Richie Alan Naggar, agent & author  (people first...then business Ran Right Realty )

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Rainmaker
679,098
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

All commissions are Negotiable.  You do what works for YOU and your CLIENT.  IMHO

May 04, 2020 02:35 PM
Rainmaker
950,177
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

You're the master of your own business model. Steer it as you see fit.

May 04, 2020 02:44 PM
Rainmaker
1,190,233
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Hey, commission is negotiable so I guess whatever works for you. Our market is very steady so I haven't seen any need to change things up

May 05, 2020 07:11 AM
Ambassador
5,205,112
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

That is the beauty of this business - we can each select the model & fee structure that works for us. 

May 04, 2020 08:34 PM
Ambassador
3,100,710
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Your business, your decision Richie and I think question should be a Members Only, because of the subject matter.

May 04, 2020 04:33 PM
Rainmaker
5,772,353
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Follow your instincts.  My opinion has nothing to do with what you want to do. A

May 04, 2020 04:15 PM
Rainmaker
1,297,196
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

A sacrifice?

My thought is that discussing one's commission or the nature of one's commission or the way in which a commission is computed or anything else about a commission in and with a group of other agents seems very much like asking for an accusation of price fixing.

May 04, 2020 02:41 PM
Rainmaker
7,796,994
Roy Kelley
Retired - Gaithersburg, MD

Good luck.

This is not the best place for the discussion of commissions.

May 04, 2020 02:28 PM
Rainmaker
5,196,287
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

If you are in a position to determine the rate and not the managing broker, go for it if it works for you!

May 05, 2020 05:41 AM
Rainmaker
2,172,138
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I run my business keeping my eyes of my monthly income goal of no less than $10,000 . I don’t care how I have to get there (unit wise)

May 05, 2020 05:05 AM
Rainmaker
1,532,235
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

I ha e no idea what your question is but carry on wayward son. ❓⁉️🤣😂🤣

May 04, 2020 07:12 PM
Rainmaker
1,186,432
Peter Mohylsky, Beach Expert
PMI. Destin - Miramar Beach, FL
Call me at 850-517-7098

Interesting idea and glad it markets well, my suggestion is to include what efforts the flat fee includes. 

May 05, 2020 03:46 AM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

I'm unclear if you changed the question after posting it initially or if others are reading using a different lexicon.

The question I read, "Should a sacrifice enter into this subject" seems straight forward and where danger or threat exist is a puzzle to me....ohh,, wait.

Of course sacrifice should  not. I believe FAIR compensation has no relationship to sacrifice.

After all, the chicken makes a contribution to breakfast, the pig a sacrifice. I see NO comparison.

 

May 04, 2020 07:52 PM
Ambassador
2,679,949
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

      You do what works for YOU, Richie.  The only number or percentage amount that other Realtors see is the co-broke fee offered in the MLS.  It is none of their business what I get on my end.  

    Sacrifice?  Maybe for widows and orphans in distress.  Everyone else must pay to play!

  

May 05, 2020 08:46 AM
Ambassador
3,340,184
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

That's up to you, Richie. 

I know what I am willing to offer and do ... what others do is up to them provided they are following all of the COVID guidelines. 

May 05, 2020 07:33 AM
Rainmaker
1,840,606
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Change this to members only.

May 05, 2020 05:42 AM
Rainmaker
1,047,335
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

I'm not discussing commissions but fair exchange of goods/services for dollars. Make this Members Only so no one parses words here that doesn't understand intent.

You know . . . AZ has begun to open up. Our favorite restaurant/watering hole opens Monday. I have my first hair appointment in 2 months on Sunday. Yeah, my doll is working on Mother's Day and a Sunday! She's getting paid a premium by MY choice.
My nail chick got paid DOUBLE for a tip.
I FULLY EXPECT higher prices on food and drink . . . these people need to RECOVER and I will pay them what they are worth AND MORE, GLADLY.
These are SMALL BUSINESSES that got very little help and drive our local economy. Likewise, I am a small business. 2 of them. 

I don't imagine you are missing my point here.
WE HAVE ALL SACRIFICED ENOUGH. Let's get paid and share the wealth!

May 05, 2020 07:25 AM
Rainmaker
469,510
Dan & Laurie Pittsenbarger Team
Keller Williams Western Realty - Bellingham, WA
Lakeside & Coastal Single Family Homes

What did you have in mind.....goats, 1st born, virgins????

I'm actually unsure of the question but as others have mentioned, whatever you come up with that works for you and your clients is good with me.....as long as it's pro-survival across all aspects of life.

May 05, 2020 09:50 AM
Rainmaker
786,702
Brian L. Sirota, Esq.
Bristar Realty (Realtor/Attorney) - Orange, CA
For Solutions: (714) 501-7660

Richie:

It's a noble thought.  Two questions, though:

1.  Did part of your proposal include a percentage commission offering to the selling agent?

2.  Did the flat fee proposal win you the listing?

May 05, 2020 02:52 PM
Ambassador
3,160,589
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I think you do your business model and I'll do mine.  I have no problem with anyone wanting to take a different path if they feel it benefits them.

May 05, 2020 11:41 AM
Rainmaker
959,558
Mel Ahrens, MBA, Kelly Right Real Estate
Kelly Right Real Estate - Hood River, OR
Customized Choices for your Real Estate Needs

I have a different perspective on flat fees.

In short, I believe the flat fee should result in less compensation to the agent/broker due to the change in risk/reward with the client.

The traditional commission compensation model is high risk/high reward for the agent/broker. No risk and no cost to the seller if the transaction does not close. High cost to the seller if it does close. It is high risk to the agent/broker (no compensation plus costs incurred) if it does not close. If the transaction closes, a high reward is received for the risk incurred (by the agent/broker). It is a high cost for the risk avoided by the seller.

Flat fee compensation changes the risk/reward relationship. The seller risks their payment for services provided by the agent/broker. The agent/is being paid for his/her services. It is not tied to a closing. Hence, the risk/reward should be less for both parties. The seller has assumed more risk (paying a flat fee for services) regardless of the outcome. The agent/broker has less risk because they are being paid for their services; therefore, they should be willing to accept less reward.

Lawyers have hourly fees and contingency fees. The successful contingency fee case results in 33-40% of the award going to the law firm. The client is not at risk for compensating the attorney if the case is not successful. Sound familiar? If the client pays the attorney an hourly fee, the successful conclusion of the case results in the entire award going to the client (a generalization; I'm sure there are other compensation models in the legal industry too).

To me, what makes no sense is assuming the same risk for less reward (providing the same services for lesser reward while assuming the same risk). There has to be some reduction of the risk for a reduced reward; otherwise it is not rational.

May 05, 2020 10:51 AM
Rainmaker
761,033
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

Depends on the fee.  Hopefully you haven't sold yourself short.

May 06, 2020 04:43 PM