SANTO DOMINGO- The bill regulating real estate services and brokerage contracts, currently before the National Congress, sets the commission for real estate agents at 5% upon closing a sale, the same commission they currently receive for this service.
“The amount of this compensation will be governed by customs and practices: five percent (5%) on the sale and the equivalent of one month's rent as a commission for rental contracts for a minimum term of one year, unless otherwise agreed,” the legislative piece states.
However, there are often real estate agents who agree to charge a commission below that amount, which, according to prominent real estate advisor Ariel Grasso, represents a lack of respect for other real estate brokers, given that it is a profession based on alliances.
“We let the owners determine the value of our work. I very often encounter real estate agents who are responsible for managing the commission when acquiring a property, since in this business 90% of transactions are shared and they earn 4% or even 3%, when the norm is 5%,” he explains.
Since when do property owners determine the value of my work? How can the owner "give" an X percent commission? asks the Top Producer of RE/MAX Dominican Republic.
As an example, he mentions the situation where a doctor never allows the patient to set the price of their consultation. “If we don’t value our work and let someone else set the price we’re worth, how can we expect to grow as a sector?”.
He adds that, since it is a shared profession, the real estate agent always expects at least a 2.5% commission from the partner who acquires the property, because a quality service is being provided.
“And the common expression is that the owner is giving me money, which I understand shouldn't happen because, as a professional in this field, it's the agent who should set their own fees. It worries me when that happens because if, as a listing agent, you can't defend your commission, how are you going to defend the representation of that property against the owner?” Grasso explained.
He added that in his case, he has had situations where the owner has told him that they have agents who charge them 4%. “I respond, well, the other real estate agent knows what they're worth. I charge you 5% for various quality services, professionalism, market analysis, professional photos, and I guarantee the sale within a certain timeframe.”.
