Commision.

The current commission model is antiquated. However, change will be slow because the average agent is also growing old and is not anxious for changes.

The industry is failing to attract the young talent that would make needed changes. 

Status Quo has a lot of power.

Things change.

This is an age old question and one that everyone wants to fiddle with every so often.  I have heard that attorneys should take over for a flat fee, and thus eliminate agents..That is crazy too, and also that a real estate related firm is heavily investing in software for negotiating contracts, etc that will lessen the agent's role considerably, and they have funding from Venture Capitalists.

The truth is that it is a people to people business, and I agree with Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents , I would love a hover car.  A

The problem with the commission system is that it presents a "moral hazard." If you only get paid when a transaction closes there may be considerable pressure to close. To deny that is to deny reality. 

I don't see any changes coming soon, Teresa.  Maybe later in the future, but I doubt it.

When we stop having to put up with crap, insanity, and real estate becomes an unchallenged production with no need for negotations, nor the handling of people's egos, and all of the emotional upheaval is removed from the transaction; when decades of experience simply means you're an old person instead of a vast bank of knowledge, then we might see a flat fee over commisson percentages, just about the time we get hover cars.

Some conversations I have with low end sellers they don't like the idea of a flat fee.  They feel like we may not work as hard for them knowing we would get paid the same amount reguardless of the sales price.

I too have read such plans, I even offer them.

However, even when choice is before them, the buyer and seller continue to select traditional sales and purchase methods.

The real issue facing our profession is if the consumer is receiving their information from one source, and that source declares a 'customary compensation'  is $2, then you wil understand what I mean when I say, 'Control the information and you control the population."

I have seen an increase in Flat Fee listing, but not a corresponding increase in flat fee sales.

I've seen no real trends to change it.

I've seen a mix, mostly commission but some flat fee and hourly rate. I think there may be more flat fee but still a majority will stay with commissions.