Real Estate Commissions

The Sherman Antitrust Act of 1890 essentially makes it illegal to price fix.  This means there is no “set” rate for commissions.  This includes all industries in the United States including the real estate industry.  An example would be that competitors cannot come together and say “let’s charge this rate and say this is it….no negotiations”.  Commissions are always negotiable.

Real Estate Firm’s Business Models

There are many real estate firms across the Country.  Some are very large firms with over 100 agents and some firms are smaller with 20 or less; some firms are a ‘one person firm’ like my own.  Different firms have different business models.  Some may charge a certain amount to list your home, some may charge a flat fee, and some may offer an “entry only” business model, which means they will list your home on the MLS, but you, the homeowner, are responsible for all other matters with the transaction.  It is up to the consumer to choose which firm and business model they prefer.

Sliding Scale Commission Structure

As real estate values have risen sharply over the past 5 years, Stu Barnes has introduced a commission structure that is aimed at helping sellers keep more of their equity when selling their home.

A sliding scale commission structure consists of a low commission rate model that gets lower as the home values rise.  So for example, a $600,000 home will have a lower commission rate than a $300,000 home.  An $800,000 home will have a lower commission rate than a $600,000 home.  This is Full Service Representation.  There are also no hidden fees or “transaction charges” in addition to the agreed upon commission rate.

If this interests you, please fill out the form below and Stu will get back to you quickly.

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