Real estate commissions are typically 6% of a homes selling price and paid by the seller. The agents involved split the total commissions, typically 3% to the listing agent and 3% to the buyers agent. So on a $500,000 house each agent walks away from the transaction with $15,000 in their pocket. Now of course traditional agents who claim they NEVER discount and charge the full 3% will tell you that they deserve every penny because of all the time they spend w/the client, how much they spend on marketing, how much they have to split with their broker, etc... They actually practice overcoming objections to commisisons at their meetings - I know, I've been there.

But tell me, in this day and age, here in the Pacific Northwest, how much time do you really spend with your clients? Most people that I work with have already done much of the research online & often times simply give me a list of homes they want to see - how hard is that? But of course - I'm biased because I built my online brokerage around this very business model. I recognized some time ago that agents were no longer perveyors of information but simply providers of a service. The information is already in the hands of the consumer - we just need to help them finalize their search and get from contract to close. This is why I always provide a closing cost credit out of my commissions to my Buyer clients and discount the commission I charge my Seller clients. I think the 6% commission structure is outdated but again - I'm obviously biased.

So - let me ask you - how much do you think real estate agents should charge?