Seriously? The Consumer Federation of America says only 32% of Americans know what REALTORS charge?

... Come on.

I would love to clear up any confusion anyone has about this CFA article reported on Inman News. Call me direct or DM me with specific questions. My cell is 240-695-2907.


Some of this article is on-point. However, I think the way the research is being presented here is extremely misleading to the public.


1) Yes, real estate LISTING commissions are typically between 5 & 6% of the sale price; however, it misleads the public because that total listing commission is SPLIT between the Listing Broker & the Buyer's Agent's Broker -- how it's split is yet, ANOTHER piece that is not known or shared with the Buyer's Broker. Only the Seller & the Listing Agent have the total commission amount. The total is shared with the Title Company when the property receives a contract. The Buyer's Agent/Broker is not privy to that information. The Seller must authorize in the listing agreement HOW it is split - but most Seller's don't pay attention to if whether or not the split is even. And the Buyer's Agent is not made aware of the total commission until they see the Preliminary Closing Disclosure - right before closing. The problem is -- members of the National Association of REALTORS are NOT allowed to interfere with a Broker's Listing Agreement - and even if the split isn't even (6% total commission; listing agent is only compensating buyer's agent 2.5% -- which is absolutely HARMING the seller -- listing agent making 3.5% in this scenario), NO ONE -- the buyer's agent, buyer, buyer's agent's broker, nor the title company rep -- is permitted to bring it up. The only person that can correct it is the Seller (or the listing agent).


2) Explaining "Commission Fees" in advance of seeing the property and providing a full analysis of a property and neighborhood is a form of price fixing. No agent or broker is allowed to "fix" a specific commission. It is negotiable - and it MUST remain negotiable for real estate to support the local economy -- the community -- small business -- and consumer spending within a geographical area.


Here's why:

Let's assume the author if this article learned through their research that the agents were freeling sharing commission splits... (and let's assume it was allowed). Now let's examine the LOSS to the PUBLIC if this were true: There are two comparable properties in the same neighborhood...

-- Property A has a listing broker with a "fixed" commission of 5% -- split 50/50, paying the buyer's agent 2.5% commission.

-- Property B has a listing broker with a "fixed" commission of 6% -- split 50/50, paying the buyer's agent 3% commission.


Now using what I just told you regarding #1 above... What happens next?


~ Now that we're on the same page, should I even bother addressing this:


When you seek the help of a professional CPA, Doctor, Psychiatrist, Orthodontist, Lawyer, or any other professional... Do you ask what they charge PRIOR to your consultation?

Even if you are {that guy} that must ask prior to allowing the professional to conduct a due diligence collection of information (preview the property & discuss your current situation -- i.e., divorce, bankruptcy, foreclosure, or just want to move up to a nicer house, etc. --)... if you were the professional being asked for your fees prior to having the ability to examine the patient, get a ortho X-Ray, or look at the financials for the last 24 months, etc. -- would YOU answer him/her? LOL I mean, seriously.


EXACTLY. Share your thoughts below!


So, my precious, curious, engaging Bookfaces, should I write a national media release to counter this organization's claim -- (which appears to be that ALL members of the National Association of REALTORS are SHADY, UNETHICAL, and for some unknown reason, 'keep their commissions a secret'??


I want your opinions before I decide... If the majority vote is to WRITE IT, I'll share updates on the coverage on our business page: Real Estate 1 Stop Shop... or you can ENABLE our Amazon Alexa Skill & Alexa will keep you updated.


(Here's the link to the skill: https://www.amazon.com/dp/B07XJPW9W7) Lab Coat Agents


Cross-Posting to REALTOR groups & our nonprofit organization (for supporting coverage) Communities We Love On, Inc.


#realtor #inman Cross-posted on LinkedIn.


REALTORS abide by a Code of Ethics... Maybe this organization should read it before blasting professional REALTORS and members of the largest professional trade association in the WORLD. Here's a copy of the NAR COE, should any of you like to take a peek:


https://www.nar.realtor/…/do…/2019-Code-of-Ethics-Poster.pdf




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