There has been so many questions regarding whether or not an agent is worth a 6% commission. Although I believe there are some situations that a Realtor may deserve a big fat paycheck they are few. I really don’t think most agents are truely asking for or get 6%. Here is how I see it.

Using a $100,000 listing price, an agent goes out to sign up a listing and when asked how much it costs they may say 6% of the sale price. What they are really saying is I want to make something from this deal, so if I subtract the $1,500(1.5%) my Broker would like to make from this deal and the $3,000(3%) that is shared with the selling brokerage that leaves me with a reasonable $1,500 (1.5%) for myself. So when an agent is getting upset with someone questioning a 6% listing, they seem to be arguing to save someone elses paycheck, not just their own.I have always thought it was not how much you made but how much you keep that makes the difference.

Here is something that has been working for me. First of all I own my Broker’s License, so I can make my own rules, at least on my half of the transaction.

I figured out how much I spend on average for each listing. That came to $500 each. Which is exactly what I charge them up front. I then tell them that I collect $500 to list the home and 3% at the time of sale and if another Broker sells it, I will pay that Broker the entire 3% and I get nothing more, so nobody wants to sell it more that me.

Sounds risky doesn’t it. But there is a method to my madness. Sellers are buyers too. I just saved them a boat load of cash and bought a ton of loyalty as well. The word of mouth advertising is saving me money and keeping me busy. So, who do you think sells them the next house? Me!

A nice little 3% commission. And since I am also a mortgage broker, who does the financing? Yep, that’s me again. Another 1.75% of the mortgage amount…. Ahhhhhhh!

So I am getting about 4.5% per deal all inclusive, my marketing costs are covered by the upfront fee and no negative talk about my fee structure.

Now I just added a little twist, if someone buys a house with me and finances it with me too, I make their first payment.

Sounds like I am giving money away but I have a great split arrangement with my Broker, he lets me keep it all.

Forget about being BIG and keep PROFIT on your brain.

If you think I am kidding about this check out these links Selling a Home or Hey Wayne make my payment!

PS: As another added bonus, It also drives the competition crazy!