U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 05-02-2018, 10:33 AM
 
Location: Cary, NC
31,590 posts, read 55,295,005 times
Reputation: 30145

Advertisements

Quote:
Originally Posted by I love boots. View Post
If there is no agreement can you just demand more commission like that? Why not just wait until things get rolling and then ask for 10 percent then? If you do does the buyer have to pay it?

If there is no agreement then that buyer can just tell their agent a flat no and it wouldn't be an issue. If that agent refuses to write it then they can be replaced. Especially since they have then shown the house and refused to write an offer until they know they get more commission. If there is no agreement they that buyers agent is in violation. You can't do that.
Quote:
Originally Posted by MikeJaquish View Post
No one has a firm clue what the terms of the arrangements are between buyer and agent.
Inserted the bold above, although I thought it implicit in the original statement.
Not one vainglorious titanicly-testosterone-driven sandpounder here knows the terms of any agreement between buyer and buyers agent.
Not one.
And, yes, we don't know if there even is a buyers agency agreement between the agent and buyer.

That is why we stay on the sellers' side of the table and work with what she shares.
Trying to dominate both sides of the table is a quick path to failure.

It is good to see that amy-lou has a bit of a level head and a clue about things.
Reply With Quote Quick reply to this message

 
Old 05-02-2018, 10:49 AM
 
167 posts, read 72,514 times
Reputation: 371
Quote:
Originally Posted by Brandon Hoffman View Post
Why do you care if the buyer and buyer agent are fine with this and you meet your goal of selling the home? (which we now know was a year on the market already)
I donít care. Just pointing out that the consideration of making more for the seller wasnít in scope.

Now, that said - given the fact that this home has been sitting on the market for that long, thatís a completely different beast.
Reply With Quote Quick reply to this message
 
Old 05-02-2018, 10:50 AM
 
2,634 posts, read 906,127 times
Reputation: 3245
Quote:
Originally Posted by El Senor View Post
Laugh. And decline the offer in writing to both the agent and buyer. Let those buyers know she cost them the house.
This.

The agent is trying to force the seller's hand. Completely unprofessional.
Reply With Quote Quick reply to this message
 
Old 05-02-2018, 02:16 PM
 
1,528 posts, read 724,410 times
Reputation: 2062
The buyer should directly pay 100% of the buyer's agent fees. If it's good value they will happily pay for it. If it's poor value, it will evolve appropriately in cost and service mix to align with what the buyer needs, values, and will pay for. Just like just about every other product and service in the world with few exceptions.
Reply With Quote Quick reply to this message
 
Old 05-02-2018, 02:19 PM
 
8,374 posts, read 7,362,552 times
Reputation: 18229
Lets look at the facts:

1: Seller has gotten someone to list his/her property at a cut rate commission. Listing agent, is not going to be the one that sells the property. It will in nearly every situation be sold by an agent from another office.

2: The good agents that sell the majority of the property, do not work to sell a property with a short commission. They only work to sell full commission property.

3: It has been on the market unsold for a longer period of time. A major reason it has not sold, is the good agents that sell the majority of the property are not working at selling the property.

4: A property that has been for sale for a longer than average period of time, has gotten the reputation it is overpriced, and no one is trying to sell that property at that price.

5: A better selling Agent has said, I know where I can sell your property. BUT, I don't sell property at cut rate commission rate. I will only sell it, if I get paid the normal 3% commission rate, as there are other properties for sale where I can get paid a full commission.

6: Seller has several choices to make. A---Tell the selling agent I will pay a higher commission to you if you can bring an acceptable offer. B---Tell the agent to go to H***, and refuse to pay a higher commission and just let the property sit there unsold. C---Cut the price to the point some agent will sell it off at a lower price (usually a new agent not one of the best). It is the price has gotten low enough just anyone can sell it, and some newer agent will sell the property at a cut rate price. The seller ends up selling at a price that will net far less than paying a normal commission and had the best agents in town, working to sell it.

********************************

The type of property makes it a little harder to find a buyer than a normal home on a lot in town, that the average Realtor is normally selling. The type of property will normally require a Realtor that is knowledgeable about selling that type of property. Knowledgeable Realtors for that property, are like the one that has said they can sell the property, if they are properly paid for their time and effort. The better Realtors that can sell that property do not sell property, for cut rate commissions. They simple sell another property, which requires the same amount of time and effort and makes it worth their time and effort.

It is similar for a person working a 40 hour week, for $30 an hour. The boss walks in and says I am only going to pay $20 an hour this week. The worker knows 2 places where he can go to and do the same type job, and get $30 an hour starting that day. When the boss wants to cut his income he is going to move to the better paying job.

When you cut the commission, the good agents able to sell the property at an acceptable price, are not going to work for a cut rate income. The agent has told the seller, he/she will only do the work to sell the property if she is properly paid. The agent has the right to do this, and the seller has the right to accept her offer, or reject it. It just depends on how bad the seller wants to sell. The
property has been for sale for a long time, and a lot of posters keep telling the seller that this means the property is overpriced. It may be, but more often it is the agents that can sell this type of property, are not even attempting to sell it, due to the short commission the seller wants to pay. They were able to negotiate a low commission rate with some agent, but the odds of that office selling the property are very low. Today, buyers are all told to get another office not the listing office to show and sell property.

