With the real estate industry finally lowering commission rates after August 17, 2024, a battle is brewing among brokerages and agents to win business. For example, Sotheby’s has decided to charge 2% to the seller and 2% to the buyer—or even less—to stay competitive. Other brokerages will likely follow suit.

For individual real estate agents, there’s now a ceiling on how much they can charge a seller. However, top agents can still command incentive-based commission rates that might exceed 2% per side.

To do so, these agents will need to believe in merit-based compensation. The better a real estate agent performs for their client, the more they should get paid, and vice versa.

This principle aligns with the essence of capitalism and America, which is why there’s been controversy over Diversity, Equity, and Inclusion (DEI) initiatives. If a person is hired based on diversity but lacks the skills to

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