Can you advertise anything regarding commission?

Question

I am a new agent who is finding it difficult to get my first listing. I recently started running ads and I'm wondering if it's legal to say something to the effect of "I can save you thousands on the sale of your home". There is nothing misleading about this, since I would gladly reduce my commission in order to get a deal. Also, I read the NAR ethics and advertising guidelines and found nothing that said this would violate. The only thing that concerns me is that I have never seen an ad like this. Is it just because most agents don't want to cut their commission or am I missing something in terms of legality?

Garrett Amundson · Answer

@John Apple I would do what ever you can to not cut your commission just for the sake of getting a listing. Prove your worth and that you deserve every bit of the commission you are proposing. Don’t let the aspect of you being new force you to do that for the sake of a listing. Any referral that the sellers may send your way are going to come in to it expecting for them to get a discount as well because their friends told them what you had offered them. You can do it just keep grinding, go after your sphere of influence and something will come along.

Lynn McGeein · Answer

@John Apple it depends on what your broker allows, at least in my state.  I am not allowed to broadly advertise specific commission rates; however, I am allowed to mail postcards offering special commission rates to areas where I've recently sold or if they give me permission to target a specific group (like non-owner-occupants in a specific zip code, for example).  For your first listing, you should be targeting your own sphere of influence -- family, friends, neighbors, or asking your broker to assign you a referral if possible.  One of my first homes was a complete wreck backing to railroad tracks where I brought my dog with me to any showings, assigned to me because my broker couldn't get any other agent to work it.  I have also worked with older agents in the firm who wanted someone to handle their client referrals, may be worth asking your broker if that's a possibility.

Oscar Pinto · Answer

I see agents in my state advertise 1% listing fees and commission rebates. I don't think there is a legal problem with that.

Shawn Mcenteer · Answer

@John Apple is it tough to get in-touch with your broker? I used to have that same problem with my old brokerage.

Wayne Brooks · Answer

You can offer any commission you want, as long as your broker agrees. You should be asking your broker these type of questions.

Can you advertise anything regarding commission?

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