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I don't want to take this discussion too far off track but I'm going to say we're going to end up agreeing to disagree on this one. When negotiating commission, the agent is their own client. They are responsible at this point for getting themselves the best deal possible. If they can't do that for themselves how are they going to do it for you?
It's one thing if at the end of a negotiation a middle ground is found. It's another thing if an agent walks in and immediately offers to work for significantly less than the competition. My experience is that these agents have little to offer in terms of helping you get your home sold which is why they can only compete on price. They also put little effort into negotiating your sale because they just want to get it done and move on to the next one. They offer a low price because they also offer a low value. Of course, there are different models of agencies because there is no one size fits all model. I personally only offer full service agency and I strive to offer my clients an excellent value for their dollar. If someone else comes in and offers to do it for less chances are, they're not offering what I'm offering. I charge more so that I can afford to give each client as much time as they need and give them my best effort.
1. I deny that I have "competition." I merely have failed to reach all clientele who would benefit magnificently from my superior, forward-thinking service and occasional wry insights.
2. More seriously...
It is absolutely none of my business what any other firm or agent charges, no matter how deeply ensconced they may be in old school price-fixing models.
I know my costs of doing business and what I need to make to make working in real estate well worthwhile. And, I set fees accordingly. I will take all the business I can possibly serve under that model and never think I am failing by leaving any of the clients' money on the table.
That is pretty much what the DOJ wants of us, and I agree with them.
I'm surprised OP did not mention anything about marketing.
Even a monkey can sell a home if it's accommodating enough.
I would overlook the call-taking as a minor annoyance, not a dealbreaker. You're only going to have one appointment, but you'll have many more phone calls, and at least you know this agent is quick to answer.
soooo many agents never answer the phone or return phone calls.
Marketing + prompt response = winner.
Last edited by oh come on!; 03-29-2016 at 01:40 PM..
Well, my wife and are stuck choosing between two agents after meeting with them about listing our home for sale with them. We were impressed with them both, as I had expected. They both are longtime, well established(30 and 40 yrs experience here), reputable, knowledgeable agents/brokers and familiar with the area, but I knew that when this began. Each offered good feedback and had similar answers, high energy and personable.
We are waiting for the CMA's, expected within the next 24 hours. If they both return comparable values, which is also to be expected, what might we consider, or ask that may sway our decision short of a coin flip?
There are two notables; one agent had her phone ring a good half dozen times in the 1.5 hours we visited, so there was several interruptions, she answered and was very brief with promise to return the call. The other never had her phone ring, whether that was because she had it silenced out of courtesy, or simply did not get a call during her time with us, we do not know. I like to think the former.
Both told me to stop making repairs the home inspector indicated should be made so that the buyers home inspector has something to nit pic about, which I completely understand. Fortunately, I had done the "major" repairs by this point.
The busy phone pointed out one item (aesthetic) she felt needed enhancement to up the value and ease the sale. She went so far to call a handyman, who incidentally was near by, and asked him to come by for an opinion, which he did and freely offered advice.
The other agent singled out a few things (aesthetic) and also offered solutions to increase the value and ease the sale.
Both were impressed with what we had done, and are doing, to ready the house for market. Between the both of them, those items they picked out were things of concern to me and there were no surprises. I was happy with that.
Both said that there commission was negotiable, one did bring up the possibility of dual agency(legal in Alaska and I am familiar with it), she said as many as 1 in 5 of her deals are thus. I was surprised it was that common.
My question is; If you felt equally comfortable with either agent, what would you ask them in order to separate them and make a choice?
Can someone explain to me the reasoning of this? I've never heard of this. I'm about to list my house and I'm worried about 4 or 5 nail pops in my master closet. I was thinking of filling them in with caulk...
I agree with both Mike's even on differing opinions of commission.
None of what you posted dictates a good or bad agent to me.
1-written marketing plan and quality/amount of photos
2-ask them to explain the contract of sale and see which one knows it better. I would give you some agency or contract specific questions to test knowledge but I don't know your forms.
2-ask them to explain the contract of sale and see which one knows it better. I would give you some agency or contract specific questions to test knowledge but I don't know your forms.
#2 is just nitpicking.
both agents have decades of experience. I'm sure both know enough about the contracts to have a smooth transaction.
OP just has to look up zillow for their current listings to get an idea how well they present homes.
1. I deny that I have "competition." I merely have failed to reach all clientele who would benefit magnificently from my superior, forward-thinking service and occasional wry insights.
I can't argue with that logic.
Quote:
Originally Posted by MikeJaquish
2. More seriously...
It is absolutely none of my business what any other firm or agent charges, no matter how deeply ensconced they may be in old school price-fixing models.
I know my costs of doing business and what I need to make to make working in real estate well worthwhile. And, I set fees accordingly. I will take all the business I can possibly serve under that model and never think I am failing by leaving any of the clients' money on the table.
That is pretty much what the DOJ wants of us, and I agree with them.
