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I don't know, it says exclusive in all caps along the top, and I explain that means I will be their Realtor until they buy a house. Unlike Mike. You should give him kudos, the standard agreement doesn't have a cancellation policy; he writes it in. I don't write it in, but have certainly cancelled exclusive agency when appropriate.
I cannot eat "Kudos," but accept them as offered. Well, now... maybe they come in chocolate?
Thanks!
I don't tie people down to work with a new enemy just because we have a contract.
House doesn't appraise at the inflated price, deal falls apart.
Buyer's remorse sets in during option period over paying their agent more, deal falls apart.
Slippery slope paradox: Is it acceptable to just inflate commissions at the buyer's expense, driving up home prices, adding fuel to a fire that is creating issues for many in home affordability - just to sustain a model that may not be the most effective? That comp will be a comp for six months. Yeah, yeah - I know... sellers "shouldn't care". Except sellers are also buyers somewhere else. To me, inflating the price simply to pay a higher commission rate isn't acceptable.
Then again, I've always been in a position to walk away from a deal I didn't like.
Appraisal is a condition in almost every sale, including low commission sales.
Buyer's remorse is a concern in every sale, and accommodation for it is built into a great many standard contracts.
The buyer should be much more concerned with the value received than the comps for the next guy.
Any listing agent should be focused on moving the property at price and terms acceptable to the client and not dabbling in pop social engineering.
is there any particular reason that you've chosen to direct the conversation this way?
Here's my original post, that listed 3 reasons:
For whatever reason, it seems you are ignoring 2/3 of the reasons, and even the first 2 reasons I cited (and I will say that I put them in order).
one of the foibles of resale real estate is that it's not a commodity, and it's not a product you readily choose your options, get it built, and know the price.
There is no perfect substitute of one house over another. Even in a tract neighborhood with 4 floorplans and 3 elevations, no 2 lots are the same, and no 2 sellers have kept the home the same.
Of course, when a capable agent and a well-informed Seller sit down and discuss price, the CMA shows a range at which the asking price should be set. And then the Seller chooses.
And if the home sells, fantastic, everyone did their job. But if the home doesn't sell in a reasonable amount of time to that market, then the pool of Buyers looking then are telling you the price is off.
No ulterior motives. Just killing time on a 4 hour flight to Oakland. Sign off on the last of these estate deals and quit having to fuss with real estate for a while.
And yes. CMA sets the range. Market sets the price.
Wow! Here I was thinking my question would get a few responses and be done! I don't know if I have learned more than I wanted to know or am just more confused
Yes we have been on the market since last summer; we are a unique property that we knew was going to take a specific buyer. This current buyer has actual been the most serious and given us an offer to consider. All others have been more along the lines of "let's see how desperate they are to sell" offers.
I still don't have the written offer...supposed to get it by Thursday; have learned that they have a house in a local town that they are putting on the market. (Hope it's enough "high end" for their agent!!). The fact that she'll also be earning the commission on the sale of their house makes my feathers ruffle all that more for asking another 1%.
while this agent, with thes tated "I'm too good for 2%" comment, certainly sounds at fault, it would be good to know - do you know what the common buyers agent commission is in your market?
Wow! Here I was thinking my question would get a few responses and be done! I don't know if I have learned more than I wanted to know or am just more confused
Yes we have been on the market since last summer; we are a unique property that we knew was going to take a specific buyer. This current buyer has actual been the most serious and given us an offer to consider. All others have been more along the lines of "let's see how desperate they are to sell" offers.
I still don't have the written offer...supposed to get it by Thursday; have learned that they have a house in a local town that they are putting on the market. (Hope it's enough "high end" for their agent!!). The fact that she'll also be earning the commission on the sale of their house makes my feathers ruffle all that more for asking another 1%.
But, frankly, there will be no pounding sand
We apparently have a lot of free time, and the others (not me of course) like to debate minutiae ad nauseam....
Location: Sarasota/ Bradenton - University Pkwy area
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Quote:
Originally Posted by BoBromhal
while this agent, with thes tated "I'm too good for 2%" comment, certainly sounds at fault, it would be good to know - do you know what the common buyers agent commission is in your market?
