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So. Here’s where the slippery slope comes in for me on the value of an agent. If the buyer is so willing to cough up the point to get the house... doesn’t that mean my listing agent undercut my price point? (Assuming full list).
To me, it’s just a bad look all the way around. Commission was 2/2 in the listing - take your 14 G’s and do your job.
Again, we don't know what's happening on their side. We usually see a 3% co-broke in my market. I had a listing get an offer and the agent wrote in the offer that they were to get 3.5% commission. I thought it was greedy by the other agent but we just countered at a net my seller was happy with. Buyer took and property closed right on schedule.
It turns out the buyer's funds were tight. The agent paid for the inspections and appraisal for the buyer so the extra .5% was to reimburse her. She wasn't being greedy. She took a risk and put her $$$ out to help the buyer buy a home. I'm not sure why she did but it worked out for everyone.
I know the OP is in a different price point and this isn't likely the case here, but I'll re-iterate again just worry about your money and let the buyer worry about theirs. You know what they say when you assume?
Again, we don't know what's happening on their side. We usually see a 3% co-broke in my market. I had a listing get an offer and the agent wrote in the offer that they were to get 3.5% commission. I thought it was greedy by the other agent but we just countered at a net my seller was happy with. Buyer took and property closed right on schedule.
It turns out the buyer's funds were tight. The agent paid for the inspections and appraisal for the buyer so the extra .5% was to reimburse her. She wasn't being greedy. She took a risk and put her $$$ out to help the buyer buy a home. I'm not sure why she did but it worked out for everyone.
I know the OP is in a different price point and this isn't likely the case here, but I'll re-iterate again just worry about your money and let the buyer worry about theirs. You know what they say when you assume?
Of course. Just one of many reasonable possibilities...
Average sale ~$300,000.
Average commission ~$7200.
1% ~$72.00
I can't say that I would ever let 72 bucks get in the way of a deal closing.
I’m sure you understood exactly what I meant. No not 1% of full commission pay. I meant your 3% so basically 1/3 of your commission. So instead of 3% comission on the sale you only get 2% to make it happen. You’re stating that the seller should give up the 1% needed for the agent to make his 3% comission. I’m asking you the same 1% you so nonchalantly seem the seller should just give in to. So basically 2300 dollars if you wanna go averages. c . You willing to do that? You seem to be pretty carefree with someone else’s money
I have a rental that’s worth about 1.7 million. At 4% I’m giving a 70,000 dollar comission. At 6% I’m giving 100,000 dollar comission. What exactly does a agent do more for the additional 30,000 in compensation? Nothing that’s what.
Last edited by Electrician4you; 05-01-2018 at 10:29 AM..
I have a rental that’s worth about 1.7 million. At 4% I’m giving a 70,000 dollar commission. At 6% I’m giving 100,000 dollar commission. What exactly does an agent do more for the additional 30,000 in compensation? Nothing that’s what.
Most of us never sell anything in the luxury market. Those that do are heavily involved in that network. It's a "who you know" type of business.
People who know, like & trust you understand this is the livelihood that supports our family.
You need better math skills or was ^ an aversion technique
$300,000 x 2.4% = $7,200
OR
$300,000 x 1.4% = $4,200.
You would willingly forfeit $3,000.00 for a sale?
Oh, it was a "joke." Right......
Clearly my skills in arithmetic are as superb as the excellent and insightful advice I have provided throughout this thread.
Your calcs show me giving up ~42% of my commission.
Would I?
Maybe I would. It depends, but I would know a whole lot more about the transaction than the sum total of knowledge of all participants in the thread, with the exception of the OP.
I’m sure you understood exactly what I meant. No not 1% of full commission pay. I meant your 3% so basically 1/3 of your commission. So instead of 3% comission on the sale you only get 2% to make it happen. You’re stating that the seller should give up the 1% needed for the agent to make his 3% comission. I’m asking you the same 1% you so nonchalantly seem the seller should just give in to. So basically 2300 dollars if you wanna go averages. c . You willing to do that? You seem to be pretty carefree with someone else’s money
I have a rental that’s worth about 1.7 million. At 4% I’m giving a 70,000 dollar comission. At 6% I’m giving 100,000 dollar comission. What exactly does a agent do more for the additional 30,000 in compensation? Nothing that’s what.
Here is a concept I have promoted throughout the thread, that is worth your study:
"Net Proceeds."
Here is a discussion on the definition of "Net Proceeds" for those who are new to the concept:
As long as the OP receives an acceptable "NET PROCEEDS from the sale," why quibble from superstition about the structure of the transaction?
Bake the commission into an increased counter, and get the deal done.
BTW, you shouldn't attempt to quote my fees.
When do I ever get 3%?
Last edited by MikeJaquish; 05-01-2018 at 11:38 AM..
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