Seven Reasons Why Connecticut Realtors Won’t Share Commissions

Many clients may wonder why their realtor won’t share a part of their commission, especially considering the large sums often involved in real estate transactions. At first glance, it might feel as if agents are reluctant to offer a rebate because they want to make as much as they can from each sale. While some agents would argue that commissions reflect the hard work they put in, here’s a closer look at why many realtors avoid sharing part of their fees, and yes, why money is oftentimes the main motivator.

1. High Commissions = High Earnings

In real estate, commissions are often calculated as a percentage of the sale price, so the higher the price tag, the bigger the payout. Many agents see each transaction as an opportunity to secure a significant paycheck. With agents working on a commission-only basis, this becomes an incentive to make as much money as possible on each deal, rather than giving any back to clients. For most, maintaining the largest possible commission matters more than the client’s overall savings.

2. Market Standards and Brokerage Policies

In some areas, offering a rebate is less common and may be seen as an attempt to undercut industry standards. Additionally, most brokerages discourage or even prohibit agents from rebating commissions, as this could affect the company’s brand and income structure. Real estate agents are often independent contractors under their brokerages, which means they follow their brokerage’s rules. Even agents willing to offer rebates might be restricted by their agency policies.

3. Commission Rates Are Difficult to Negotiate

Agents are trained to stick to their rate structures, and many are skilled negotiators themselves. Often, they’ll push back hard when asked for a rebate, because they are committed to earning as much as possible from each transaction. They may rationalize this by pointing to their “unique expertise,” which, while valuable, often doesn’t differ much from agent to agent. In reality, some agents simply aren’t interested in giving up a slice of their income, seeing it as a “win” only if they earn the full commission.

4. A Mindset of Maximizing Profits

Like any businessperson, many realtors aim to maximize their profits. Since they work on a commission-only basis, each deal counts, and they want to squeeze the most they can from every transaction. Agents in high-priced markets are often incentivized to get clients through transactions as quickly as possible to move on to the next commission opportunity, rather than considering ways to save money for the client. With higher profits in mind, a rebate is often seen as a cost they’d rather not incur.

5. Pressure to Hit Financial Goals

For many real estate agents, high commissions are the name of the game. Each transaction counts toward reaching personal financial goals, whether it’s paying for expenses, competing in a luxury market, or simply maximizing their yearly income. For agents with financial targets, rebating a portion of their commission can feel like taking a step backward. In some cases, the drive to hit these targets overshadows the desire to make real estate more affordable for clients.

6. Industry Culture Around High Commissions

Real estate has a longstanding culture that values high commission rates, and for many agents, pushing to earn the full rate has simply become a standard approach. This can lead to a mindset where agents believe they deserve every penny of the commission, regardless of whether it would benefit the client to share some of it. In a world where agents are used to high payouts, offering rebates goes against the grain—and many prefer to keep more of the pie for themselves.

7. Avoiding “Discount Agent” Perception

Some agents worry that offering a rebate could make them appear as “discount agents,” and they might believe this could harm their reputation or even future earning potential. Instead, they want clients to see them as premium, full-price professionals. For these agents, the goal is to maintain a high-earnings reputation, which they believe justifies full commissions, and a rebate would undercut the perception of exclusivity they want to maintain.

Is Asking for a Rebate Still Worth It?

While it can be disappointing to see your realtor refuse a rebate, some clients still find it worth negotiating, particularly if they feel the full commission isn’t justified. However, understanding that some agents prioritize their profit above all else might influence the decision about whether to work with an agent who refuses to rebate part of their fee. If you’re set on a rebate, seeking an agent with a transparent approach and a client-centered mindset may be the way to go. In the end, finding a realtor who genuinely puts your financial interests first can make a world of difference.