Yet Another Commission Question (2%, agent, agreement, broker)

[willdufauve]

I asked my potential Realtor about the commission split.

She said 6% total, with 2.75% going to her as listing agent, 2% to the buyers agent, and the remaining 1.25% going to her broker.

Usually I've always paid 5% but I'm okay with paying 6% to get the house shown in a soft market. It's the 2% to the Buyer's agents that concerns me.

Shouldn't I want to entice Buyer's agents to show my house by giving them a better deal, rather than my listing agent? I'm thinking the Buyer's agents should get 2.5% or 3% and my listing agent the rest.

Advice? Thanks.

[palmcoasting]

What a round about way to say that the listing agency is getting 4% and the selling agency is getting 2%. That's all that's happening. Do I think it will work in your favor? No.

[WendyK]

I'm not sure why she isn't just splitting it 50/50 with the buyer's agent. Her arrangement with her broker doesn't matter but it should be fair with the buyer's agent. That's my opinion anyway...

[Mike Peterson]

If the agent wanted to state it like that she should have taken it a step further and said about 1.37% to the buyers agent and .63% to the buyer agents broker.

Some agents don't split 50/50 but you do want to make sure a reasonable amount is being offered in the MLS. Ask the agent why they don't split it 50/50 and see if they can give a reasonable answer.

[Captain Bill]

In your area it could be normal for the listing agent to offer the buyers agent 2% instead of 3%. As others have advised, ask the question of your agent.

[nsumner]

How many homes are you competing with? How is your market?

Very very strange that she would break it down like that. Her agreement with her broker shouldn't concern you. Buyer's agents work just as hard if not harder than listing agents and she shouldn't short change anyone. If she wants to discount anything, it should be at her expense, not yours.

[bentlebee]

This would be a big no no for me. The buyers agent is the one who brings the client. This is a lose lose situation or the listing agent must have the buyer already which I doubt.

[WhoFanMe]

Originally Posted by Captain Bill

In your area it could be normal for the listing agent to offer the buyers agent 2% instead of 3%. As others have advised, ask the question of your agent.

I agree, in my county it's normal to split 50/50, but in the county south of me it's 60/40 in favor of the listing agent. You need to find out what's the norm and be competitive.

[Silverfall]

That has to be one of the most bizarre things. I agree that some places are 50/50 and some 60/40, which is a 2.7 buyer agent commission. 2% is really low for most areas.

You should be concerned, and I would be looking at other agents. Your job is to get the best agent to sell your home, that has an effective marketing plan. It is irrelevant to you what their split is with their broker. This sounds like someone trying to justify their fee, in throwing in the broker split.

[jimj]

The question you have to ask yourself is who is the agent working for? I would guess it isn't you. I would have to agree with what Bent said...