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Old 04-04-2008, 04:48 PM
 
3,725 posts, read 4,727,607 times
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Quote:
Originally Posted by scirocco22 View Post
Ah, I think I did see that thread. I'll go back and read it more carefully.

Ok, this whole thing sounds like it wouldn't work. I should probably just negotiate a straight commission with no bonuses or tiers involved, correct?
I would.

Good luck to you!
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Old 04-04-2008, 04:51 PM
 
Location: Houston, Texas
469 posts, read 969,740 times
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Quote:
Originally Posted by Brandon Hoffman View Post
I doubt many good agents that would agree to that. The agent has no control for what your home sells for. It is worth what it's worth, and they'll do the same amount of work regardless. Personally, I've never seen it and I'd never agree to work on a scale like that knowing I can't make a home sell for more than someone is willing to pay. My personal take is "Why should I as an agent be punished for your not being worth more?"

Your suggestion also opens the door for agents to be dishonest with you about list price since some will put it on the market and hope that it sells for the higher amount. You best best would be the traditional scale and make sure you get a good agent. A good agent will want it to sell for max value anyway. If prices slip you could really lose money in the long run if you end up chasing a price.
I would accept the forementioned commision scale under the following stipulations; there are comparable sales in the last 90 days, 750,000 is no higher than the average sales price of the comparable sales, you agree to do a home inspection and repair all problems prior to listing, you agree to have a lockbox on the door and make the home available for showing 9am-9pm, you agree to having all legally allowed signage on property, you are willing to pay up to 2% of the buyers closing costs, you place no limits as to how and where I can market the property (within legal limits of course), you agree to make the home available for home buyers tour two weekends a month until sold, you offer a 1% bonus to the buyers agent for a signed around contract within 30days of orginal listing that closes in a period of time you find acceptable, you agree to allow me to make very small changes in price (up or down) so that I can keep it comming up on the property hot list in the MLS, and finally you agree to make any staging suggetions that I give you.

Not trying to say anything negative about Bradon, but I disagree with his comment that a good agent wouldnt agree to this commision schedule. A good agent knows what your home should sell for within 5% just from using comps. It is true that I can not make your home sell for more than it is worth, but I can find the buyer with the highest personal valuation for your home. And guarantee that I will find them if you agree to the above list of stipulations. I guess because of being totally confident in my marketing abilities I am willing to put my money where my mouth is so to speak.
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Old 04-04-2008, 05:02 PM
 
5,601 posts, read 12,669,698 times
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Quote:
Originally Posted by Jamesww View Post
I would accept the forementioned commision scale under the following stipulations; there are comparable sales in the last 90 days, 750,000 is no higher than the average sales price of the comparable sales, you agree to do a home inspection and repair all problems prior to listing, you agree to have a lockbox on the door and make the home available for showing 9am-9pm, you agree to having all legally allowed signage on property, you are willing to pay up to 2% of the buyers closing costs, you place no limits as to how and where I can market the property (within legal limits of course), you agree to make the home available for home buyers tour two weekends a month until sold, you offer a 1% bonus to the buyers agent for a signed around contract within 30days of orginal listing that closes in a period of time you find acceptable, you agree to allow me to make very small changes in price (up or down) so that I can keep it comming up on the property hot list in the MLS, and finally you agree to make any staging suggetions that I give you.

Not trying to say anything negative about Bradon, but I disagree with his comment that a good agent wouldnt agree to this commision schedule. A good agent knows what your home should sell for within 5% just from using comps. It is true that I can not make your home sell for more than it is worth, but I can find the buyer with the highest personal valuation for your home. And guarantee that I will find them if you agree to the above list of stipulations. I guess because of being totally confident in my marketing abilities I am willing to put my money where my mouth is so to speak.

Extremely interesting comments, James. Thanks, I'll analyze what you've said before I make a decision.
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Old 04-04-2008, 06:12 PM
 
Location: Salem, OR
11,011 posts, read 18,924,139 times
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Quote:
Originally Posted by scirocco22 View Post
True, Silverfall, I fully expect the house to sell for less than the asking price. But giving the selling agent full commission if he can command the asking price wouldn't be an incentive, correct?

What if I lowered the two-tier to anything between $700,000 and 750,000 would be paid 6% and anything lower than $700,000 would be 5%?
For me, I still wouldn't. The fact is there is a serious credit shortage in the jumbo loan market. It will be very difficult to sell the house just due to that factor. $750,000 may be the right value for the house, but that doesn't mean buyer's can come up with the needed cash.

For me "losing" the 1% is not an incentive to work harder. I work hard for all of my clients. I just like to look reality in the face and make intelligent decisions from there. I would want to know what budget I am working with and go from there.

