Monkey Trap - The Commission's in the Gourd

With years of refinancing and home equity loans to purchase new cars or other items, some home sellers are getting close to closing only to find that they're too broke to sell. We all know, and the article indicates, that the major recipient of closing costs are the real estate brokers. This is not a condemnation of any particular commission rate or what we take away from a transaction. But it would be interesting to know how many of these deals would have closed if the sellers had been FSBO or used a discount brokerage. Perhaps they still would have died, but it's unfortunate that there is no data available to quantify it.

Could stories like this one actually feed the growth of alternative real estate business models? Are there opportunities for those who look for alternative ways to serve and bill their customers and clients? Are there pitfalls for those who don't? It brings to mind a popular method used to catch monkeys. Is a tight grip on the full service commission model creating risk for the real estate profession?

This isn't an attempt to upset my fellow real estate professionals, and I'm not comparing us to monkeys! We definitely provide great value to our clients. And there will always be sellers willing to pay 5% to 6% or more to get their homes sold. But the number who are not so willing is definitely growing. Do we risk evolving into a two-tier system of boutique or major franchise brokerages getting top dollar, with a lower strata offering steeply discounted rates for minimal to no services other than MLS listing?

I'm still quite thrilled to accept full commissions when I can get them. But my grip may be loosening, as I'd like to think that I can get my hand out of the gourd in time for a better future. Your thoughts?