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Good morning Charles. Not a chance when it comes to real estate, but on the mortgage side, the fees charged are regulated.
No sir not a chance.
If an agent has this problem with broker's control on the listing fee, I would recommend moving to a different broker or take the broker's exam. Any broker doing this would hurt the agents negotiable leeway as an independent contractor (Reasonable minimums are fine).
No. That is one of the primary reasons I became an independent broker. I love the flexibility to price my listings according to seller need, projected ease of the sale, and future transactions with the seller.
As a QB I get a set % and do not get in the business of what my Agents list for.
To a degree, they do. The brokerage I hang my license at, Tierra Antigua Realty is not a discount brokerage, our co broke % needs to be a certain min number. We may present the option of variable rate, if we happen to bring the buyer on the transaction. I have no problem with it, and been at the same brokerage my entire career in real estate (8 years).
No, unless the criteria is spelled out in your independent contractor agreement. Even at that I would find it very much like skating on thin ice if they did.
Nope. I pay them to work there. I can charge what I want. Have I ever sold one for free, yes. Was it necessary? Of course. And there is an 80 year old couple who are at peace now because they are safe and have some money in the bank.
No. because the agent is the one that sellers are sharing their personal and financial info with, and their payoff amounts. Sometimes commissions must be reduced to avoid certain situations, like a short sale for example, or sellers have no cash on hand to bring to settlement and will be netting close to zero on the sale.
our brokerage does not control that.... we can sell a home for nothing.... we don't but we could...
That response will become crystal clear.
Why? Because it will cause a segment of the homeowner population to be abandoned, unable to get professional services.
But the broker will claim by sustaining a minimal fee the cannibalistic nature of independent contractors will be abated and a sustainable income could be achieved.
Let there be no doubt, an altruistic nature is not what motivates a broker, it is MONEY. The goal is to shore up their revenue. There is transgression underway, wearing the suit the broker believes can fool the sheep.
I am on the side of the independent contractor approach - we are independent contractors and can charge what we should to move our business forward. A broker can set minimums - I think - and if as an agent I want to go below that - then I still owe the broker his/her cut.
No, they shouldn't. I sign an independent contractor agreement with my firm annually. To me that means I'm independent and get to run my business the way I need/want to as long as I don't break any laws.
They can set standards of practice.
No, not if we are independent agents. Might be time to find a new office?
Charles Ross Most definitely! Agents often forget that all listings belong to the broker therefore, they should develop an office policy and control what is charged. The broker is responsible for and accountable for everything an agent does.
Yes, but it depends what you mean by control. I think minimum standards should be put into place and if the rate is changed this should be a conversation between broker and agent.
Most brokerages have minimums they allow Agents to charge but for extenuating circumstances you can ask for permission to reduce the commission.
Although Agents are independent contractors, at the end of the day your listings belong to the Broker. I'm a Broker, I have minimums but the Agents are free to charge what they want as long as it doesn't go below the minimum.