(the edited version of what’s above)

If you have to hire private security for your open house, you probably want to list it with a professional who has experience selling such a property: I’d bet the value of that property that such a person is not going to be working at one of the many discount brokerages that have sprouted in the area….just a thought.

Also, how many open houses require such measures? I’ve been to many and have yet to encounter a security guard (granted I’m not touring anything above $4million, so maybe I’m missing out on getting the evil eye from a glorified bouncer). However, I’m sure if a certain restaurateur had one at his house (before he pulled it off the market) a security guard would have been necessary to protect the owner’s feelings from being hurt by public feedback about his “taste”.

A question to full service (non-discount brokerage) agents and brokers: how much of the marketing cost will you cover for a property you are listing? For instance, if you recommend staging to improve the property’s chances of being sold in a shorter time, how much of that cost would you cover?

“Through talking to customers, former clients, and friends, they all begrudged the 3 percent listing fee that is usually charged. That’s why so many people try ‘for sale by owner’ without an agent,” Kim said.

That’s honestly why commissions are 100% negotiable: it just takes the client’s initiative to actually get a lower commission. Running with Kim’s idea of lowering commissions, one might ask: If you’re going all the way down to 1% commission, why not reduce it to half a percent? why not a flat fee? Wouldn’t sellers prefer to pay less than 4% in commissions? I’m sure they would. To be fair, most realtors really do earn their commissions: they take a pretty low percentage of the sales price and use it to cover their time, effort, and marketing costs–these are primarily placed on the backs of the listing agent, but there are costs that a buyers rep also incurs. The agents that don’t earn their keep really don’t stay around long (just ask the NAR about it’s recent massive drop in membership). When times are good in real estate, more people get into the business to capitalize on an upward phenomena. When times get tough, then it’s time to trim the fat.

If you have a great house (we’re talking spectacular, people would line up around the block to get it), you can probably mandate that all agents–yours and all the others out there–take a much lower commission. But it should really be up to you to set that commission. Any self respecting agent is going to take your listing, even if you say “I’m only gonna pay you 1%” for a few good reasons: 1. it gets his/her name out there, and associated with your magnificent property (hey, that’s the realtor who sold THAT house: he/she must be a great agent to get that listing); 2. if your house is such a great product, selling it is a slam dunk–money in the bank, and probably in a lot less time than a “fixer-upper.”; 3. they are going to make contacts with future clients and real estate professionals, and the sale of your great house will propel them to future sales and future clients. As the homeowner, you have the power to negotiate, just be fair and reasonable (no one is going to sell your house for nothing).

Ultimately, it’s not up to agents to set commissions. It’s up to the clients they represent. The market dictates the price of homes, and the market should also be allowed to dictate the price of commissions payable to realtors.

“We got 99.8 percent of our asking price. It was immediately proven that this model works for the Dallas market,” Kim said. “And we got two referrals from the client instantly because they were so happy with how it went. It was wonderful.”

What does that prove? It doesn’t prove the model works–that statement is just flawed logic. 1 trial run proving that a model works? Let’s pass that along to research scientists, I bet they would love to hear of what is essentially an experiment being proven fully on the first try. All this event proves is that these homeowners were asking a price that ready, willing, and able buyers were willing to pay 99.8% of. That’s it. Price your house correctly or below market value and guess what? Someone’s gonna snatch it up before the next buyer can get it.

The idea of 1% listing agent commissions makes me wonder this: If a listing agent is only getting 1% commission on their listing, isn’t is in their best interest to get that puppy moved ASAP, if not sooner? Rather than 3% to cover their marketing costs and compensate them for their time and efforts to sell the property, they are working with a much much smaller amount. It would likely follow that they can only afford to list that property (and be compensated in any way for doing it) for a much much shorter amount of time. Ever hear the phrase “time is money” ? So, what kind of pricing strategy would a 1% agent pitch to the hypothetical client?

The national stat is 9 out of 10 agents fail in the 1st 13 months. I’m ashamed that my industry does not have higher standards. Trust me - it is easy to get a license, and it is extremely hard work to build a long term, successful practise. We have too many part time, hobby agents running around clueless. I actually like the fact that the market has tightened - it will weed out the “wanna be’s”. I will time and again show a seller why I deserve their business. Bottom line: you can buy jeans at Walmart if you like, or you can get a better fit and a better jean at a more upscale store. Yes, it will cost more but it will also be a better investment!