That being said . . . a lot of brokerages offering so called "discount" commissions have either gone out of business or are in bad shape financially. First, I just want to say how can a commission be "discount" if there is no standard? Second, I would cite this as evidence that some agents/brokerages are apparently willing to offer a commission schedule that does not cover costs (why else would they go out of business?). Therefore, these people are poor business people who should not be trusted with your largest asset.
I've found in general you get what you pay for in this world.
That being said . . . a lot of brokerages offering so called "discount" commissions have either gone out of business or are in bad shape financially. First, I just want to say how can a commission be "discount" if there is no standard? Second, I would cite this as evidence that some agents/brokerages are apparently willing to offer a commission schedule that does not cover costs (why else would they go out of business?). Therefore, these people are poor business people who should not be trusted with your largest asset.
I've found in general you get what you pay for in this world.
We see old school, price-fixed-commission offices close, fail, merge, etc, all the time here.
Bad management is bad management regardless of how much revenue is generated.
Not getting what you pay for is common as the day is long.
I find that you don't always get what you pay, but more often, if you don't pay for it, you don't get it.
Our local "leaders" who pushed through a common 60/40 split on commissions shot the Legendary 6% or 7% in the foot big time. 70%+ of listings in my county offer a 2.4% co-broke, and buyers' agents fight tooth and nail to get there first to collect it.
In our strong sellers' market, it is extremely hard to contend with a straight face that a listing agent who gets to contract before they can develop a full marketing scheme is worth 50% more than a good buyers' agent, or is even actually worth a nickel more than a good buyers' agent for that matter.
It puts the cross hairs directly on the listing commissions, and proves you CAN get it without paying an old school price-fixed commission.
There is no reason for a seller to pay more than 5%, if that, for most residential listings in my county. Very low end properties, or compromised/distressed properties may be exceptions.
I can assure you I will be "borrowing" it at some point.
Quote:
Originally Posted by MikeJaquish
We see old school, price-fixed-commission offices close, fail, merge, etc, all the time here.
Bad management is bad management regardless of how much revenue is generated.
Not getting what you pay for is common as the day is long.
I find that you don't always get what you pay, but more often, if you don't pay for it, you don't get it.
Absolutely . . . paying more is no guarantee that you'll get more. However, paying less virtually guarantees that you'll get less. As has been alluded to in this discussion, due diligence is a process and a broad one at that. The ability to negotiate one's own commission is but a small part of that process.
Quote:
Originally Posted by MikeJaquish
Our local "leaders" who pushed through a common 60/40 split on commissions shot the Legendary 6% or 7% in the foot big time. 70%+ of listings in my county offer a 2.4% co-broke, and buyers' agents fight tooth and nail to get there first to collect it.
In our strong sellers' market, it is extremely hard to contend with a straight face that a listing agent who gets to contract before they can develop a full marketing scheme is worth 50% more than a good buyers' agent, or is even actually worth a nickel more than a good buyers' agent for that matter.
It puts the cross hairs directly on the listing commissions, and proves you CAN get it without paying an old school price-fixed commission.
There is no reason for a seller to pay more than 5%, if that, for most residential listings in my county. Very low end properties, or compromised/distressed properties may be exceptions.
The market will bear what the market will bear. I'm in an incredibly hot market and some people have taken to FSBO'ing because of it which of course means no commission or maybe a commission to one agent. I could literally train a monkey to sell a house around here. As a professional though, I know there's a huge difference in getting an offer and getting the most money for your house. There's an incredible amount of thought and logic that goes behind everything I do and it's all geared toward getting the house closed for the most money possible. I can't tell you how many FSBO's I've spoken with who have given away thousands or even 10's of thousands of dollars. Had they hired me instead, they would have walked away with more even if they paid me.
When negotiating commission, the agent is their own client. They are responsible at this point for getting themselves the best deal possible. If they can't do that for themselves how are they going to do it for you?
My favorite counter on this is along the lines of "Well, if Agent C has offered you a discount right off the bat, how do you feel about out-negotiating someone who is supposed to be a fierce, professional negotiator?" It always makes people go, "Uhhh . . . "
And there's always the 6 dollar bills. "Here's six percent, a typical commission in this area. Now, three of these will be shared with the agent who brings a buyer. (sweep away three bills). If it happens to be me, then we can discuss an alternative compensation. Now, of the three bills remaining, one of them goes to my broker (take another one away). One of them goes toward paying me and my staff, including self-employed taxes, etc. (take another one away)." That leaves one lonely dollar bill on the table. "Now, this dollar represents the money that I spend on marketing your property. But the reason you're considering hiring me is because of my marketing expertise -- you've seen my work on other homes, and you've probably received my mailings and possibly even some emails. Professional advertising media, professional photography and internet marketing have a cost. I can certainly reduce the commission -- but it will come at the cost of funds available for marketing. Is that what you really want?" Then I offer them the dollar bill. I have only had one guy who took it. :-)
And there's always the 6 dollar bills. .... I have only had one guy who took it. :-)
does that demo really work that well? I always think these dollar bill demos insult their intelligence.
This is the way you would teach a child, not an adult.
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