Broker's Opinion

Opinion and comments on general real estate practices and activity in Colorado Springs.

Discount Commissions

Why is it that so many people think Realtors make too much and should, therefore, give buyers and sellers a break on their commission?  First of all, it is illegal to rebate money back to a buyer.  That could be considered loan fraud.  Secondly, a commission paid at the closing table does not all go into a Realtor's pocket.  It must be shared with the Brokerage, the IRS, any referring Broker, and the business expense occurred in either marketing a home or research to find a suitable property.  A commission is the sole income for your Broker and much be spread out sometimes, over several months if business is slow. 

Most importantly of all - you get what you pay for.  How likely is it that a Broker who is to be paid only a fraction of what she should earn, will go above and beyond to make sure your transaction goes as smoothly as possible and that all your questions are answered.  Would you insist that your Doctor or Attorney cut their fee?  Real Estate is a full time job and a very demanding one.  Please treat your Broker with the respect he or she deserves and they will do the same to you.


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