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Thanks for pointing this out. It's an interesting discussion.
I think the other comments miss my point. There is a huge difference between the commission on a $500,000 house (the median house sale price in Nassau county) and a $2 million or $5 million house. The agent working on the high-priced house doesn't do 4x or 10x as much work and isn't 4x or 10x more experienced or better. But a buyer paying a full commission on a higher-priced house is paying out tens of thousands of dollars more. If there are hundreds of agents willing to show buyers $500,000 houses and earn a full commission for their hard work and expertise, they should be thrilled to make even more money by taking 50% of the commission on a $2 million or $5 million house and rebate 50%.
Also I understand that realtors frequently pay finder's fees to other realtors for referring a client equal to 25% or more. So clearly there are plenty of agents happy to work for less than a full commission. I was referred by a neighbor to an agent who sounds very eager to work with me despite the fact that he's paying a sizable percentage of his commission to my neighbor.
Something tells me that if I email 10 agents, I will get responses from a few willing to rebate part of their commission. I'm just looking for a few recommendations before I start doing that.
How do you know this?
Who are YOU to say that they "deserve" less than the standard deal?
I know someone who sells exclusively in the Hamptons. While when she does make a sale, it is a good amount, it is not a walk in the park negotiating that type of real estate. She also has more marketing, staging, etc., costs than the salespeople who represent average type homes.
Isn't the commission paid out of the seller's proceeds anyway - and as ILLB mentioned then split up amongst the (usually) four parties? THerefore the OP isn't out any money either way. Elke, Tom, correct if wrong?
P.S. Another lesson in "money doesn't cure cheapness"!
Thanks for pointing this out. It's an interesting discussion.
I think the other comments miss my point. There is a huge difference between the commission on a $500,000 house (the median house sale price in Nassau county) and a $2 million or $5 million house. The agent working on the high-priced house doesn't do 4x or 10x as much work and isn't 4x or 10x more experienced or better. But a buyer paying a full commission on a higher-priced house is paying out tens of thousands of dollars more. If there are hundreds of agents willing to show buyers $500,000 houses and earn a full commission for their hard work and expertise, they should be thrilled to make even more money by taking 50% of the commission on a $2 million or $5 million house and rebate 50%.Also I understand that realtors frequently pay finder's fees to other realtors for referring a client equal to 25% or more. So clearly there are plenty of agents happy to work for less than a full commission. I was referred by a neighbor to an agent who sounds very eager to work with me despite the fact that he's paying a sizable percentage of his commission to my neighbor.
Something tells me that if I email 10 agents, I will get responses from a few willing to rebate part of their commission. I'm just looking for a few recommendations before I start doing that.
A couple of points:
a) Higher value homes tend to attract individuals that expect more from their agent requiring more work on the agents part. They also look for experienced agents to represent them, no one wants a rookie on a 2m deal.
b) The seller not the buyer is obligated to pay the commision, even when the buyer is using a Buyers Agent.
c) Who are you to decide when to cap a realtors commision and decide they can afford to give back 50%!You really are full of yourself and I would guess any realtor working with you would more than earn their commisssion.
d) Why don't you shop for a realtor you feel is competant and you are comfortable to work with. One that can secure you the best deal on whatever property you are considering. Stop looking for a kick back like you are doing them a favor....
Thank you all for your negative comments and insults. I was hoping to get some useful info but am not surprised that I've mostly just been berated by strangers over the internet.
Yes, I understand that commissions are split several ways. I am still looking to get a rebate of part of the buyer's agent's commission.
Yes, I understand that realtors only can provide finder's fees to other realtors. The neighbor I wrote of is a realtor.
Yes, I understand that listing agents may have to spend more money and more time selling a higher priced house. But I am looking for a buyer's agent, not a listing agent.
No, I am not trying to decide whether someone "deserves" 1% of 500,000 or 1% of 5,000,000 for their work in a real estate transaction and I don't care. I am just trying to find someone competent who's willing to offer their service for the best price. Just like everyone does every day when they shop for any good or service.
The idea that "seller pays the commission not the buyer" is the silliest thing I've ever heard. The buyer brings all the money to the table. Some goes to the agents, most goes to the seller. The seller chooses the price at which they are willing to sell for cash proceeds net of the commission. Both parties pay because the buyer comes up with a gross amount and the seller receives a net amount. In the absence of agents they would meet in the middle of the gross and net amounts, with the buyer paying less and the seller receiving more.
So far I am leaning towards using Redfin but I am still open to other agent recommendations.
Thank you all for your negative comments and insults. I was hoping to get some useful info but am not surprised that I've mostly just been berated by strangers over the internet.
Yes, I understand that commissions are split several ways. I am still looking to get a rebate of part of the buyer's agent's commission.
Yes, I understand that realtors only can provide finder's fees to other realtors. The neighbor I wrote of is a realtor.
Yes, I understand that listing agents may have to spend more money and more time selling a higher priced house. But I am looking for a buyer's agent, not a listing agent.
