Do You Accept Below Market Commissions?
(Just Kidding)

Ethics 101... “We do NOT accept above or below market commissions.” That's how one broker responded to Tuesday's Dispatch, Is It Ethical to Pay a Higher Commission? (Oct 3) Hmm.

I've never thought that accepting a reduced commission might be unethical -- except in the opinion of other brokers unhappy with a "discounter" in their midst. In fact, the implication that there might be a "market" (or "standard") commission would catch the attention of your local district attorney. Oops. (All commissions are negotiable!)

Of course, the problem is not that real estate firms do not have "Canons of Ethics," "Core Covenants" or "Standards of Business Conduct"(HP!). Almost every company publicizes its strong ethical beliefs. The problem is executing the commitment.

Another broker boasted of his company's commitment to audit "every transaction after the close by contacting buyers and sellers to determine the level of satisfaction... I think that proactively contacting principals after the sale ... sets a higher standard than simply offering a place to lodge a complaint. Don't you?"

Actually, no. Measuring client satisfaction is not the only metric for measuring the quality of your service. What about people who never close a transaction? You might actually learn more from them than from successful clients.

Another reader writes, "Brokers representing buyers are ill advised to accept an incentive from the seller. The reason is that the buyer will, upon discovering that fact, wonder if the broker was really acting in the buyer’s best interests; thus, a perceived conflict of interest emerges."

No matter the debate, "The proof is in the pudding," another subscriber argues. "How many complaints have been made? How many have been investigated? What have been the findings? ... People perform according to how they are measured."

-- Peter Pike