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Old Yesterday, 10:21 PM
 
16,714 posts, read 17,864,242 times
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So you guys dont negotiate when you buy a car? House? Remodel? This is no different. What law states a RE agent must get 6%? Whenever I do a contract agreement i try to negotiate.
There is nothing wrong with negotiating.
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Old Today, 06:24 AM
 
Location: Cary, NC
31,795 posts, read 55,726,980 times
Reputation: 30459
Quote:
Originally Posted by Electrician4you View Post
So you guys dont negotiate when you buy a car? House? Remodel? This is no different. What law states a RE agent must get 6%? Whenever I do a contract agreement i try to negotiate.
There is nothing wrong with negotiating.
1. You are the only one in the thread mentioning 6%.

2. Otherwise, I agree with you.

Yes, 7 year old thread, but the recycled scripts on commission still infest the internet.
One of the leading expenses and the most time-consuming activity for most agents is generating business. Desperate agents donate huge portions of their revenue to their brokerages or to scam operators in hopes of getting good sales leads.
Some telemarket shamelessly for hours weekly.

Even 7 years later, the OP has an interesting question:
If the agent has a solid, proven, qualified lead in hand, should the OP reasonably benefit from saving the agent the time and expense of lead generation?
Negotiable. But very reasonable to ask.
For my prior clients? Hell, yeah.

Last edited by MikeJaquish; Today at 06:32 AM..
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Old Today, 08:59 AM
 
Location: Northern NJ
7,511 posts, read 7,440,920 times
Reputation: 10694
Quote:
Originally Posted by Electrician4you View Post
So you guys dont negotiate when you buy a car? House? Remodel? This is no different. What law states a RE agent must get 6%? Whenever I do a contract agreement i try to negotiate.
There is nothing wrong with negotiating.
This is the correct response. Times change, supply and demand changes, the cost of doing business changes. I am willing to negotiate my commission based on the characteristics of our relationship. For example, if you are both selling your house with me and buying the next one with me, my commission will drop. If your home is more expensive and very well-maintained, I stand to make more with less effort. Therefore my commission will be more negotiable. Sometimes I will cut my commission in a new area where I’m trying to get business. If your home is located where I live and work, I am open to reducing commission. Why? Listing a home involves many many visits. If you are close to me, my costs go down and so can yours. If you are buying a home with me, I can offer a commission rebate. Why would I do that? If I think that you are a ready, willing, and able buyer who is going to act relatively quickly, then my time investment is reduced, and I can offer a rebate. If you are buying a more expensive home where I stand to make more money, I am likely to consider offering a rebate.

On the other hand, if you are being relocated and your relocation company is demanding 39% off the top, I will not cut my commission. If your house is a mess and needs repairs and updating, it is going to be a tough sell and I will not cut my commission. If your home is vacant and I am going to have to manage it, and be responsible for constant visits to monitor security and utilities, then I am unlikely to reduce my commission.

You will also find that more experienced agents are better able to offer a lower commission. Why? We are usually on a better deal, or commission split, with our brokerage. Rookie agents often get a 50-50 split. Experienced agents could be at 70/30, 80/20, 90/10 or even 100%. If I am experienced and getting a very good split with my broker, I have more room to share that with my clients and still make a decent amount for myself.

In 2018, real estate models are under stress and subject to big changes. Commissions have always been negotiable, but now they are even more negotiable. It’s a service, it carries with it a price, and as a consumer you should be attempting to negotiate that price.
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Old Today, 09:34 AM
 
Location: Florida -
8,331 posts, read 10,118,796 times
Reputation: 15341
Quote:
Originally Posted by Electrician4you View Post
So you guys don't negotiate when you buy a car? House? Remodel? This is no different. What law states a RE agent must get 6%? Whenever I do a contract agreement i try to negotiate. There is nothing wrong with negotiating.
Exactly my thought! Like any contract, a RE listing (like any other major purchase or service contract) is always a negotiated agreement between two parties.

Every sensible seller will negotiate the terms of their listing contract before signing it. Negotiated variables include rate, length of the listing, showings, split with other realtors, closing services, photography/advertising, other services(?), etc.. A contract might even include a bonus for selling the property sooner ... or a penalty for not selling the property within an allotted time.

This is one of the primary ways most sellers decide which RE agent to list with. Further, unless specified, there should never be an expectation that one will subsequently 'do less, because they agreed to do the job for less.'

Every experienced RE Agent understands this, just as every experienced seller knows they will be asked by the buyer to negotiate the price and terms! A RE seller who fails to negotiate their RE listing terms, invariably 'leaves their own money on the table.'

Last edited by jghorton; Today at 09:46 AM..
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