What's the Deal with Low Commissions on Open Listings?



Thinking about a career in San Diego real estate sales? If you're a current sales professional looking to control your own income and success in a new industry, or you're an existing real estate agent who needs more help to reach your goals, email me today for a private San Diego real estate career consultation. I'll share with you what a sales career at Keller Williams looks like, as well as the great income you will earn helping San Diego homeowners sell and buy homes in our greater San Diego County area.

Many agents have been coming to us and asking what's going on with open listings. Agents on the selling side are offering unacceptably low commissions - which means many of us don't want to bring our buyers to the home.

Our market is currently appreciating, though it is soft in terms of units. Because of this, sellers are under the impression that we don't bring much value in these conditions. This is simply not true.

What we've seen is sellers listing with agents for a set price, then refusing to cooperate with the agent that brings the buyer's broker. They do this because if they guarantee the cooperating commission, that broker would be on the hook for it. How can we connect buyers with these homes and still get paid?

First, you need to use a buyer representation agreement. This way, you can show your client every single home, pay the fiduciary duty to them that they're hiring you to do, and you can still get paid. The great news is the seller is usually willing to pay your commission, which you can add in as part of your RPA or purchase contract as a buyer nonrecurring closing cost. Remember, you can not make your commissions a part of the contract, it must be called a buyer non-recurring cost. By doing so, you get your commission and the buyer gets the home they want. 

If you have any questions about this topic, we're always available to chat. We look forward to talking with you soon!