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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: Tradelite who wrote (14520)10/25/2003 9:03:26 PM
From: Don GreenRead Replies (1) of 306849
 
Reality Check

I think what should happen and likely will happen in the coming years is a performance based structured commission scale. Where the broker earns a rising scale based on what they are able to actually sell the house for as it relates to the original asking price.

For example rather than having sellers have to sign a 4-6 month listing contract and have the agent suggest a higher than probable selling price to entice the seller. The agent only gets a 2 month contract and a higher commission, based on how close the final sales price is to the original asking price.

100 - 95% 6 percent
94 - 90% 5 percent
89 - 85% 4 Percent
84 - 80% 3 percent

This would encourage brokers to be more accurate to the sellers concerning listing prices and also let the brokers get their clients based on how well they can actually sell a house.

Don
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