The Real Estate Industry's Reluctance to Move Forward: A Frustration

It's mind-boggling that the real estate industry is still grappling with the concept of commission sharing. In a market that constantly evolves, clinging to outdated practices seems counterintuitive. There's no longer a pressing need to share commissions, especially in anything other than a buyer's market. In such cases, sellers don't need to entice buyers with additional incentives. Yet, the industry remains entrenched in its ways, resistant to change.

According to a recent article on Inman, companies are devising workarounds for commission sharing, reflecting an industry desperately seeking a path forward while seemingly unable to let go of the past. But the solution is simpler than these convoluted workarounds. It's about transparency and direct negotiation—core principles that should already be at the heart of real estate transactions.

Listing Agents: Simplify the Process

For listing agents, it's straightforward. State clearly that your seller is open to entertaining any and all requests for offers of compensation or concessions, and ensure this is reflected in the purchase agreement. If a buyer's agent inquires about compensation or concessions, your response should be unwavering: "Our seller is willing to entertain any and all requests for offers of compensation or concessions and to put it in the purchase agreement." This cuts through the noise and places the power of negotiation where it belongs—between the buyer and seller.

Buyer's Agents: Be Direct and Assertive

Buyer's agents, your role is equally simple. Include your compensation request in the purchase agreement. Whether you ask for the seller to cover your commission, request a concession towards closing costs, or even negotiate for that helicopter the seller owns, it's all part of the negotiation. This is the essence of what we do daily in real estate—facilitating transactions through clear and direct communication.

Avoiding Legal Pitfalls

All these intricate workarounds do nothing but complicate the process and invite more lawsuits. The Department of Justice (DOJ) does not want this complexity. While I often disagree with the DOJ's actions, in this instance, we need to anticipate the future trajectory of the industry rather than clinging to outdated practices. We should be "skating to where the puck is going, not where it is."

A Call for Industry Evolution

The real estate industry must embrace a straightforward, transparent approach to commissions and concessions. It's time to move past outdated practices and adopt a model that promotes clear communication and direct negotiation. This not only simplifies the process but also aligns with the direction the industry—and the broader economy—is heading.

In conclusion, it's not hard to grasp why commission sharing should be a relic of the past. The industry needs to wake up and realize that simplicity and transparency are the future. By adopting a straightforward approach, we can avoid legal entanglements and ensure smoother transactions for all parties involved. Let's stop complicating things and start embracing the future of real estate.

Robert (Bobby) Gideon II

NextHome Central Real Estate

Serving Shawnee and the OKC Metro.