Reduction of Real Estate Commission

Reduction of the Real Estate Commission – Not such a good idea!

We handle many real estate closings. as well as the disputes between seller and buyer when the closing goes wrong. We also see many disputes between brokers, co-brokers, sellers and buyers and any combination. But the one that is not so funny is when people list a home for sale and want to negotiate the brokerage commission down from the regular 6% to a lower fee.

These people think they are saving money and have the upper hand on the broker. This is not the case. They are going to have the last home sold. Most sales are based not on the listing broker but on a selling broker who looks up listings to show to a potential buyer. These same brokers want to make a sale, but their heart is really where their pocketbook is – and the last house they will show is the one where the co-brokerage is less than 3%. Heck – it shows it right on their MLS! Broker’s want to make sales and they want to make commissions. If you get no potential buyers – then you will not sell your house – no matter how nice it is. In fact, we have had this come up where a couple is divorcing and one of them is a RE salesperson who wants the listing so that they can share in the commission and get some money back. Other brokers steer clear as they know it is going to be impossible to negotiate with them.

What is the answer. Pay the broker their commission! It is the best advertising there is. If you get into a dispute with a broker, a seller, a buyer or have any problems with your closing and need qualified legal advise – including the drafting of the contract and the negotiations, call us and we will help.

If you have any question regarding this or any other legal matter our firm may be able to help you. Please contact Jupiter Legal Advocates at (561) 748-8000 or email us at for further information and assistance. We try our very best to respond immediately.

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Attorney William A. Fleck
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