Let’s talk about commission…
Should an agent be entitled to charge commission if they sell a property for below the estimated range that they give a seller? In short, Absolutely NOT!
Real estate is a performance based industry, so why should an agent be entitled to any commission for over promising and under delivering?
There are far too many agents who intentionally overestimate sales prices to win business.
Why? It helps them win the listing and they get paid regardless of what price its sells for.
Sellers should expect that when they meet with an agent that they’re receiving honest & professional advice on how to best sell their home without the threat of being mislead and deceived by the promise of a high price.
Only when there’s accountability will the deceptive practice of over pricing stop.
Change needs to start from the top.
The Real Estate Industry needs to get serious about stamping out bad practices and improving the professional standards within our industry, starting with accountability on agents to be more transparent and honest.
The Real Estate Institute should enforce on all of its Agency Agreements that an Agent isn’t entitled to commission if they sell a property for less than their estimated 10% range on the agency agreement.
This would clean out the cowboys from the industry and allow the honest and professional agent to provide a more honest, open and transparent experience for sellers.
What are your thoughts? We’d love to hear any suggestions from you of how to improve our business and industry. Please leave a comment below.