Everyone is feeling the squeeze economically and we often get asked will we cut our commission – the answer is “No” and here’s why.

Who are the losers when commissions are cut? First and foremost the property owners…. the sellers. They mistakenly think that they’re winning by saving on commission but in reality, these sellers lose because the professional salesperson (the one who has the skills and ability to get the sellers the highest price) is reluctant to show properties that are at lower rates. This isn’t greed – it’s simply good business. Think about it, if we can’t negotiate a fair price for our services how are we going to negotiate a fair price for your property!

Who else loses? The buyers lose because they may not even get to see the home that could be right for them. If an agent doesn’t have what they buyer wants they are more inclined to conjunct with a full-commission agent rather than a “discount” or “capped” commission agent.

Who wins when commissions are cut? Nobody wins. As agents we need to sell properties to receive an income, and we need to get good prices for our sellers, which in turn increases our income. If the commission is capped what is the incentive to go the extra mile? The overheads in the real estate industry are quite substantial and we often wonder how the “discount” and “capped” commission agents manage. Then again … some of them aren’t there anymore!

Think about it, do you negotiate with your electrican, plumber, mechanic to reduce his fees?