Real Estate Commissions

Real Estate Market Goes Up Commissions Down, Criticism up

In a recent Real Estate Journal they comment on the paradoxical growth of commissions per sale, the huge influx of new agents, ripping off the public, and  the relative low overall earnings per agent. I comment here, filed under real estate licensees.

Comments

[bluskyem]

I am on a straight 70/30 split with my brokerage in Central Florida and have been in the business 4 years. I am not dis-
satisfied with that but I am on the verge of starting to do a number of 5 to 50 million dollar deals. I also have two junior partners that I give a total of 30% of my commissions to in exchange for 25% of each of their business and their assistance when I am busy. I really don't mind paying my partners but I feel that staying at 30% with my brokerage gives the brokerage a disproportionate amount of money given the fact that I am doing all the work and properties are generally not on the MLS and I am a larger contributor than people not doing this kind of business. Can anyone recommend a sliding scale formula or a dollar ceiling on the brokerage side that has worked for you or you feel is justified so I can try to get an different agreement in place other the 70/30 split on these big deals?

[Silversea]

Ref:The problem, is not increased costs of sale. The problem is that agents think a pumpkin dropped at someone's door will win the loyalty of that client. The answer, in my humble opinion, is to make the State Tests more restrictive. It is still way too easy to pass b.s. continuing education credits and State exams.

Exactly,and with the loyalty of the prospect or client decreasing every year,thanks to the crooked and greedy "Realtors"unethical behavior(ex.non-disclosure)and the ignorance of new licensees about relationship selling(takes months and years)and the ignorance of the NAR that treats its members as only a source of cash flow and entertains them with misleading surveys to keeo them paying the higher and higher fees.
In my opinion, the requirement for taking the R.E. License Exam should be a minimun of a two year college degree in a Paralegal Program or Real Estate Program and a mandatory intership apprentiship program(like the journeyman license)of 3 years under a licensed broker.That should eliminate 50% of the get-rich quick applicants and 80% of the incompetent,non-committed,and unemployed(non-sales oriented)types.

AL
Silversea0072002@yahoo.com
FL.R.E.Licensed
Palm Beach,FL.