Every time the topic of commission or service is posted, the traditional agent is the first to condemn any other type of model ie. Flat fee, set fee, discounter and so on even though it is a direct violation of the code of ethics. Is it jealously? Is it lack of knowledge? Just what is it? I read posts that stated “the discounters are the first to go”. Where were you in 1976 when HUS was founded? Where were you in the 1990’s when the market was really flat? Is everything you know “hear say”? Did you ever work at a flat-fee service? I read all the BS about flat fee and discounters, but I haven’t read anything about alternatives. Why’s this? No one ever told you about them. I’m sure if they did, you would rank them as well. We as Realtors® are suppose to be intelligent, polite, loyal, knowledgeable and client focused, why don’t we act like it?
Oh, by the way I work with an alternative company, full service at 3.95% full commission that includes 2.5% to the buyer agent. Why 3.95%, because in N.Cal if the commission is higher that 4.5% the homeowner shows you the door. Don't forget that 6% of $400,000 is $24,000 but in Cal there are few if any $400,000 homes, most are over $700,000 and $42,000 is a bit much for any homwowner.

My first problem is with folks who INSIST that their methods are superior than others (both discount and traditional).

My other problem is when discounters INSIST that what is right for their market is right for the entire nation.

I have stated numerous times that discount and traditional models can co-exist.

We must make a few observations:

The increase in the # of discounters coincides perfectly when the RE market is rallying. For example, in FL, CA, DC, etc., you see a bigger market share from discounters.

In the markets that haven't seen consistent, double digit annual growth in RE prices, the amount of discounters as well as their market share is not as prevelent in areas that have seen this type of growth.

In Atlanta, the average price is @$250k. You see tons of discount listings under the average, but the higher you go above the average, the less you see discount listings. In the >$1MM range, there are hardly any discounters.

In N.Cal I have seen HUS, A2S with listing over 2MM and those homes sit but I don't think it's the discounter ot flat-fee service. I think that home owners are getting wise and use the internet more often than before. They are not dumb, what is 6% of 2mm, that's what they are looking at.

So, we southerners are dumb?

Greg; All due respect, no the southerners are not dumb. As you are well aware, all states are different, and yes, all agents are different as well. All I'm saying is that HUS and A2S deserve credit, after all they are the newer model and are growing faster than any other agency, at least in my neck of the woods. I don't know how many agents on this forum are discounters or flat fee/set fee as I don't read much from them. Have you?

I don't believe it for a minute.

I don't care what agents charge as long as they take care of the client and I don't have to pick up their slack. As long as the client is happy and the agent helps them meet their goals, fine.

I had a buyer call me this week and said it's "important" that I be flexible on my commission so they can save money on the purchase of a new home. I told them I can be flexible if we have a win-win solution, but taking money of out my pocket before we even decide to work together doesn't sound like a good start to a win-win relationship. I suggested they talk to a discounter or buyer agent who will rebate since my fee is based on my results and extra services. I can't afford to discount with the costs I incur, but maybe another agent can, which is fine.

Maybe for someone who doesn't know how to stand up for thier commmission. I work the Bay Area market as well, where avg is 550-650k and i charge 6%. If asked at a listing presentation if it's negotiable my answer is simply no. If they want to know why i'll explain, but me coming down on my commission after stating 6% shows that i wasn't confident in what i was asking to begin with.