We are okay with 5% or more commissions when you sign a listing. It should only be less than 5% if you are a dual agent on the transaction and representing both the seller and the buyer. That exception can be written into the listing agreement. The total commission will still be 5% on the listing but you can write in an exception for a dual agent circumstance.
For example;
“Commission is 5% but it's 4% if the home is sold personally by the listing agent.”
This language can be written onto the listing agreement. Make sure you put “listing agent” not “listing office”. We don't want to offer out less commission to our own buyers agents. So if you take a 5% listing and offer out 2.5%-$250 and another agent sells it in our office the commission is still 5% total.
For all listings that are lower than 5% you need to get broker approval before taking the listing. So please call me at 908 868 2178 and explain the circumstance on why you need approval for lower than 5%.
This should be a rare circumstance. For example, a builder that is giving you more than one listing.
It should not be the norm.
Double ended transactions like FSBOs that have not been listed and you are bringing a buyer have a minimum 3% commission. If you are bringing a FSBO a buyer you should not be charging less than 3% commission total. If you list a FSBO you should list at least 5% and charge 4% if you sell it yourself.
On primary residences or your own personal investment properties the minimum listing side of the commission is 1% and you must offer out a minimum of 2%-$250.
If this was not previously clear we apologize. We will be adding it to the onboarding process as well as adding a video to the Getting Started section of SignatureCamp.
Do not worry about any listings you already signed up but moving forward please note anything less than 5% must get approved.
Remember when your commission is the issue there is an absence of value that you failed to communicate properly to the seller. We must show the value we are offering, not take the path of the discount broker and simply lower commissions. I get we have competition but lowering your commission is not the answer.
The more commission you get the more you can offer as far as media, marketing , and exposure for that listing. Like I said if you have a special circumstance and need to get that approved call me and we will discuss.
I get some of you might not like this but we have to have set standards internally and make sure we are not communicating different messages to the public.