Here is a copy of a letter I wrote to Maclean's magazine regarding an article on real estate commissions. 

The subject of real estate commissions is far more extensive than anything Shelly Sanders attempted to investigate in her article entitled ‘Money for nothing, lawn sign for free’ (Real Estate Reality, Jan 7) and the list of incorrect assumptions in the article is lengthy. 

To begin with, describing any top agents marketing skills as 'tossing the dice' immediately suggests the author did not take much time researching what it takes for successful real estate agents such as Robert Greenberg to be in their position.  While I have never met Mr. Greenberg, it would appear his ‘high end’ clients are very happy with their experiences or I doubt he would be so successful.  Most successful realtors rely on past clients, friends and family for their referrals and NOT through unscrupulous dealings, shady business practices or over-charging.  

Secondly, Ms. Sanders states that homeowners are unaware of the various commission structures offered to the buyers agents.  This information is readily available to any homeowner in British Columbia by contacting any real estate office. Even the buyers themselves must also now initial the contract to acknowledge and approve the buyers commission so that everyone involved in the home purchase is aware of each commission unless they fail to read the contract. As a point of interest, there are several flat fee services in B.C. where the agent is paid whether the home sells or not so any motivation to sell the home could be reasonably suspect. 

Finally, not once did Ms. Sanders mention the most important skill that successful and experienced realtors possess; the skill of real estate negotiating.  Virtually all successful realtors, most of which are percentage commission-based, work with a great deal of money ‘on the table’.  They are paid to ensure that the homeowner does not succumb to bargain hunters, high pressure tactics or rash decision making which could cost them thousands upon thousands of dollars, or, as in the case of the high end buyer or seller, even hundreds of thousands of dollars.  Ms. Sander’s argument that a great many ‘high end lawyers’ would charge less is pointless since most lawyers are neither salespeople nor are they real estate negotiators.   

There is room in the North American real estate market for all the various ‘percentage’ or ‘flat fee’ based real estate offices but to suggest that one is far superior to the other through inferior researching fails to properly inform Maclean’s readers of the facts. 

Tom Everitt

www.thinktom.com

Dexter Associates Realty