Selling Office Commission – 3% or more?

The slowdown in today's market will purge the fringe of real estate agents and force the resilient to improve marketing, processes, and salesmanship. One marketing tool gaining popularity is the adjusting of the selling office commission (SOC).

The slowdown in today’s market will purge the fringe of real estate agents and force the resilient to improve marketing, processes, and salesmanship. One marketing tool gaining popularity is the adjusting of the selling office commission (SOC).

The selling office commission is the fee paid to the Realtor who brings the buyer for your home. If you are a buyer, it is the fee your Realtor gets paid when they represent you in the purchase of your new home. In many cases this commission is 3% and is paid by the seller.

12019 SE 42ND CT, Bellevue, WA 98006

Tricia Anderson, of Coldwell Banker Bain, recently increased the SOC for her $1,108,000 listing at 12019 SE 42ND CT in Bellevue from 3% to 4%.

“My seller actually suggested it,” said Anderson when asked why she chose to raise the SOC.

“No surprise here, the market has been slow.  Realtors and sellers alike are beginning to think ‘outside the box’ to increase activity.  This is one ‘tool’ that I see increasingly being used in our market today.”

We asked Anderson for an example of how raising the SOC has helped sell a listing.

“The jury is still out on this one.  I think it would be tough to get true feedback from selling agents, as it honestly may not shed the best light on an agent to admit that a higher commission was a motivating factor for a sale.  Some may even suggest it violates the Realtor Code of Ethics.

“I did read a comment from one agent who put it like this,

On the mls there is a little section in there for agents it tells them how much they will receive in commission when they bring a ready willing and able buyer to the closing table for that house.  Do you think that if there are say 4 houses that fit my clients criteria and one is offered at 2% there are 2 of them at 3% and then there is one of them at 3.5%.  What order will I show those houses in????  You’re dang skippy I have to make money too.  I do not know which one my client will pick but when comparing apples I will pick the ripest one first.”

“Clearly this is evidence that raising the SOC can get the attention of some agents.  Part of my job as a Realtor is to get as much exposure to my clients property as possible.  I make no moral judgment on this, but reading comments like the one above leads me to believe that raising the SOC may increase traffic.”