Are Lower Real Estate Commissions Inevitable?

Are Lower Real Estate Commissions Inevitable?

One of the most controversial real estate related topics right now is the downward pressure on commissions.

Tom Ferry said at an event recently he believes average commissions will decrease by as much as 60% in the next 5 to 10 years.

And when someone posted his remarks in a Facebook group the other day, it ignited a heated debate.

As I was reading through the comments, I found agents’ opinions fell into one of three groups.

Group #1: Lower Commissions Are Inevitable & You Better Evolve or Get Left Behind

Just shy of half the agents who posted comments believe downward pressure on commissions is inevitable. And, they embrace that fact as a much-needed change.

Comments from this group ranged from “agents are overpaid” to “you can’t stop progress” to “it’s great because it’ll help thin the ranks”.

Group #2: Lower Commissions Are Inevitable & That Sucks

I expected more agents to express disappointment, resentment, or anger over the prospect of decreasing commissions.

But, few did.

Some agents said they’ll make their money now and then retire when commissions drop.

Others said it’s time to invest in rentals and generate passive income.

Only a handful blamed “discounters” for bringing the industry down.

Group #3: Lower Commissions Are NOT Inevitable

This group of agents was the largest, but not by much.

And, their disagreement with the agents in the first two groups resulted in some interesting back-and-forths.

Broadly speaking, these agents made the following arguments:

• Lower average commissions don’t mean lower commissions for everyone

• Commissions are decreasing in large part because it’s a hot market; when the market shifts so will the downward pressure

• Reduced expenses because of advances in technology, plus housing appreciation, will mean greater commission dollars even if commission percentages are lower

• No one can predict the future, so saying lower commissions are 100% inevitable doesn’t make sense

And you know what?

I agree with this group.

I see no reason why commissions MUST be lower tomorrow than they are today.

More to the point, I believe agents who want a full commission can get it regardless of any downward pressure.

So, I have a question for you…

If I put together a free training on how to get a full commission every time, would you and/or your agents would want it?

If so, drop a comment below or shoot me a message.

I'm only going to make the training available to those who express interest, so your comment or message will ensure you're included when it launches.


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