commission rates

Real estate is a saturated industry. You have probably noticed this by the daily assault of flyers your mailbox gets. Sales representatives are always looking for ways to become more creative to stand out and one of the ways they are doing this is by offering “free services” in their commission rates… but are you really getting something for free?

Let’s look at home staging, which is one of the newest free services being included in commission rates (you’ve likely seen hundreds of flyers or bus ads offering this). It’s great for the person who needs home staging, but if your house already shows well, you are getting the short end of the stick.

Let’s assume that home staging costs anywhere from between $2,000-$5,000. An agent who is making this offering has factored this as a cost in the commission rates they charge, but if you don’t need home staging shouldn’t you be entitled to a rebate in the commission rate since no actual cost has been incurred?

This is why we have chosen the fee for service model, where we separate our fees for our professional services and value added services. We know that many homes do require pre listing inspections, de cluttering services and full home staging, but we certainly aren’t going to make you pay for them if you don’t need them. Quite honestly, you should be rewarded by having a home that is ready for the market.

I don’t necessarily think the intent of sales representatives who are making these offers is to trick consumers into using them. Including these items in the commission rate they charge is offering better value than many other people in our business, but saying the service is free is misleading.

The only thing you get for free these days are smiles, maybe hugs and every now and again a small coffee at McDonald’s. In real estate, you are the one footing the bill for the “free services” in the commission rates you are being charged.

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