Are there any real estate brokers whose agents get salary, not commission?

Question

Any brokers out there who pay the real estate agents under them a flat salary rather than a portion of the commissions? I'm not an agent looking for a job btw. I was just curious, because it seems like agents working for salary is the only way to eliminate the conflict of interest all agents have (seller's agent conflict- want the house to sell quickly, so try to get sellers to accept low bids. buyer's agent conflict- same idea but reverse- want the house bought quickly, so encourage clients to bid high).

I know there are codes of ethics etc. that require agents to work in their clients' best interest, but it is human nature to act according to incentives.

If I were buying/selling a house (which I'm not) I'd for sure use a broker whos business was structured in this manner.

Answer 1

I've heard of Realtors having assistants that are salaried, but for a brokerage to structure the office that way would be stupid. Imagine a company that ONLY gets a paycheck when a house sells.... but paying everyone whether or not they're selling any houses?

Your concern though has some validity. There are agents making a living at doing "relos" - Relocation buyers get referred to them (at maybe a 35% fee). The agents take them all straight over to the builder that pays them back the relo fee and avoid showing pre-owned homes or builders that don't offer enough Realtor bonuses.

And, there are real estate agents as you describe - just trying to get the deal through instead of adhering to the code of ethics and placing the client's interest above their own.

This is specifically why word of mouth is the BEST way to find your Realtor. Talk to people you know, and who's judgment you trust about who they used and if they were treated right.

The best phone calls I get are "Richard, you sold my cousin/brother/sister/dad... a house three years ago and he told me to call you when it's time for me to buy - it's time."

Answer 2

I'm a mortgage broker from Edmonton, Alberta. In this city there's a hugely successful realtor who has a big team of buyer/seller agents that he pays a flat wage of $60K per year. He of course is very very successful

Answer 3

I believe NewPrime Home Loans operates this way. You can check them out at http://www.newprimehomeloans.com
I worked with a loan officer there who helped me out a lot and explained the whole process to me and all kinds of different things I had no idea about earlier. His name was Jon Griffon. I would always ask to speak with him first. Anyway, they are a mortgage bank, so they aren't the middleman to start with, and he gave me different options and how I could utilize them.

Answer 4

There are none in my area. We all work on 100% commission.
RE Agent,
Remax

Answer 5

Yes, there are but the commision is not as good!