Tired Commission Structure Examples

Source: ChatGPT

 

In a tiered commission structure, agents typically charge higher fees or commissions as they provide more services or deliver additional value. This also addresses the current blow-back from the NAR lawsuit that agents only offer one set fee, and clients do not have choices. Below are examples of common tiered commission fee increases and the services that might be offered at each level:

1. Basic Tier (e.g., 4%–5% commission)

This level is for sellers or buyers who need essential services with limited extras.

Services Included:

  • MLS Listing: Adding the property to the Multiple Listing Service.
  • Basic Marketing: Flyers, signage, and online listings on popular real estate websites.
  • Transaction Coordination: Handling paperwork and timelines.
  • Pricing Analysis: A Comparative Market Analysis (CMA) to determine the listing price.
  • Basic Showing Services: Scheduling and hosting showings.
  • Transaction Protections: Provide Realty Guardian Bronze Safeguard Plan ($199), offering basic risk protection up to $5,960.

2. Standard Tier (e.g., 5%–6% commission)

This level includes enhanced marketing and additional support services.

Services Included:

  • Enhanced Marketing: Professional photography, virtual tours, and social media promotion.
  • Staging Consultation: Advice or minor staging for improved home presentation.
  • Open Houses: Hosting open house events to attract buyers.
  • Home Warranty: Providing a seller-paid warranty to reduce buyer concerns.
  • Negotiation Support: More involved negotiation for offers and contingencies.
  • Transaction Protections: Provide Realty Guardian Silver or Gold Safeguard Plans ($299 or $399), offering a higher level of risk protection up to $12,630 or $20,065.

3. Premium Tier (e.g., 6%–7% commission)

This top-tier option includes all services in the Basic and Standard tiers, plus premium perks.

Services Included:

  • Advanced Marketing: Drone photography, professional videography, and personalized property websites.
  • Full Staging: Professional staging to maximize the home’s appeal.
  • Paid Advertising: Paid online and print ads targeting specific buyer demographics.
  • Pre-Listing Inspection: Seller-funded inspections to identify and address issues upfront.
  • Premium Safeguards: Comprehensive transaction protection plans, such as those from Realty Guardian, to minimize seller risks.
  • Moving Assistance: Partnering with or subsidizing professional moving services.
  • Concierge Services: Coordinating repairs, cleaning, or landscaping to prepare the property for sale.
  • Post-Sale Follow-Up: Support after closing, including utility transfers or addressing buyer issues.
  • Transaction Protections: Provide Realty Guardian Platinum or Platinum+ Safeguard Plan ($599/$999), offering a highest levels of risk protections up to $30,000 or $50,000.

Additional Services by Tier:

For Buyers:

  • Basic Tier: Help with property searches, showings, and contract negotiation.
  • Standard Tier: Access to off-market listings, priority scheduling for showings, and transaction safeguard plans.
  • Premium Tier: Exclusive buyer access to premium listings, moving assistance, and in-depth risk management coverage.

Factors Affecting Tiered Commission Structures:

  1. Market Trends: In competitive markets, higher-tier services may help sellers attract buyers faster.
  2. Price Range: Higher-priced homes often justify enhanced services, while entry-level homes may lean toward the Basic Tier.
  3. Agent Expertise: Experienced agents may offer high-end tiers to showcase their value.

This tiered approach gives sellers and buyers flexibility while allowing agents to position themselves as adaptable professionals offering tailored solutions.