Am I crazy but isn't a violation to discuss commissions? Splits may be another thing, but I am not even sure about that either. I know we are all incognito, but still, come on, how do you know someone here does not work in the same firm?

While it's an anti-trust thing to collude w/another agent/broker and say we're going to charge X% for a particular service, and please correct me if I'm wrong, it's not to say what one angent/broker charges for a particular service.

But that didn't even cross my mind when I read the topic header. What I immediately thought of was different business models, traditional and non-traditional brokers, and the different choices available to consumers. If we could get a good discussion going about different companies and what they offer, without it becoming some this company sucks thread, well that'd be cool.

That's right Katie.
I don't think we will ever need to mention any company by name. And we won't be talking about what we charge in commissions and fees.

It's not illegal to talk to each other about the commission you charge; the problem is usually, that some agents will say “I will not do it for less than xx%”, and others will chime in, therefore making it seem like collusion and an anti-trust issue.
That’s why it’s best not to even go there and let each agent/company decide what they have to charge for their service to be profitable.
I agree 100% with Katie’s 2nd para. and I don’t know if this board can police itself to facilitate a reasonable discussion.

Wouldn't it be great if we could keep this together, and not end up going nuts about a certain company?

I'm with a traditional company. But I do see the value in different ways of doing business, both for the consumer, and for agents.

Most agents I know avoid the commission topic altogether. Some people are sue-happy and you never know who is listening so they can make a big deal of things.

Maybe we could change the topic header to "business models" or something, instead of having to do with commissions? Cuz like I said, I really want to know about the different types of companies out there. I would never hesitate to recommend that a client at least check out another company, if I thought they could benefit from their services.

It's funny how everyone is afraid to talk about commissions. Could it be that commissions really are fixed? This fear that's instilled in agents helps perpetuate this fixing of prices.

One of the most fundamental decisions that any business must make is establishing the price it will charge for its products or services. The Sherman Act was created because businesses were “colluding” while determining what prices to charge for their products and services.

Real estate brokerage firms are no different than any other type of business. Each must establish the fee it will charge for professional services rendered to clients. However, antitrust sensitivity in the real estate arena is high as it involves housing issues which the government, at all levels, looks on with constant scrutiny.

Although real estate brokers vigorously compete in the marketplace, they differ greatly than other businesses. They also openly cooperate with one another as subagents, buyers’ agents or even as non-agent "transaction brokers" or "facilitators," to identify a ready, willing and able buyer. This dual tradition of competition and cooperation presents opportunities for antitrust misconduct almost on a daily basis. This means that real estate brokerages and professionals are under a microscope, and any anticompetitive conduct is likely to be detected and prosecuted.

Price fixing can be in any form, other than commission rates, such as conspiracies to fix the length of a listing, the type of listing accepted (exclusive right to sell, exclusive agency or open), or the formula upon which compensation will be based (flat fee, percentage of the sales price, or a variable percentage depending upon the sales price) also may be per se illegal. It can also involve not only the prices any firm charges customers or clients, but also the prices it pays for goods and services such as fixing compensation to a cooperative broker for bring in a ready, willing and able purchaser or tenant.

I believe that the policy of NAR is that real estate professionals should never discuss or reveal their intentions concerning fees or other competitive business activities with or to competitors.

In our area we are not allowed to discuss commissions as this is construed as price fixing, even discussing on this board is considered a serious issue. We do not fix prices or commissions, if you do then that is your problem.

I'm not saying that you or anyone else as an individual fix prices. Commissions for the industry, as a whole, have been set for a while. I advertise my commission rates in most publications and I'll discuss it with anyone. Why should I worry? My advertised rates are lower than the "norm". If anything, advertising of commissions creates a more competitive environment where the consumer is the benefactor.

It's not a problem to advertise your rate or even tell everyone. The problem comes when agents get together and decide to fix their prices. I was in a class and a *broker* who had been in the business for 20+ years said, "I think we should all charge one fee. We need to run these discount guys out of the business"...you should have seen the terrified looks on our faces.

We immediately stopped the discussion and told him he's suggesting price fixing AND boycotting, both of which are federal offenses. We couldn't believe he'd suggest such a thing and recommended he take/re-take the ethics courses.