Real Estate Dimension is a small brokerage firm without a network of executives and branch offices dipping into company profits. Therefore, the value we can offer to the general public is unsurpassable when compared to the SAME services offered by larger firms.
For years we believed the real estate industry has kept the general public in the dark, much like the automotive industry, as to how real estate agents make money. Let's look at a standard sales commission on a home for example. This commission, as depicted in a typical listing agreement between the seller and his/her agent, is believed to be divided upon the sale of the property between the seller's agent and the buyer's agent. What the general public is not aware of is that there can be as many as four agents involved in any one transaction, all of which taking a cut of this commission. In addition, it is the discretion of the listing agent as to what percentage of the commission will be given to the buyer's agent.
Missouri law requires all monetary transfers involving real estate transactions to be conducted and supervised by licensed brokers. No commission can be transferred between salespersons directly. This law is due in part because the state requires different educational and licensing requirements for brokers and salespersons and a broker is responsible for the actions of their subordinate salespersons. As a result, a real estate salesperson must have their license held by a licensed broker in order to practice and profit from real estate sales. In exchange for holding an agents license the principal broker will negotiate a private commission split with its agents. This scenario occurs on both sides of the buying and selling brokerage table. As a result, a typical real estate transaction involves four licensed agents splitting one commission on a sale. In addition, a majority of brokerage firms price their listing commissions accordingly so that all agents may get a fair share.
The Real Estate Dimension immediately adds value to our clients because our salespersons don't split their commissions with their broker. By eliminating a hand in the pot we can pass this savings on to our clients. Therefore, we often can offer a much lower commission agreement to our clients for the same service as other firms are offering. In addition, we are a small firm, which allows you can negotiate with our principal broker directly to creatively establish a commission that fits the financial goals of each party. According to Missouri law there is no set commission agents can charge for their services and if they tell you there is they are price-fixing and can be prosecuted by the Missouri Real Estate Commission. Commission agreements in Missouri are 100% negotiable and in some cases it may even be feasible to barter for our real estate services.