Houston real estate agents caught on tape steering buyers away from homes with less commission

“I’m not even going to show it to them, to be honest with you,” the real estate agent said. “I can’t help you to sell something that’s wiping out my profession.”

In recording after recording, Houston real estate agents are heard saying they will not show certain homes to their clients — even though the houses meet all the buyers’ desires.

Real estate agents are required by law to act in the best interests of their clients, but interactions recorded by California-based discount brokerage REX show that many actually steer clients away from homes that offer less lucrative commissions.

The recordings have come to light as high-profile lawsuits, including one brought by the U.S. Department of Justice, question the way real estate agents are compensated.

If those cases, or cases that follow, succeed in lowering real estate commissions to levels more in line, for instance, with the flat 1.18 percent commission seen in the United Kingdom in 2018 it could save homeowners upward of $70 billion a year — while costing agents the same amount.

Jack Ryan, REX’s chief executive, credits the recorded conversations with sparking the DOJ suit

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8 Ways Real Estate Agents Can Combat Commission Compression

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Although 2020 was a banner year for plenty of agents, there’s still a sizable share who are struggling to battle iBuyer and discount competitors who enable buyers and sellers to access agents for a fraction of what traditional brokerages charge. So, how exactly are agents supposed to compete in a landscape with 1 percent commissions and the promise of an easy sell?

Keller Williams trainer Dana Cadena and Compass Texas sales manager Bryan Pacholski alongside Connect moderators Katie Kossev and Kymber Menkiti on Wednesday shared nine ways agents can combat commission compression and leverage a changing landscape to their benefit.

1. Understand your value proposition and create a strategy around it

Brian Pacholski

Pacholski, who is managing director of sales for Compass Dallas-Fort Worth, said the first steps in battling commission compression lies with their value proposition and strategic planning.

“Most importantly, I think our agents have to discern their value,” he said. “We’re in a world that’s changing with

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