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Old 05-01-2018, 11:22 PM
 
16,555 posts, read 17,682,015 times
Reputation: 23724

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Quote:
Originally Posted by BoBromhal View Post
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?
That pretty much covers it.

Truthfully it’s not the additional 1%. Especially at that price point. It’s really the way the agent poised themselves as I need x amount because I am a high end agent. It’s like a verbal slap in the face. That just sits wrong with me. And yes on a 1.7 mil sale it’s literally peanuts. It’s simply the sense of entitlement the agent seems to have from the post that makes me say f u mr big shot agent. (Not you or anyone on here just wanna clear it up)

Here is what I can tell you about myself.
I hired a agent to help me market and rent a vacant rental. The same rental I spoke of previously that was unrented. I offered $600 to a outside agent to bring a tenant and my agent got I think 400. So basically 1k to bring a viable tenant.
What I got was crap tenants brought from outside agents. Pretty much all were declined for one reason or another. Not because I didn’t wanna pay. The clients were simply not quality clients and I didn’t want them as tenants. I finally retracted the outside agent offer.
We finally got a good tenant. My agent was given a check for $400 to the broker. I know it was to be split.They were also given a envelope with a few hundred dollars cash as my appreciation for the hard work. And it was hard work. They may of gotten some leads which I’m ok with not a issue.
But they saw the thing through. While that cash may not of been much I did appreciate the hard work.

Now. Who do you think I’m going to call if I decide to make a sale or a purchase at some future date? You think I’m going to treat them unfairly or offer a crappy commission? If I’m treated fairly and with professional courtesy I don’t have much of a issue. I don’t even care about the 1-2% difference. I’ve paid 6% without batting a eye. I’ve also made negotiations on commissions when I knew the market I was selling in wasn’t going to be a long drag out sale. My commission offers were always accepted. I made plenty of money and I understand how business and commission pay works. I just don’t like someone telling me what Im gonna do with my money. So when someone comes to me and demands and tells me what I need to pay them or else I’m not going to be pushed around.

And to that agent I’m speaking of you know who you are. I still thank you for your hard work.
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Old 05-02-2018, 01:27 AM
 
1,525 posts, read 578,252 times
Reputation: 2954
Quote:
Originally Posted by BoBromhal View Post
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?
I’m not sure, but the older I get - the more “get everything out of every transaction” starts to ring hollow for me. Maybe it remembering a different time or something, could be just fatigue with living in a market that has gone absolutely insane.

Actually had one of my tenants approach me about buying the house. Just found out they’ve got Thing 2 on the way and started thinking about buying. The schools surrounding there are great, it a hot neighborhood. House could use some cosmetic updates to get trendy, but the roof, HVAC and systems are all in top notch shape.

They’ve offered essentially 10% lower than what I can likely get if I wait until next spring and list. However - I’d save 7-8% in fees that might be feeding something that I’m just not that into. So. Take a 2-3% hit to have a no-hassle transaction and contribute to something in their lives? Sounds tempting.

Net proceeds is right, some just don’t earn commissions.
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Old 05-02-2018, 05:18 AM
 
Location: Cary, NC
31,689 posts, read 55,513,715 times
Reputation: 30266
Quote:
Originally Posted by RoamingTX View Post
I’m not sure, but the older I get - the more “get everything out of every transaction” starts to ring hollow for me. Maybe it remembering a different time or something, could be just fatigue with living in a market that has gone absolutely insane.

Actually had one of my tenants approach me about buying the house. Just found out they’ve got Thing 2 on the way and started thinking about buying. The schools surrounding there are great, it a hot neighborhood. House could use some cosmetic updates to get trendy, but the roof, HVAC and systems are all in top notch shape.

They’ve offered essentially 10% lower than what I can likely get if I wait until next spring and list. However - I’d save 7-8% in fees that might be feeding something that I’m just not that into. So. Take a 2-3% hit to have a no-hassle transaction and contribute to something in their lives? Sounds tempting.

Net proceeds is right, some just don’t earn commissions.
Of course, you can tell them to "pound sand." Wouldn't that feel really great?
No, I didn't think so.

You have a laudable level-headed frame of mind.
A slightly different situation than the OP, also. She should keep an eye on her net in her negotiations.
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Old 05-02-2018, 05:18 AM
 
627 posts, read 384,727 times
Reputation: 1048
Quote:
Originally Posted by amy_lou View Post
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
Stay focused on your net, that's what you need to remain focused on. Forget about the buyer's agent 1% additional request, we've given you a way around that.

Also keep in mind, that this offer will now be contingent on the possible buyer's ability to sell their current home. That is the worst contingency to deal with, IMO. Make sure you are still able to list and show your house if their offer is acceptable to you as another buyer may come along that does not require that contingency and then that offer can kick out the previous offer.

