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Why is the commission a concern for you, as a buyer? That's between the seller and their agent.
Of course.
But if the listing firm is looking at getting $15,000 versus 30,000 (talking firm, realize split between agent/company), I am thinking they may be more anxious to close a deal by perhaps shaving a point or two off their commission as part of the negotiating process.
Worse case scenario, they don't want to negotiate their commission to make a sale, what do I have to lose??
We have very low opinions of real estate agents (after 16 house transactions over 40 years); the fewer I have to deal with, the better.
Any fat in the transaction is a bill paid with buyer money.
Well OP didn't actually say what they feel is a good commission for the agent. That would clarify more. However, this is why it's not up to the buyer. They shouldn't use the commission as leverage for getting the house cheaper.
But if the listing firm is looking at getting $15,000 versus 30,000 (talking firm, realize split between agent/company), I am thinking they may be more anxious to close a deal by perhaps shaving a point or two off their commission as part of the negotiating process.
Worse case scenario, they don't want to negotiate their commission to make a sale, what do I have to lose??
We have very low opinions of real estate agents (after 16 house transactions over 40 years); the fewer I have to deal with, the better.
What do you have to lose? The home you want
I can see you have low opinions of agents. Thanks for stating that much.
Some agents will reduce commission by a percentage for dual representation, depends on the situation and the agreement between the seller and agent. However to go into the buying process ready to use commission as negotiating leverage doesn't seem to be a good idea.
Well OP didn't actually say what they feel is a good commission for the agent. That would clarify more. However, this is why it's not up to the buyer. They shouldn't use the commission as leverage for getting the house cheaper.
And...
Quote:
Originally Posted by Hollynla
What do you have to lose? The home you want
....
Right.
It is called "Tripping over a dollar to pick up a nickel."
If it is about buying a house, that is a goal to keep an eye on. If it is more a game of winning the commission conversation, that is an unfortunate focus, but a good thing for the agent to know up front.
If you live in an area where the seller's agent could get the full 6% commission, you could try to use that as a selling point to get preferential treatment. Technically they are not supposed to give you preferential treatment, but that's kind of like saying police officers are supposed to follow the same laws they enforce... not all of them are going to do that.
You might be able to say get noticed over 5 other bids by telling the agent they'll get the entire 6%.. there's nothing against the law to mention this to them and see what their response is.. it would help to know enough about real estate yourself so that you can do some of the heavy lifting that having your own representation would have gotten you, though. Sometimes in a hot market giving them the full 6% could be the difference between getting that house and not getting it.... speaking strictly as someone who does not work in real estate, I would think that I would give preferential treatment to these folks if I was a realtor...
You are right 6% commission in a 500K house is too high, and people who chime in saying stuff like it's "none of your business" are clearly ones taking advantage of the system the way it's set up. The only way that system will change is if normal people, like you and me, haggle with realtors to get them to come down on commission... some realtors advertise 4% commission on the radio, so now they are competing with each other (seems silly to do that.. why not keep the 6% racket going as long as you can) In our small town the 2 major realtors do commission sharing and have formed a loose sort of alliance.. neither one would try to compete with the other by advertising lower commission.. they both benefit more by quieting colluding or at least not competing with each other in any obvious manner... though I've personally had individual agents offer me 1% of their 3% commission to work with them... that guy is gone now though he left for warmer pasture.. he started out in this town before I was born.. he was the oldest remaining agent until his semi retirement last fall. As people I do find some of the old timers have interesting stories to tell.
If you live in an area where the seller's agent could get the full 6% commission, you could try to use that as a selling point to get preferential treatment. Technically they are not supposed to give you preferential treatment, but that's kind of like saying police officers are supposed to follow the same laws they enforce... not all of them are going to do that.
You might be able to say get noticed over 5 other bids by telling the agent they'll get the entire 6%.. there's nothing against the law to mention this to them and see what their response is.. it would help to know enough about real estate yourself so that you can do some of the heavy lifting that having your own representation would have gotten you, though. Sometimes in a hot market giving them the full 6% could be the difference between getting that house and not getting it.... speaking strictly as someone who does not work in real estate, I would think that I would give preferential treatment to these folks if I was a realtor...
You are right 6% commission in a 500K house is too high, and people who chime in saying stuff like it's "none of your business" are clearly ones taking advantage of the system the way it's set up. The only way that system will change is if normal people, like you and me, haggle with realtors to get them to come down on commission... some realtors advertise 4% commission on the radio, so now they are competing with each other (seems silly to do that.. why not keep the 6% racket going as long as you can) In our small town the 2 major realtors do commission sharing and have formed a loose sort of alliance.. neither one would try to compete with the other by advertising lower commission.. they both benefit more by quieting colluding or at least not competing with each other in any obvious manner...
The agent must present all offers on the property whether they would be dual agent or splitting with buyers agent. What you are suggesting seems unethical and if the other buyers (with offers) knew, the agent could be fined or have their license suspended.
And just to make sure, you do realize the agent does not pocket the full $ amount of that commission? The brokers get their cut too.
First, you have to find a good agent who will take the time to take you around to many places (some of which you picked and some chosen by the agent); will listen to you about what you like and don't like about these places, and process this; and will continually update this information in showing you new places that fit your likes and avoid your obvious dislikes. This is an iterative process on the agent's part, as you get to know the market better and the agent gets to know you better.
First, you have to find a good agent who will take the time to take you around to many places (some of which you picked and some chosen by the agent); will listen to you about what you like and don't like about these places, and process this; and will continually update this information in showing you new places that fit your likes and avoid your obvious dislikes. This is an iterative process on the agent's part, as you get to know the market better and the agent gets to know you better.
Our experience (buying then selling 8 homes over 40 years) is the opposite. Agents want to show us houses we have already told them we are NOT interested in, either because of location, size, amenities.
Often agents want to show all of their company's listings, regardless of OUR interest. They give us all sorts of excuses to do this, "oh, you have to see the inside (even tho we've seen the pics and read descriptions on line). Or "you could buy this and still afford to redo the kitchen (even tho we've told them we do NOT want to do any work on the house). Or "you can always add a pool" again, after telling them we have absolutely NO desire to do that.
They waste our time, then they get all "boo-hoo, I've shown you all these houses, but you still haven't bought one."
Useless!! And this is not based on one or two transactions....it has been true in all of our agent-assisted sales/buys. Lots of people become agents who basically are unemployable in a real business.
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