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My husband and I just increased the sellers commission by 1/2% to see if that gets them more "motivated". Have you seen that tactic, and do you think it works??
Liz, I'd like to know how you accomplished that. We can't seem to get any realtor to agree to it, though I've been told numerous times that in negotiating a listing agreement it's important to make sure the selling agent should get more than 50% of the commission. The standard response we get is "all the realtors around here are giving 50% which is standard". Period.
How do you induce a realtor to consider 60%? We have definitely decided to sell our NH home, and would like that to be part of the contract to motivate other agents to show the home (market is very difficult in NH right now, prices are down, lots of people trying to sell)
My husband and I just increased the sellers commission by 1/2% to see if that gets them more "motivated". Have you seen that tactic, and do you think it works??
Any feedback welcome.
Liz
yes sometimes if you raise the commission to the one who brings in the buyer it causes more activity 3.5% and up usually works well
but make sure that the house is priced right also or there still won't be enough activity
Liz, I'd like to know how you accomplished that. We can't seem to get any realtor to agree to it, though I've been told numerous times that in negotiating a listing agreement it's important to make sure the selling agent should get more than 50% of the commission. The standard response we get is "all the realtors around here are giving 50% which is standard". Period.
How do you induce a realtor to consider 60%? We have definitely decided to sell our NH home, and would like that to be part of the contract to motivate other agents to show the home (market is very difficult in NH right now, prices are down, lots of people trying to sell)
My realtor suggested to bring the commission for the seller (whoever that may be) to 3.5% instead of 3%. My realtor will keep hers at 3%. I sure hope this works!! Our house is priced very well, in fact, I think it is below what it should be at. What we are up against is the backyard. It has a pool/jacuzzi and fire pit, and that is about it. People want all that plus a large lawn. That is our only problem.
My husband and I just increased the sellers commission by 1/2% to see if that gets them more "motivated". Have you seen that tactic, and do you think it works??
Liz
Would you possibly mean the selling commission to the selling agent or the buyers agent?
I mean aren't you the sellers - and are getting the equity minus the selling costs?
There are a lot of realtors that really advocate increasing the commission to the selling agent or a bonus to the selling agent. Problem is, it's still the BUYER who determines which home he's going to purchase. Have you considered some sort of incentive to the buyer, such as paying some closing costs, or some sort of perk to the buyer (such as "free hot tub valued to $3000 with acceptable contract), etc. (That was probably a poor example, but you get the idea. ;-)
I'm not a REA, but I'm in the process of selling and buying a home due to relocation. I'm not sure how a bigger commission to the seller's agent is an incentive. I've seen sellers offer help with closing costs as an incentive. Also, a REA acquaintance who has had a hard time selling one of her homes recently offered a buyer agent bonus out of her own 3% commission to attract prospective buyers (if the buyers don't have an agent this bonus goes directly to the buyer). Good luck.
Last edited by mlv311; 05-08-2007 at 04:54 PM..
Reason: clarification
I'm not a REA, but I'm in the process of selling and buying a home due to relocation. I'm not sure how a bigger commission to the seller's agent is an incentive. I've seen sellers offer help with closing costs as an incentive. Also, a REA acquaintance who has had a hard time selling one of her homes recently offered a buyer agent bonus out of her own 3% commission to attract prospective buyers (if the buyers don't have an agent this bonus goes directly to the buyer). Good luck.
ok as an agent let me give you this in black and white
on the mls there is a little section in there for agents it tells them how much they will recieve in commission when they bring a ready willing and able buyer to the closing table for that house
Do you think that if there are say 4 houses that fit my clients criteria and one is offered at 2%
there are 2 of them at 3%
and then there is one of them at 3.5%
what order will I show those houses in????
you're dang skippy
I have to make money too
I do not know which one my client will pick but when comparing apples I will pick the ripest one first
That is why you offer the bulk of your money to the buyers agent
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I am confused with your terminology
