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I read alot about negotiating down the realtors fee for their services of selling your house on these posts.
Isn't it most times the Broker who sets the commission fees and the agent who is working at that firm has to follow that? I am not speaking about the flat fee firms or the ones that list certain services at certain commissions.
And here is a biggie. Does anyone feel at getting an agent to reduce the commission is an insult to them; or feel the agent at a lower commission will do just as so many have stated about their realtors just plopping in a sign, throwing it on the mls and never hearing from them?
And how many agents here in NC actually will reduce their commission if so asked?
I'm in the land of 6% commission is the norm, and I told my realtor when we met her that I won't list with her for more than 5%, and she never batted an eye.
If we had a really low priced home, I wouldn't have asked. But, we had a higher than average for the area (low compared to raleigh!), had only had it two years, and her other homes she normally sells list for around 100K less. Didn't hurt to ask!
We did have an agent once reduce her comission for us, but our circumstances at the time were more dire and I think she understood that. I would think it's just up the realtor, how busy they are, whether or not they are independent and whether or not the reduced comission would still lead to a decent profit for him/her. I'm guessing they are also competing with discount comission services as well.
Now this leads me to another question perhaps directed at the realtors. When
the commission is reduced, is the commission reduced for the buyers agent or do you keep that listed as competitive with the going rate in that area?
I think asking the agent to reduce their commission is a very poor idea unless like in the previous example you have a very expenive home and the agent will still be compensated well.
Aks yourself this, if your boss came into your office today and said he wanted the same level of excellent work from you but he was going to pay you less from this point on, how motivated would you be?
I think agents who offer to work for discounted commissiona are:
1) Part-time agents that do a few sales here and there for extra cash
2) Deal with high volumes of homes to offset the reduced comission
I would rather pay the agents the standard comission and only bring up reducing comissions if an impass was ever reached when negotiating the sale. Sometime agents will redue their comission rather than see a sale fall apat after all the work they put into it, becasue at that point they have some "skin in the game".
Asking an agent to drop their comission up front is a bad idea to me.
I have talked to several agents about listing my house and were given different commissions for different services..Exclusive listing.. 2%.. MLS the average in NY is 4%... But I have seen other agents just come in with 2.5%
I recommend interviewing a couple of major offices and comparing what you get.. Photos, internet, open houses, etc....6% has become unusual here on LI. I would not keep it a secret either, tell the agent's what you are doing and let them give you their best shot!!
Now this leads me to another question perhaps directed at the realtors. When
the commission is reduced, is the commission reduced for the buyers agent or do you keep that listed as competitive with the going rate in that area?
We don't have the right to reduce the commission of another agent. If I list your home for 5% that means that the Buyer's Agent gets 3%, my Brokerage gets 1.5% and I get 1/2 of 1%. So, that being said...what kind of service can I really afford to provide?
As with everything else in life, you get what you pay for.
We don't have the right to reduce the commission of another agent. If I list your home for 5% that means that the Buyer's Agent gets 3%, my Brokerage gets 1.5% and I get 1/2 of 1%. So, that being said...what kind of service can I really afford to provide?
As with everything else in life, you get what you pay for.
Thanks all for clarification.
You see I felt exactly as some have stated; "You get what you pay for". Yet was shall we say- confused -as to so many trying to negotiate realtor commission fees.
I feel you either want to seriously sell your house or not when it all comes down to it.
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