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    You are at:Home»Finance»Real Estate»How real estate brokers are protecting commissions today
    Real Estate

    How real estate brokers are protecting commissions today

    newsworldaiBy newsworldaiAugust 11, 2025No Comments5 Mins Read0 Views
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    How real estate brokers are protecting commissions today
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    1. They’re reframing the language from “commission” to “professional fee”

    Let me tell you where this whole “professional fee” language started for me. I was digging into the details of the big Ketchmark antitrust lawsuit against NAR. If you look at what the law firm pocketed, it was a 40% contingency fee. That’s just attorney-speak for, “I get a cut if we win.” But notice what they don’t call it — they never say commission. Why? Because commission sounds salesy. Contingency fee sounds professional. It’s all branding, folks.

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    Here’s what really hit me: Attorneys get to charge 40% for basically negotiating a settlement, and nobody bats an eye because they call it a fee. Meanwhile, real estate pros bust their tails managing a transaction from start to finish, and the public thinks we just show a couple houses, pop a sign in the yard, and cash a check. There’s a perception problem in our industry, and a big chunk of it comes down to the words we use.

    What if we stopped calling it a commission and started calling it a professional fee? You could even call it a contingency fee if you want to mirror the legal world, but professional fee seems to be the one that’s really resonating in my coaching groups and with agents all over the country.

    Brokers, get your agents comfortable with this new language. Start weaving it into your listing appointments, buyer consultations, and marketing. You’d be surprised how just swapping out that one word shifts the whole vibe for consumers. It immediately frames you as a professional who charges for expertise — not a salesperson chasing commissions.

    Pro tip: Have your team practice saying, “My professional fee reflects the time, resources, and experience I dedicate to getting you the best outcome possible.”

    2. They’re helping agents own their value story

    A surprising number of agents struggle to explain what they do and why it matters, especially in a media climate filled with “agents are overpaid” narratives.

    That’s why brokers are stepping in with training, scripting, and role-play exercises that help agents clearly outline everything they provide, from marketing and negotiation to navigating legal complexities and protecting clients from costly mistakes.

    Try This: Have every agent create a “Value Cheat Sheet” of everything they do for buyers and sellers, and practice delivering it with confidence.

    3. They’re simplifying and strengthening the buyer agency conversation

    The settlement made one thing very clear: no buyer representation without a written agreement. But for many agents, that shift has created more confusion than clarity —especially when the new forms coming out from some MLSs and state associations look more like legal encyclopedias than practical contracts.

    That’s where savvy brokers are stepping up.

    We’re seeing this firsthand in our weekly coaching calls — agents who have never used a buyer agreement are now staring down 6 to 10-page forms packed with legalese. It’s overwhelming.

    That’s why forward-thinking brokers are doing two things right now:

    1. Simplifying the tools: Offering streamlined, easy-to-explain buyer agreements that don’t scare buyers off or leave agents fumbling through legal jargon.

    2. Training for trust: Equipping agents with the language, analogies, and confidence to present these agreements not as red tape, but as value-affirming documents that protectthe client.

    Brokers are also role-playing key objection scenarios, like:

    • “Why do I need to sign this?”
    • “Can’t I just work with multiple agents?”
    • “I thought your services were free.”

    When agents are empowered to answer these questions with clarity and calm, they stop seeing buyer agreements as a hurdle and start seeing them as what they are: a doorway to loyalty, legal protection, and a more professional relationship.

    4. They’re promoting transparency as a competitive advantage

    Buyers and sellers today want to know: What am I paying for, and what do I get in return?

    Smart brokers are helping agents create simple, visual tools (like tiered marketing plans, infographics, even short videos) that walk clients through their services and options in a clear, non-salesy way.

    Why this matters: Consumers want control. Giving them fee options or flexible service packages communicates transparency and positions the agent as a trustworthy advisor.

    5. They’re turning questions into conversations

    When a seller says, “I heard commissions are going away,” or a buyer asks, “Why do I have to pay your fee?”—those are opportunities to educate, not get defensive.

    Brokers are encouraging agents to lead with calm, clarity, and data. That means understanding the average agent income (under $50K annually), breaking down transaction costs, and sharing the real risks of going it alone.

    This isn’t about selling a fee. It’s about helping people make informed decisions.

    6. They’re equipping agents with the tools to compete

    What used to be behind-the-scenes agent conversations are now happening at the kitchen table. That’s why brokers are arming their teams with:

    • Dialogues (not canned scripts) and FAQs to handle commission conversations
    • Customizable marketing materials that reinforce professionalism
    • Done-for-you consumer guides that walk clients through the truth behind the headlines/ These are vital documents and essential trust-building tools.

    7. They’re adapting, not reacting

    Forward-thinking brokers are adjusting their models with confidence—not fear.

    That might mean offering tiered services, experimenting with à la carte offerings, or helping clients finance agent fees through closing credits. It’s all about flexibility without compromising profitability.

    Bottom line: The model may shift, but the mission stays the same — serve clients well and help agents thrive.

    It’s a vew beginning

    To the brokers reading this: This is your moment. You have a chance to lead your agents with confidence, to build public trust, and to strengthen your business from the inside out.

    Consumers still need guidance. They still want expertise. They still crave clarity.

    And when we give it to them — with professionalism, consistency, and compassion — we don’t just protect commission revenue; we elevate the entire industry.

    Darryl Davis, CSP, has spoken to, trained, and coached more than 600,000 real estate professionals around the globe. He is a bestselling author for McGraw-Hill Publishing, and his book, How to Become a Power Agent in Real Estate, tops Amazon’s charts for most sold book to real estate agents.

    This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

    To contact the editor responsible for this piece: [email protected]

    Brokers commissions Estate Protecting Real today
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