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Old 10-05-2008, 12:26 PM
 
13 posts, read 32,044 times
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So the other day I met with a realtor who mentioned the standard 6% commision. Which was fine then he mentioned if I bumped his commision up to 7%, we would get more activity on the house due to realtors wanting to show it more to make more money. what's your thoughts on this?

Thanks
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Old 10-05-2008, 12:54 PM
 
Location: Nashville, TN
1,177 posts, read 3,653,796 times
Reputation: 936
In my opinion that is BS and I'd look for another Realtor.
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Old 10-05-2008, 12:57 PM
 
Location: Olympia
1,022 posts, read 3,586,260 times
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Most clients look for homes based on location, price and amenities. They could not care less how much commission is attached for their Realtor. The premise for the higher commission "lure" is that there are Realtors out there who would steer their clients to particular homes because they would earn a higher commission. Are there Realtors out there that would do it? Yes. They are absolute scum! I 'm resentful of the higher commission tactic because I don't want to be implicated if I end up showing the house.
If one of my sellers wants to add an incentive to make sure his/her house has an edge over the competition, I would recommend they add a buyer bonus, pay for staging, or lower the price.

Sandy
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Old 10-05-2008, 01:18 PM
 
Location: Houston-ish, TX
1,099 posts, read 3,279,515 times
Reputation: 391
In my area, 7% commission is the norm, 6% is considered "reduced" so it is really weird to me to hear of an agent starting at 6% and trying to get you to go up. Here we start at 7% and the sellers usually try to talk us down.
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Old 10-05-2008, 01:45 PM
 
Location: Salem, OR
13,741 posts, read 31,556,293 times
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I'm with gbone unless your home is a less expensive home (like under $100,000).
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Old 10-05-2008, 02:11 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,958 posts, read 18,532,188 times
Reputation: 6356
Because I own the real estate company and don't have to split the commission with anyone, I usually list things at 6% but offer the selling agent 4% or 66% of the total commission. I can't say it's ever made a difference in activity in the transaction, but I'd like to think it does just a little bit.

On the flip side, I've never made an effort to show property that has an increased selling commission. I just closed on a property that offered $750 bonus to the selling agent. I didn't even know about it until the property went into escrow
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Old 10-05-2008, 04:33 PM
Status: "October is the eighth month" (set 20 days ago)
 
Location: Just south of Denver since 1989
10,677 posts, read 28,491,129 times
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There is no such thing as "normal" or "standard" as far as real estate comissions go.
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Old 10-06-2008, 08:29 AM
 
Location: Barrington
41,854 posts, read 31,715,364 times
Reputation: 14078
I wonder if the OP's agent planned to offer a 4 % co-op to the buyer's broker. If so, the house probably would get more showings than one paying 3 %. More showings would not necessarily translate into an offer unless the home represented the best value in the market, based upon location, condition and price.

Agents who tout that a higher commission will get a property sold faster are trying to create the perception that agents can compel buyers to pull the trigger on the property that pays them more.

As an aside, the majority of full service Brokers in my area, charge 5%, down from 6% ten years ago.
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Old 10-07-2008, 09:21 AM
 
25,341 posts, read 37,471,570 times
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Quote:
Originally Posted by navigator72 View Post
So the other day I met with a realtor who mentioned the standard 6% commision. Which was fine then he mentioned if I bumped his commision up to 7%, we would get more activity on the house due to realtors wanting to show it more to make more money. what's your thoughts on this?

Thanks
Run!!!! This person is only interested in money and probable won't even show your home if the other agent get's half of it...This is a person that needs to be weeded out as fast as possible. just my opinion, but in todays market many people have the same opinion!!!
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Old 10-08-2008, 05:09 PM
 
1,151 posts, read 2,615,224 times
Reputation: 247
Quote:
Originally Posted by navigator72 View Post
So the other day I met with a realtor who mentioned the standard 6% commision. Which was fine then he mentioned if I bumped his commision up to 7%, we would get more activity on the house due to realtors wanting to show it more to make more money. what's your thoughts on this?

Thanks
There is a serious ethical question that is raised by this negotiation. Agents are supposed to be looking out for their clients, not maximize their commission. I would ask your agent why (s)he is trying to attract unethical agents.
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