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Would you show a potential buyer a house if you knew your commission would only be two and a half percent? (let's say most of the houses you plan on showing are paying three percent).
I know you are SUPPOSED to show all houses that fit the parameters of the buyer, (or houses the buyer wants to see). But in the REAL world, would you tend to stay away from lower commission (for you) houses for sale?
Do I have a written buyer's agency agreement with the buyer?
How many houses are on the market in your price range/area?
Is the property overpriced for the market?
If there are lots of inventory to show, and you have a below average coop, and I don't have a BA agreement, I'll pass on your property. I am not their agent, with an agreement to get paid the *market rate* for my services.
But if I do have a BA, it doesn't matter, I'll get my full fee. BUT, if there are too many properties to show and your property has a below market coop fee, I'll pass (mainly due to the PITA factor.)
If you don't understand the game of organized real estate, too bad for you. Others do, and they are competing with you for the money my buyer brings to the table.
Real Estate is a game, I play by the rules, but I play to win. Do some people get what they want by going FSBO, MLS Only, Limited Services, Fee for Service, Full Service, VIP Service, Red Carpet Service....every day of the year.
Would you show a potential buyer a house if you knew your commission would only be two and a half percent? (let's say most of the houses you plan on showing are paying three percent).
I know you are SUPPOSED to show all houses that fit the parameters of the buyer, (or houses the buyer wants to see). But in the REAL world, would you tend to stay away from lower commission (for you) houses for sale?
Yes, as a matter of fact I just finished closing a transaction where the co-broke was 2-1/2%. If that's the house my buyers want, then that's the house we deal on.
I must admit I cringe, though. Not so much because I'll make less on the deal, but because I know that either the seller is really cheap (and we'll probably have trouble getting them to negotiate or make repairs) or else the agent is rather incompetent. Oftentimes it's a combination of both. The lower commission usually means that the listing agent had nothing special to offer the seller, so s/he offered to lower her commission. Generally speaking, any time I'm in a nightmare of a transaction where I'm working like a dog to hold the deal together, it's almost always because of a discount agent on the other side doesn't know what she should be doing, or else knows what she should be doing but is too lazy to do it. Grrrr!
I don't know if anybody has any statistics on it, but I would venture that discount commission deals fall out of escrow much more frequently than others.
Yes, as a matter of fact I'm getting beaten up on commission this year. A short sale and a foreclosure have resulted in 2 closings with 2.5 compensation for me so far.
But I'll also say I don't push as hard for them as I might would otherwise. (I don't go hard close much anyway but I really don't enjoy making less either.) If given a choice and 2 homes are equal I hope the buyer picks the 3%. Oddly enough, I don't care about the higher commissions but I don't like making less than standard at all. For 2.5% I'm really going to try and make a seller pay to the benefit of my buyer. I'm going to beat you up on price and repairs to make sure I end up with a darn happy buyer and I'm not going to go easy on your agent at all because I already think they're an idiot.
I agree with Brandon and Gretchen. When working with a buyer who has a buyer agency contract with me, my allegiance is to the buyer. So I will show him any and all properties that fits his criteria. However, if he choses a home where the seller doesn't want to "play by the rules", you can be sure that I will make the seller and his agent wish they had followed the rules.
Yes. I don't choose the houses I'm going to show, I show the houses the buyer chooses to see. It's not unusual for the split to be 2.5% in my area. It's not because we're idiots either.
Surprised by the "open" discussion re commission. Here in NY any discussion of commissions charged, collected, desired, etc. among competing or cooperating realtors is considered a violation of anti-trust laws. We are instructed to exit the conversation ASAP soooooooooooo bye...bye
Would you show a potential buyer a house if you knew your commission would only be two and a half percent? (let's say most of the houses you plan on showing are paying three percent).
I know you are SUPPOSED to show all houses that fit the parameters of the buyer, (or houses the buyer wants to see). But in the REAL world, would you tend to stay away from lower commission (for you) houses for sale?
Let's say that we are considering two identical floor planned and priced homes on the same cookie cutter block, in the same cookie cutter town, etc. Seller # 1 offers a 4% buyer broker commission and Seller # 2 offers a 2% buyer broker commission.
Surprised by the "open" discussion re commission. Here in NY any discussion of commissions charged, collected, desired, etc. among competing or cooperating realtors is considered a violation of anti-trust laws. We are instructed to exit the conversation ASAP soooooooooooo bye...bye
You are missing the key ingredient. It is a violation of Federal anti-trust laws for Brokers to conspire to set commissions. This means that Broker A and Broker B (and/or their agents) can not enter into a treaty to charge sellers a certain or "standard" fee which is usually in the form of a commission. There is nothing that says that a listing broker can not vary the splits they are paying a cooperating broker so long as it is not collusion.
Surprised by the "open" discussion re commission. Here in NY any discussion of commissions charged, collected, desired, etc. among competing or cooperating realtors is considered a violation of anti-trust laws. We are instructed to exit the conversation ASAP soooooooooooo bye...bye
Way to miss the point. We'll miss you greatly. There was no conspiring here...The question was, will you show it and the answer has been yes every time.
Oh, and in some markets you see a lot of 2.5% so I guess whatever your market it's x that is common -.5%.
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