On March 19, 2024, we decided to adjust our commission rates. A big reason for such a change has to do with the NAR (National Association of Realtors) settlement of March 15. It also has to do with our culture. We are a local, independent real estate company. We don’t report to big conglomerates of shareholders. We have total liberty to make our own decisions. Those decisions are based on the specific agreement with our clients.

Commissions are not dictated by NAR and are certainly not coordinated among different real estate companies or our local association of realtors. In New York real estate companies are licensed by the Department of State. In Connecticut real estate companies are licensed by the Department of Consumer Protection. Real estate companies can charge any commission they want to their clients. The licensing bodies do not tell companies how to set up their commission structure.

The 5-6% commission became “the norm” because that is what agents charge. We ask ourselves, why? The simple answer is because it works. According to the National Association of Realtors (NAR) The average Real Estate Sales Agent Salary in the United States is $46,014 as of January 26, 2024. It’s hardly what can be considered a luxury salary. The reason for that is because agents only get compensated if they sell a property. An agent can show up at the office every day, 7 days a week and end up working 70 hours a week for the entire year, but if that agent doesn’t close on the sale of a property, that agent won’t earn compensation. Similarly, an agent can list a property for sale, spend time, effort, and advertising for an entire year. If that property doesn’t sell, that agent won’t earn compensation. On the other hand, that agent would accumulate expenses that he/she would have to pay. That is a net financial loss. The 5-6% commission works because the income spread through the year helps even up the financial gains and losses the agent incurs. The 5-6% commission has been used as an incentive to sell a property. When an agent charges 5-6% commission that agent doesn’t keep 100% of the commission. Normally 50% of that commission is paid out to the buyer’s agent. It basically is an incentive to a buyer’s agent for bringing a qualified, willing, and able buyer.

Why is GioHomes offering to list properties for sale for a 3% commission instead of 5-6%? For one simple reason. Because we are confident that we can sell those properties while offering top notch service. We have been delivering exceptional service to our clients since 2006 because we put our client’s best interests first. If you are considering selling your property, give us a call. You will be happy you did!