Service Tier Based Commission Bids – Beneficial to Principal & Real Estate Agent

For Sale By Owner Vs. Discounted Realtor | Agentsdeal
For Sale By Owner Vs. Discounted Realtor
June 14, 2018

Real estate commissions indeed sound to be high; but yet most real estate agents don’t earn enough and many go out of business. Buyers (and even sellers) not having to pay for anything until they buy, often spend 100’s of hours over several months of “free time” of agents and don’t decide or know what they want, and sometimes even after that, don’t go with that agent. Many do not even realize that this significant “wastage” has to be made up elsewhere, as Agents also got to make a living and a certain hourly pay rate.


This leads to the phenomenon, that when a transaction actually happens, that wastage is built-in in high commissions of an actual transaction. If all buyers (and sellers) are incentivized that lesser and more carefully they use agent’s time, and agents were to get buyers and/or sellers who know exactly what they want and/are savvy enough, then the bigger their refund will be, agent may be more motivated to lower their commissions as that necessarily does not reduce agent’s hourly pay rates.

Service Tier Based Commission Bids | Agentsdeal


Agentsdeal has a patent pending Service Tier based commission bid model to allow maximum value to principals and avoid any wastage of time for the Agents. To avoid the misused adage “you get what you pay for” in a discounted agent choice, we try to make it clear between the agent and principal upfront, as to what they expect in duties and with respect to those duties what commission discount/refund to expect. So bids can be invited for full service tier if principal is either not fully ready and needs help in definition and or is not as savvy, and alternatively bids can be invited for deeper discount tiers 2 and 3, if principal is savvy and depending on the level of readiness.

Based on the readiness and experience of the principal, the real estate agents can also target their bid for the service level desired by principal and save significant time. More detail reflects in a more complete specification and agents know they have a serious principal who spent the time in defining and also in opening bidding. That results in better discounts yet not reduced hourly pay rate for agents. As you see this new model, is designed and intended to be beneficial to both Realtors and principal buyers and sellers.

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