we have a lot of work to do!

Another interesting comments from Glen Roberts:

"When Buyer Brokers and Buyers meet and determine the compensation that will be paid the the work required for that particular buyer, and listing agents only negotiate for a fee to represent the Seller with preparation, marketing, and transaction processing, then many of the discount models will disappear.

Yes, the buyer will have to come up with more money to close, but that will be an easy model to account for by lumping the costs of agency, inspections, escrow and other closing costs into one financial package along with the loan amount.

When the listing broker and the seller quit determining the pay the buyer's agent will get, it will be a great day in real estate."

This gets to the heart of it folks - we need to de-couple compensation going to the listing and buyer agents - whatever that compensation might be.

Couldn't have said it better, Mollie!

Mollie, Are you permitted to republish YOUR atricle on Active Rain Etc? 

Problem is - it's not my article. The Inman reporter interviewed several people and Inman has strict copyright laws regarding reprint.

It would be fine if someone summarized the article on AR or perhaps used it as a springboard for a blog post but it cannot be republished verbatim.

For those looking to see Mollie and Inman in full, here is a link to someones site that posted the entire article. http://realtyconsul.wordpress.com/2011/05/21/conflict-confusion-and-risk-in-real-estate-commissions/

This page contains a single entry by Mollie Wasserman published on May 20, 2011 2:49 PM.

How to Choose an agent? was the previous entry in this blog.

What Realtors do for Buyers is the next entry in this blog.

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