Be smart and unemotional, it's a business transaction, period.
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Old 05-02-2018, 05:41 AM
 
16,555 posts, read 17,682,015 times
Reputation: 23724
Quote:
Originally Posted by RoamingTX View Post
I’m not sure, but the older I get - the more “get everything out of every transaction” starts to ring hollow for me. Maybe it remembering a different time or something, could be just fatigue with living in a market that has gone absolutely insane.

Actually had one of my tenants approach me about buying the house. Just found out they’ve got Thing 2 on the way and started thinking about buying. The schools surrounding there are great, it a hot neighborhood. House could use some cosmetic updates to get trendy, but the roof, HVAC and systems are all in top notch shape.

They’ve offered essentially 10% lower than what I can likely get if I wait until next spring and list. However - I’d save 7-8% in fees that might be feeding something that I’m just not that into. So. Take a 2-3% hit to have a no-hassle transaction and contribute to something in their lives? Sounds tempting.

Net proceeds is right, some just don’t earn commissions.
What you feel is acceptable in a transaction is up to you and nobody else. Maybe I’m just not old enough to feel that way.
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Old 05-02-2018, 06:01 AM
 
1,525 posts, read 578,252 times
Reputation: 2954
Quote:
Originally Posted by MikeJaquish View Post
Of course, you can tell them to "pound sand." Wouldn't that feel really great?
No, I didn't think so.

You have a laudable level-headed frame of mind.
A slightly different situation than the OP, also. She should keep an eye on her net in her negotiations.
Defintely a different situation. This one would probably be on the market for about a day and a half, if Austin is still boiling next spring (my magic 8 ball says “likely”).

I’d still have to deal with all of the rigamarole. Realistically, I’d probably just FSBO it, so its a bit more of a theoretical hit to the net, but at the mid/high 3’s, that other 2.5% I’d save would be something to consider.
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Old 05-02-2018, 06:04 AM
 
1,525 posts, read 578,252 times
Reputation: 2954
Quote:
Originally Posted by Electrician4you View Post
What you feel is acceptable in a transaction is up to you and nobody else. Maybe I’m just not old enough to feel that way.
Very true. And isnt that the point of the thread - finding what’s acceptable in a transaction?
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Old 05-02-2018, 07:11 AM
 
16,555 posts, read 17,682,015 times
Reputation: 23724
Quote:
Originally Posted by RoamingTX View Post
Very true. And isnt that the point of the thread - finding what’s acceptable in a transaction?
Sure. And the problem isn’t the 1% additional commission. I wouldn’t mind or care about paying the 1% if the agent was professional about it. But telling me you need 1% more because you’re a high end agent would pretty much kill any sympathy I may of had for the deal. It’s a agent that feels entitled to the comission and the way it was asked for. Almost like a demand.

There are 40 million people in my state and a huge shortage of housing. I’m sure I can get a deal that’s beneficial to all involved if I were to sell.
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Old 05-02-2018, 07:26 AM
 
6,365 posts, read 7,369,788 times
Reputation: 10833
Quote:
Originally Posted by Electrician4you View Post
There are 40 million people in my state and a huge shortage of housing.
That's the problem right there. (And it's not the housing part that is the problem.)
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Old 05-02-2018, 08:14 AM
 
Location: Georgia
4,515 posts, read 3,796,152 times
Reputation: 15517
If a buyers agent has a buyers brokerage agreement with his buyer that specifies that the agent will be paid 3% for their services, then the buyer has a choice -- they can either make up the difference between what the listing agent is willing to share with the buyer's agent out of pocket, or they can tell the seller, "Hey, I want my agent to get 3%, so I am willing to pay 1% more to make that happen." The buyers agent could also agree to waive the errant 1%, figuring 2% is better than nothing.

It's considered bad form to introduce commission into a purchase and sale agreement. Technically, the commission is shared by the listing agent with the buyer's agent. What DID frost me one time was representing buyers on a house purchase, knowing that it was only 2% -- ok, no biggie, they were young first-time home buyers who were already counting pennies, I wasn't going to rock that boat -- but got the instructions to the closing attorney (the "commission agreement", here in Georgia), only to discover that the listing agent was getting 5%, but only offering 2% to the buyer, instead of the customary 50/50 split. Discovered that it was her M.O. -- she'd go in and undercut competition by offering 1% under whatever they were offering, and then turn around and stick it to the buyer agents, so it didn't cost her a cent. When I asked her about that, she smirked and said, "Sellers market, baby -- if you don't take it, someone else will."

Markets shift. Wonder what she will be saying in a buyer's market?
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