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Old 05-01-2018, 01:14 PM
 
16,504 posts, read 17,550,486 times
Reputation: 23586

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Quote:
Originally Posted by Diana Holbrook View Post
I think most of us agreed a good counter offer would be that if the buyer's agent wanted the additional 1% it should be tacked onto the purchase price. The seller should NOT pay the difference... the buyer should.
And that would be fine. But that can have its own pitfalls. I didnít have time to read every response.
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Old 05-01-2018, 01:22 PM
 
Location: Cary, NC
31,621 posts, read 55,349,802 times
Reputation: 30183
Quote:
Originally Posted by Diana Holbrook View Post
I think most of us agreed a good counter offer would be that if the buyer's agent wanted the additional 1% it should be tacked onto the purchase price. The seller should NOT pay the difference... the buyer should.
Of course.
That has been the point from the get go.
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Old 05-01-2018, 01:38 PM
 
5,681 posts, read 7,268,996 times
Reputation: 3193
Quote:
Originally Posted by MikeJaquish View Post
Uh....
90%+ of the listings in my local market are offering 2.4% to buyers agents.

What are the terms of the 3% transaction you are asking about?
What did I do for the client?
Did I sell their house and this is the buy of a new house?
Interesting. I recently looked at maybe 20 homes in the "other" market in NC and probably 90% were offering 3%. The other 10% were 2.5%, 2.4% seems kinda random.

For the transaction I'm asking about, a guy named Justin Becalls found you on city-data. No sale, just a purchase and he asked you many questions via really long emails along the way. Toured 10 houses total, but he had to cancel one other contract because he thought the listing agent was insulting his language skills.
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Old 05-01-2018, 01:41 PM
 
Location: Cary, NC
31,621 posts, read 55,349,802 times
Reputation: 30183
Quote:
Originally Posted by GoPhils View Post
Interesting. I recently looked at maybe 20 homes in the "other" market in NC and probably 90% were offering 3%. The other 10% were 2.5%, 2.4% seems kinda random.

For the transaction I'm asking about, a guy named Justin Becalls found you on city-data. No sale, just a purchase and he asked you many questions via really long emails along the way. Toured 10 houses total, but he had to cancel one other contract because he thought the listing agent was insulting his language skills.
LOL
Good one.
I work for free for pathological wards of the state.

Come and get your rep points.
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Old 05-01-2018, 01:42 PM
 
Location: Athol, Idaho
2,182 posts, read 1,057,258 times
Reputation: 3184
Quote:
Originally Posted by Electrician4you View Post
And that would be fine. But that can have its own pitfalls. I didnít have time to read every response.
Name the pitfalls.
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Old 05-01-2018, 01:52 PM
 
Location: DFW - Coppell / Las Colinas
29,948 posts, read 34,553,963 times
Reputation: 35946
Op has not been back in 4 days. These threads sure take on a life of their own.
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Old 05-01-2018, 01:56 PM
 
167 posts, read 72,806 times
Reputation: 371
Quote:
Originally Posted by I love boots. View Post
Name the pitfalls.
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.
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Old 05-01-2018, 02:00 PM
 
Location: Cary, NC
31,621 posts, read 55,349,802 times
Reputation: 30183
Quote:
Originally Posted by GoPhils View Post
Interesting. I recently looked at maybe 20 homes in the "other" market in NC and probably 90% were offering 3%. The other 10% were 2.5%, 2.4% seems kinda random.

...(Howl and LMAO)...
Wake County NC.
90% of residential resale listings offer a 2.4% co-broke to buyers agents.
Agents claw to climb over them to make multiple offers on new listings.
Just searched. 1564 of 1744 residential resale listings are at 2.4%. 89.7% of them.
(Another 1344 are at 2.5%, but the bulk of those are new construction and that is their most common split. I did see three builders offering 4%. They must be dragging at hitting their numbers.)
And, the 2.4% spills into a few surrounding counties as a most common co-broke.

Orange County and Durham County and points west still have many agents clinging to a 6%, 3%/3% model, but that is starting to erode a little.

6%, 3%/3% is the "Heritage Price-fixing" model.
6%, 3.6%/2.4% is the "Nouveau Price-fixing" model.

When buyers agency was introduced to the region 35-40 years ago, it was resisted by many large established firms.
One barrier to buyers agency was to go to a 60/40 split, and to pay agents a bonus for selling an in-house listing as subagents.
Nasty stuff, that, but I think it has gone by the wayside.

The 2.4% has stuck around, though, and is the most common split locally to me.

Here is a bit more recent discussion on the Raleigh forum:
What is the typical Realtor Commission these days?

Last edited by MikeJaquish; 05-01-2018 at 02:13 PM..
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Old 05-01-2018, 02:05 PM
 
Location: Rochester, WA
3,832 posts, read 2,058,876 times
Reputation: 10577
As a frequent buyer's agent, I will accept some lower commissions, but I would really resent anything other than a 50-50 split.

We don't see uneven splits very often, that I know of.
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Old 05-01-2018, 02:24 PM
 
8,385 posts, read 7,376,508 times
Reputation: 18254
Quote:
Originally Posted by Electrician4you View Post

What exactly are the agents doing additionally at 6% that they arenít at 4%?
They are showing and selling the property with a 6% commission, and the property with a 4% commission is not being shown and no effort is going to be used to sell the cut rate commission property. It just sits there month after month.
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