Speculating about why his recent blog post on real estate commissions “under siege” generated over 200 comments, Bradley Inman, founder of highly respected Inman News, asked readers if the existing commission structure had reached a “tipping point?”
Yes, ten mega-trends, some of which Inman identified,
have pushed the obsolete commission structure to a tipping point; but from the real estate consumer’s perspective, the commission won’t reach a break point until the traditional two-side MLS commission is “decoupled” — a recommendation the Consumer Federation of America first made fifteen years ago.
What series of actions are needed next to break-up the two-sided commission? That’s the discussion question asked by this 90 second video (which can be paused at any point), originally prepared for federal regulators but never officially submitted at the end of last year. The answer to that question will unlock billions of dollars in consumer savings annually, so comments from both real estate change agents and consumers are needed below, recorded on our readers’ line (617-661-4046), or sent privately to firstname.lastname@example.org.
The heated debate on Inman’s blog gives us the opportunity to update and expand our tipping point presentation before submitting it to the Federal Trade Commission and Department of Justice. In 2002 (before being acquired by giant NRT), DeWolfeDirect’s website read:
Unbundled Pricing brings innovation to the cost of selling or buying a home. Selling a home requires a certain investment, as does finding and buying one: equal tasks with equal expense. Curiously, traditional commission models require the seller to pay for both of them. We believe it would be more logical if each paid for their own part of the transaction, so we treat them separately (emphasis added). We also use a scaled
percentage model that reduces the rate for higher priced homes.
It is equitable, straightforward, honest, and revolutionary (emphasis added).
Anyone else agree it’s long overdue, and due time federal regulators make it — uncoupled commissions — happen?