I think if you do find agents that will take the tiered system, they will do so with some stipulations such as the ones that Jamesww listed out. If they don't put stipulations on that system, then I would not hire that agent. That is an agent that either doesn't understand their value, or doesn't know how to negotiate. Neither of which benefit you as a seller.
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Old 04-04-2008, 06:21 PM
 
Location: Barrington
20,089 posts, read 14,434,070 times
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Quote:
Originally Posted by scirocco22 View Post
But giving the selling agent full commission if he can command the asking price wouldn't be an incentive, correct?
A Realtor has absolutely no control over what the market will pay for your home and no amount of marketing will overcome a bad price. The very best a Realtor can do for you is advise you where to position your home versus the competition.

You get to choose to sell the competition or get sold.
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Old 04-04-2008, 07:31 PM
 
Location: Columbia, SC
7,035 posts, read 11,177,146 times
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Quote:
Originally Posted by scirocco22 View Post
Ah, I think I did see that thread. I'll go back and read it more carefully.

Ok, this whole thing sounds like it wouldn't work. I should probably just negotiate a straight commission with no bonuses or tiers involved, correct?
I think that would be your best bet. Some people get to hung up on numbers, price, and commission up front.

IMO the best approach is to interview multiple agents and pick the one you think will do the best job selling your home. Then figure out the commission and price. If you and the agent reach an agreement on listing terms (asking price, commission, etc) then congrats you hired the best agent you interviewed and got terms you were satisfied with.

I've been in competing listing appointments where I never saw the home, talked about price or commissions until we went over how to sell a home and my marketing and then left. I tell them if they think I'm the guy with the solutions for them call me back and we'll go over listing terms. That way, they are picking me as a Realtor and not my price or commission. That's how to get the best Realtor is to not get hung up on the other stuff but who's got the experience and marketing to get you top dollar. If it's a match the rest will work itself out or you can go to choice 2.
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Old 04-04-2008, 08:36 PM
 
8,761 posts, read 5,240,825 times
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I don't think I would agree to that scale. You may have your house priced too high for the market. I don't know about your area, but here that price range is staying on the market for a long time right now and has to be reduced several times to get it to move.
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Old 04-04-2008, 09:19 PM
 
5,601 posts, read 12,669,698 times
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Well, the price is hypothetical but it possibly might not be too far off.

I'm just wondering how prevalent a laddered approach to the selling agent's commission might be without regard to the exact selling price or whether the house is overpriced or not.

I know it happens but how practical is it? I'm tempted to propose this to the agent I choose to list my house but I don't exactly know exactly how to approach it.



I sure appreciate all of you who are taking the time to respond.
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Old 04-04-2008, 09:34 PM
 
8,761 posts, read 5,240,825 times
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Good luck, some agents will go for anything it seems. Let us know how it turns out.
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Old 04-04-2008, 09:44 PM
 
Location: Columbia, SC
7,035 posts, read 11,177,146 times
Reputation: 3560
Quote:
Originally Posted by Jamesww View Post
I would accept the forementioned commision scale under the following stipulations; there are comparable sales in the last 90 days, 750,000 is no higher than the average sales price of the comparable sales, you agree to do a home inspection and repair all problems prior to listing, you agree to have a lockbox on the door and make the home available for showing 9am-9pm, you agree to having all legally allowed signage on property, you are willing to pay up to 2% of the buyers closing costs, you place no limits as to how and where I can market the property (within legal limits of course), you agree to make the home available for home buyers tour two weekends a month until sold, you offer a 1% bonus to the buyers agent for a signed around contract within 30days of orginal listing that closes in a period of time you find acceptable, you agree to allow me to make very small changes in price (up or down) so that I can keep it comming up on the property hot list in the MLS, and finally you agree to make any staging suggetions that I give you.

Not trying to say anything negative about Bradon, but I disagree with his comment that a good agent wouldnt agree to this commision schedule. A good agent knows what your home should sell for within 5% just from using comps. It is true that I can not make your home sell for more than it is worth, but I can find the buyer with the highest personal valuation for your home. And guarantee that I will find them if you agree to the above list of stipulations. I guess because of being totally confident in my marketing abilities I am willing to put my money where my mouth is so to speak.
I said "many", not all. You put a lot of if's in there, meaning you would have made sure you think the top tier is a realistic sales price. Would you do it in all likelyhood the sales price was likely to be the one that got you the lowest commission? Maybe it's the pessimist coming out but if someone wants a tiered scale that way I think it's because
1-they think by offering that schedule they can get agent can to sell a home for more than it's worth
or
2-they don't trust an agent to get max value.

In reality I think the more likely result is finding an agent that tells the sellers what they want to hear rather than what is correct and the home sitting on the market until it expires with little to no marketing. James, I can tell you know your stuff and you say you would but again my first sentence had many as opposed to none and I stand by it. You are one of the exceptions.
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