Monday, January 21, 2013

A New Book Beginning

Gaining inspiration from my latest research on strategic human resource managment and the real estate industry, I decided to begin new research on the real estate commission model. This topic has many tentacles to flesh out so below is a beginning point for what I hope will become an eventual book. I intend to post excerpts of the work here on my blog as I develop the project. I look forward to contributing a new view on this mysterious space.


Luke knew deep down that there was still good in his father, Darth Vader, and he was right.

Deep down, real estate agents are good people, too. You may snicker or laugh at this statement, however, I believe this to be true just like Luke did about Anakin. What makes real estate agents seem like bad people or potentially unprofessional is actually the business model that they are bound by to conduct their services. This business model is known as the real estate commission model. When one first hears of real estate commissions, images of big cash payouts and large commission checks come to mind, right? I am assuming you agreed. Well, unfortunately there is a dark side to the real estate commission model.

This book objectively discusses and points out the many flaws of this business model which is implemented throughout the industry and for more than a century now. My motivation for writing this book is not to call anyone out or any specific businesses, but bring to light the inner workings of the real estate commission model for the new agent ready to enter into "the business", for the public consumer who is in "the market" or for anyone else curious to know more about this subject.

Secretly, my aspiration for this book’s discussion is for one day, real estate brokers and agents will eventually realize the negative aspects of this business model outweigh the positives ones and turn to the light side by switching to an alternate business model such as the fee-for-services model or a project management model which I will propose as an alternative solution at the end of the book.

This is my new hope.



  1. Interesting points you bring out! I would be interested to see some of these ideas in action. Right now, some agents do have a fee-for-services structure. I would like to see how successful thA is for them. My blog tomorrow actually addresses real estate commission, how it is negotiated and how it is split.

  2. Thanks for your comment Nichole. Again, my argument against the use of real estate commissions will be an objective one. The audience I am targeting are those who are interested in becoming licensed and consumers of real estate. I know you and others already in the field will want to see actionable takeaways, however, it is important to dissect the theory of real estate commissions and then build a case against it. Having said this, I plan to propose the implementation of project management alongside or possibly in a hybrid scenario with fee-for-services. I look forward to your future comments, thanks Nichole.

  3. Talk about David and Goliath!! But you are the innovator... Keep me informed as you progress, will be interesting theories, and actions - even better! :)