The real estate industry is facing significant challenges, but the fact of the matter is that change is healthy on many levels. It creates new opportunities - savvy agents will learn how to maneuver the new landscape, and many will prosper and flourish! In the new market, change needs to begin with ensuring that they conduct themselves ethically, professionally, and transparently regarding compensation and commission. The time is now for Realtors® to set their personal standard and commit to the highest level of professionalism in their daily business practices.

Realtors® must know the right and wrong practices regarding compensation to serve their clients and consumers best. Here are some best practices regarding compensation and commission.

Remember that compensation is always negotiable. Realtors® have an ethical obligation to always remain honest and transparent with their clients. Realtors® should use a buyer representation agreement to help them understand precisely what services and value they are providing and how much they will charge. They should also be completely transparent with their clients and explain how and why they are compensated for those services.  

Realtors® should also refrain from some of these common mistakes. They should not suggest to a seller that they must make a certain offer of compensation amount; it is up to the seller to decide how much, if any, compensation is offered. It's also incorrect to say there is a "set or standard commission rate." Realtors® must provide the best service for their clients and should never manually filter out listings by compensation when conducting unique searches. 

The truth is the real estate industry isn't closing its doors or packing up, and it's certainly not going anywhere. In fact, the industry contributes up to 18% of the nation's GDP. Realtors® will continue to assist first-time homebuyers in purchasing their first home. They will help create new memories for sellers ready to embark on their next chapter. They will be there to service their clients repeatedly, just like they have done for over a hundred years. 

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Samantha Minns
RWorld Content Writer
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