Real Estate Boards across Canada are threatening to leave C.R.E.A in part over a recent decision made that allows fsbo listings on Realtor.ca®. Many feel that REALTORS® are overpaid. For some the cost of selling their home is equivalent to 6 months wages! People often forget the risks an agent is taking on when agreeing to sell a home. Agents for the most part do not charge a fee for service basis rather a commission which is to be paid out of the proceeds from sale. No Sale, No reward. If only people knew the amount of man hours, risks involved, stress levels, costs, liabilities and perseverance, required to sell a home. To think that a standard commission for everyone would be an easy fix to the problem is ridiculous to say the least. . Home prices have climbed considerably over the years. Salaries have not risen as dramatically. People therefore feel the service provided is not worth the monies Paid. Although the cost of doing business has risen dramatically and those costs are all paid by the REALTOR® whether he gets a sale or not, still people feel that the price to be paid is too high .
Many who feel that REALTORS® are overpaid have never sold or even bought a home without one. They’re the ones who need to walk in the REALTORS® shoes or spend a day in the life of a REALTOR® .
If there is one absolutely true fundamental flaw in the Real Estate Industry today it is that traditional so called full service brokerages/firms/ Real Estate agencies dictate the amount of commission their representatives much charge ! .
In maple ridge we have many independent 1% agents working in the field. Those agents are working for commission that is more affordable than the status quo. The issue of Commission’s whether 1%, 2% or 7% plus 3.5% reminds me of a weed that has grown into a large field of thistle Bush. Real estate Offices should simply allow the agents working within them to charge a commission deemed appropriate between them and their clients. Real estate brokerages should not be dictating the amount of commission that their agents must charge. The fear in that is it would create a more level playing field and that would mean market share would be spread out more evenly amongst agents. This is exactly what the upper echelon of real estate agents fear the most for it would mean fewer trips two the Bahamas, less dining out and they may even have to skip a few golf tournaments. Oh my god now we can’t have that can we.
The REBGV has a duty to protect it's membership and although faced with many complaints about REALTOR® malpractice it must move cautiously and slowly when trying to affect a change for the better.
A REALTOR® should not have to charge the standard commission simply because that is what everyone else is charging. They should be allowed to work for commission they feel is comparable to the service and or the value statement they provide.
Another way of looking at it Might be the more business one has already the greater commission one must charge. One with less business to take care of should be allowed to work for a lower commission with full cooperation from all. A better way of looking at it could be those who have a great deal of business already should charge a greater rate and those with less business to take care of should be allowed to charge a lower rate with full cooperation from all.
REALTORS® should not be forced to charge a commission other than what is agreed to be appropriate between the REALTOR® and his client. All REALTORS® are not created equal and only the REALTOR® knows what his or services are worth. Most people don’t know that REALTORS® within an agency must all charge the same commission rate and that simply does not make any sense. The way things are now a new agent in the business starting out completely on their own has a zero chance of success, the odds are so overwhelmingly stacked against them that many no matter how well educated the