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Real Estate Uncategorized


Honest Broker: Home, Hearth


The real estate industry has seen many changes over the recent years. The ability to sell properties using the internet and the many ways in which the consumer can bypass the traditional use of a real estate company has caused fierce competition between companies to cultivate clients. It has generated advertising campaigns for some real estate companies to list for 2%, or for less. Now on its face, the consumer thinks that if they hire that company, they will only have to pay 2%. However, this is where we need to dig a bit deeper.

For more clarity, if the agreed upon commission is 6%, each company would earn 3% or half of the total. How do real estate agents/companies get paid for the services they provide? The listing company earns their share by advertising the property, taking professional photos, negotiating the contract, and following up throughout the contractual period to ensure meeting all deadlines and mitigating any problems with closing being the goal. The buyer’s agent/company earns their share of the commission when they “bring” the buyer, negotiates the contract, and follows through with contractual deadlines, negotiates or mitigates problems or issues arising within the contractual timeline with closing the result.

When an agent gives a listing presentation, the commission charge is part of that presentation. The agent can take the listing at 2% and the client is informed that the buyer’s agent will also need to be paid and it would be up to the client to decide how much to pay them; 2.5% or 3%. The total commission paid would be anywhere from 4.5% to 5%. When a property is listed on the MLS, the commission is noted. Agents are aware how much they will earn if they show and sell that property. It is financially beneficial to the agent to show the highest commission properties first and incentivizes the agent. Therefore, the offer of 2% is only half of the equation, the per centage to the “other side” still needs to be added.

Is this advertising deceptive or just a way to get the phone to ring???     You decide……

Good Luck!

Diane Lott, Broker

Owner: Paradise Found Realty

*The highest compliment you can give is when you feel you can refer a friend…
  Hope to see them soon!

Paradise Found Realty, Inc. of Palm City



Phone:  954-294-5060

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