Contemplating the Real Estate Commission

avatarthumbnail.jpgThere often are these little flare-ups in the real estate community which you, as a member of the general public, virtually never have to see. Mazel tov.

One recent ripple came through Trulia’s social media guru, who asked whether real estate commissions as a percentage of the sales price is a viable business model (ignoring the fact it’s been in play for decades) or whether a flat-rate system would be more suitable.

To me, it’s a case of to each his own. I charge on a more-or-less set percentage (there are some variables in play but it’s nothing particularly complicated.) For those who want to pay a different percentage or pay a flat rate, there are others in the Phoenix real estate market who will suit their needs. It’s a wonderful thing.

In an article I wrote yesterday for Agent Genius I side-stepped the question of how real estate agents are paid by switching the discussion to another industry, one twist you may not have considered.

And before you ask why I’m questioning how these folks make their living, I will ask you to contemplate this: why is my 1099 a public discussion? Shouldn’t my compensation be a private discussion between me and my clients?

I’m not running for public office. My income statements, to the best of my knowledge, still are confidential. My commissions aren’t being billed to the taxpayers at large or causing holes in the ozone. What I charge shouldn’t concern you unless you’re hiring me … it doesn’t seem like an appropriate conversation, any more than co-pays at various doctors and the billing rates of attorneys or even mechanics.

Still, people have a keyboard and an opinion so I guess asking for discretion’s pointless.

[tags]Phoenix real estate, real estate commission[/tags]

Jonathan Dalton

Jonathan Dalton is a 40-plus-year resident of the Valley and has been helping folks buy and sell homes since 2004. He can be reached at 602-502-9693 or info at