No, I am not trying to decide whether someone "deserves" 1% of 500,000 or 1% of 5,000,000 for their work in a real estate transaction and I don't care. I am just trying to find someone competent who's willing to offer their service for the best price. Just like everyone does every day when they shop for any good or service.
The idea that "seller pays the commission not the buyer" is the silliest thing I've ever heard. The buyer brings all the money to the table. Some goes to the agents, most goes to the seller. The seller chooses the price at which they are willing to sell for cash proceeds net of the commission. Both parties pay because the buyer comes up with a gross amount and the seller receives a net amount. In the absence of agents they would meet in the middle of the gross and net amounts, with the buyer paying less and the seller receiving more.
So far I am leaning towards using Redfin but I am still open to other agent recommendations.
Redfin is the only company that does anything like what you want that I am aware of. If you're trying to play "let's make a deal" with an individual licensed salesperson, good luck, because they have to go by the rules of the broker/company they work for, first and foremost.
[quote=Adam777;27297719]Thank you all for your negative comments and insults. I was hoping to get some useful info but am not surprised that I've mostly just been berated by strangers over the internet.
Yes, I understand that commissions are split several ways. I am still looking to get a rebate of part of the buyer's agent's commission.
Yes, I understand that realtors only can provide finder's fees to other realtors. The neighbor I wrote of is a realtor.
Yes, I understand that listing agents may have to spend more money and more time selling a higher priced house. But I am looking for a buyer's agent, not a listing agent.
No, I am not trying to decide whether someone "deserves" 1% of 500,000 or 1% of 5,000,000 for their work in a real estate transaction and I don't care. I am just trying to find someone competent who's willing to offer their service for the best price. Just like everyone does every day when they shop for any good or service.
****The idea that "seller pays the commission not the buyer" is the silliest thing I've ever heard. The buyer brings all the money to the table. Some goes to the agents, most goes to the seller. The seller chooses the price at which they are willing to sell for cash proceeds net of the commission. Both parties pay because the buyer comes up with a gross amount and the seller receives a net amount. In the absence of agents they would meet in the middle of the gross and net amounts, with the buyer paying less and the seller receiving more.
**** You may think it "silly" but I can tell you that,I as the seller, am paying the 4 % commission to my broker. Regardless of a million dollar sales price or the half a million dollar sales price, or the 200k sales price, the SELLER pays the commission in NYS. I find it funny that as "educated" as you proclaim to be RE wise that you think this is "silly". No, it is not "silly", it is FACT. The buyer agrees to give me " X " for my house, I in turn receive "X minus the commission" therefore I (the seller) am paying the commission. It is that simple.
****So far I am leaning towards using Redfin but I am still open to other agent recommendations.
**** Collectively, the buyers agents in Nassau County have breathed a sigh of relief!!!
Thank you all for your negative comments and insults. I was hoping to get some useful info but am not surprised that I've mostly just been berated by strangers over the internet.
Yes, I understand that commissions are split several ways. I am still looking to get a rebate of part of the buyer's agent's commission.
Yes, I understand that realtors only can provide finder's fees to other realtors. The neighbor I wrote of is a realtor.
Yes, I understand that listing agents may have to spend more money and more time selling a higher priced house. But I am looking for a buyer's agent, not a listing agent.
No, I am not trying to decide whether someone "deserves" 1% of 500,000 or 1% of 5,000,000 for their work in a real estate transaction and I don't care. I am just trying to find someone competent who's willing to offer their service for the best price. Just like everyone does every day when they shop for any good or service.
****The idea that "seller pays the commission not the buyer" is the silliest thing I've ever heard. The buyer brings all the money to the table. Some goes to the agents, most goes to the seller. The seller chooses the price at which they are willing to sell for cash proceeds net of the commission. Both parties pay because the buyer comes up with a gross amount and the seller receives a net amount. In the absence of agents they would meet in the middle of the gross and net amounts, with the buyer paying less and the seller receiving more.
**** You may think it "silly" but I can tell you that,I as the seller, am paying the 4 % commission to my broker. Regardless of a million dollar sales price or the half a million dollar sales price, or the 200k sales price, the SELLER pays the commission in NYS. I find it funny that as "educated" as you proclaim to be RE wise that you think this is "silly". No, it is not "silly", it is FACT. The buyer agrees to give me " X " for my house, I in turn receive "X minus the commission" therefore I (the seller) am paying the commission. It is that simple.
****So far I am leaning towards using Redfin but I am still open to other agent recommendations.
**** Collectively, the buyers agents in Nassau County have breathed a sigh of relief!!!
I'll try to make this really simple. Let's say your house is listed for 200,000 because after 4% of commission you get 192,000, which is the minimum cash you are willing to walk away from the house with. Now let's say a buyer can't afford 200,000 and can only pay 198,000. To close the deal, the brokers are willing to cut the commission from 4% to 3% so the buyer pays 198,000 and you get the same 192,000. Now, did they buyer pay more, or less, or the same as the commission got smaller?
This had to be a joke. No sensible person could really expect this. I think we got punk'd
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