You probably shouldn't go there, "common commission." The anti-trust folks will come knocking on your door.....
as an example .... let's say you put the $1.7MM investment property on the market, and you have your agent offer buyers' agents 2%.
And for whatever reason, 90 days later it hasn't sold.
Then an agent comes with a buyer, and their written offer is for $1,700,000 with the agent getting 3% instead. As you negotiate over price, or maybe you just get mad that they asked for something other than what you offered, another agent proclaims they have a buyer with interest.
Upon being advised of the existence of an offer, and being told to "bring your highest and best, we're not screwing around", Buyer 2 produces an offer for $1,650,000, says they've done the numbers and this is what it's worth, and the 2% compensation.
Optimally I would counter with a additional % to sale price to cover the additional commission from the buyers agent but that’s not a option.
Or possibly I would offer the additional amount of .25% after closing for a total 2.25% commission.so I would give in slightly I guess. But only if you close.
But neither of those are options
Otherwise
I would counter back with agent gets 2% at 1.7 offer. I’m not sure if I’m not saying it right or you’re not comprehending it. I have my offer as to what I’m willing to pay fully disclosed before you even walk in the door. And I’m assuming you can read. I did the sold comps of the area and came with the correct sale price. I’m not overasking in fact I tend to under ask. So you read and saw the commission structure I’m offering and made contact and came with a i need more money and the lame I’m a “high end realtor” I would tell you no. That’s the offer I had and it was disclosed. So why are you now demanding more money? Your buyer wants the house and you say no I won’t represent you because I want more commission that’s between you two. I’m not forcing you go under contract. I’m simply telling you here is what I’m offering as compensation. Don’t like it don’t take it. It’s not that hard to understand that.
If you were truly working in the best interest of YOUR client you would take the 2% deal (which at 1.7 million would be pretty lucrative) and walk away smiling. But you gonna try and squeeze me? No thanks. Have a nice day watching that money go to someone else.
It’s not too long ago where agents were selling houses at 40-50% discount during the bubble and they were ecstatic to get that commission considering most agents were starting to show their ribs from starvation. . And they were doing the same work during the downturn. But all of the sudden 4% of a huge sale just isn’t good enough. For the exact same work. In fact it’s even easier now since a lot of stuff is done online docusign no5 to mention it would be a sellers market and a housing shortage with basically people fighting for it. You’re not spending hours taking pictures, prepping packages, previewing houses for clients like the old days. Technology made your job easier didn’t it?
I had a rental that stayed empty for about 4.5 months because I simply wasn’t able to find a tenant that passed background. So it stayed empty. It was a crappy time of the year to list and sometimes it just goes that way. But I’ll leave it empty before I just throw a body in there. I’m more than prepared for it.
The tenant I got is great. Sure it took a few months to get it but with what's happening around that area she’s not going anywhere.
I have never been the type where I have to get a body in there to make rent or I’ll financially foldin a month. Not hardly. I know I’m just a stupid knuckle dragging construction worker who really shouldn’t be involved in such complicated matters like House sales and money. I’ve been in the housing industry for 25 years. I’ve bought and sold houses. While I dint know everything I know my way around and books on how to sell your home aren’t that expensive.
I stopped the sale of my company years ago over $50,000 in asset sales. The guy wanted a last minute negotiation on two vehicles. That was not part of the deal. But he thought he could strong arm me. Found out different. I didn’t get to the position I’m in my letting people squeeze me.
I’ve walked away from a few house sales on my last few day/days of due diligence because the deal wasn’t sitting right with me. Ok I’m out a few hundred bucks for a home ibsoection. So what. I’m not strapping on .5 million house to appease some bs from some agent.
Main thing is I’m not afraid of saying no and walking away.
Last edited by Electrician4you; 05-01-2018 at 08:41 PM..
as best I can tell, you answer was "neither. I'd reject them both and wait until a $1.7MM offer at 2% showed up".
I could be wrong.
I do know that I never questioned your qualifications, either as a businessperson or a real estate investor/consumer.
From the beginning, I'd like to think I've been clear - ultimately the agent's commission comes down to their agreement with the Buyer, and what the Seller offers. And many have also been pretty darn clear - what a Seller should be concerned with in the end is what their net proceeds are.
Is there anything of that paragraph you disagree with?
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