The selling agents in the other offices, are the ones that determine if the property is going to be be sold not the listing office. The people that have the knowledge and experience to sell that type of property, don't work for cut rate commissions, as long as there are other similar properties available to show and sell that pay a full commission.

The seller must realize, the best offer they will ever get can be this one which costs a little more commission, or they can hold and wait for the low price offers. Which one will net them the most.
Reply With Quote Quick reply to this message
 
Old 05-02-2018, 02:43 PM
 
6,359 posts, read 7,321,320 times
Reputation: 10807
Quote:
Originally Posted by Electrician4you View Post
So whatís the problem? That Iím trying to get as much as I can for my property as a seller?
No. The main problem on our planet is that there are too many people. That's all I was referencing.
Reply With Quote Quick reply to this message
 
Old 05-02-2018, 03:25 PM
 
6,359 posts, read 7,321,320 times
Reputation: 10807
Quote:
Originally Posted by oldtrader View Post
Lets look at the facts:

1: Seller has gotten someone to list his/her property at a cut rate commission. Listing agent, is not going to be the one that sells the property. It will in nearly every situation be sold by an agent from another office.
You and others are free to disagree, but I don't consider 4% on a $700,000 sale to be a "cut rate" commission. It's competitive, yet still significant.

Quote:
Originally Posted by oldtrader View Post
2: The good agents that sell the majority of the property, do not work to sell a property with a short commission. They only work to sell full commission property.
However, in this case, that is a full commission.

Quote:
Originally Posted by oldtrader View Post
3: It has been on the market unsold for a longer period of time. A major reason it has not sold, is the good agents that sell the majority of the property are not working at selling the property.
We really don't know whether or not that is the case. Some properties are rather unique and simply take longer to sell...and some properties are overpriced and don't attract Buyers to look at them. In other cases, the market may simply be poor.

Quote:
Originally Posted by oldtrader View Post
5: A better selling Agent has said, I know where I can sell your property. BUT, I don't sell property at cut rate commission rate. I will only sell it, if I get paid the normal 3% commission rate, as there are other properties for sale where I can get paid a full commission.
The DOJ would probably agree with me in that we shouldn't be calling any commission a "normal" rate. Unfortunately, in many areas the rates appear to be far too standardized. I just went through the process of listing a multiple-ownership house for sale, and every one of the multiple agencies I called was stuck on 6%. I finally negotiated one down, but I fear that was a unique experience.

Quote:
Originally Posted by oldtrader View Post
When you cut the commission, the good agents able to sell the property at an acceptable price, are not going to work for a cut rate income.
That's odd. I've never let the commission amount stand in the way of helping a client make a purchase. In fact, the largest commission I've ever earned had a 2% split.
Reply With Quote Quick reply to this message
 
Old 05-02-2018, 03:31 PM
 
Location: Rochester, WA
3,827 posts, read 2,047,976 times
Reputation: 10552
I tend to agree with Jack's point of view.... Particularly on his first sentence: "You and others are free to disagree, but..."

I am not sure all - or even any - of us, should be made to fit in the same box.
Reply With Quote Quick reply to this message
 
Old 05-02-2018, 04:07 PM
 
Location: Rochester, WA
3,827 posts, read 2,047,976 times
Reputation: 10552
FWIW, I do far more buyers than listings, and I actually prefer working the buyer's side. There's more to do... more choices, and more control on the buyer's side. It's an adventure to find the perfect place, and an art form for my hubby in crafting the perfect contract that always passes our brokerage legal review on the first pass. He enjoys the details and finds fault in most of the contracts we have to read for listings.

Seller has to wait for a buyer and then hope they craft a decent offer and then actually go through with it. It's a much more passive, reactive role.

So... no, we don't prefer listings. But I don't turn them down either.

My two cents.

Last edited by Diana Holbrook; 05-02-2018 at 04:18 PM..
Reply With Quote Quick reply to this message
 
Old 05-02-2018, 04:20 PM
 
8,374 posts, read 7,362,552 times
Reputation: 18229
The buyers agents realize there are more than one property that will fit the buyers needs very well. They are going to do what any business person does, and sell what the customer/client wants to buy. Lets say there are at least 6 similar properties for sale, all would fit the buyers needs. They are going to sell one of them, and it is going to be one that is willing to pay the selling agent a decent commission. The buyers are going to be well served, and happy with the property they end up buying.

The property the OP has for sale, is harder to sell, than a single family home in town. It requires a more experienced agent to sell it.

The agents that can sell this type of property, just do not deal with cut commission rate sellers properties, which just sit on the market unsold. The good agents with the knowledge of the type of property the OP has for sale, do not work for sellers that want to cut the commission.

Thread after thread on CD are workers that complain about how cheap some employers are, and how they want to pay below market wage and benefits. They say they simply will not work for those cheap b******.

But when they sell their property, they turn into one of those cheap b*******, and expect agents to sell their property at a cut rate commission. They are not willing to take those lower paying jobs demanding more money, but they expect agents to take a low pay job (selling their property) when other sellers will pay the the amount that allows them to make a decent income.

They will not work for cut rate wages, but expect real estate agents to work for the cut rate wages they want to pay.

Those cut rate sellers, do not realize there is a lot of other property for sale that they are in competition with. When a buyer comes in and asks about a certain property (the one with a cut rate commission), they simply tell them if they want that property, talk to another agent as they do not want to get involved with that property. When asked why, the simply tell the buyer, "I do not want to be involved with that property". Or a similar reason. They don't discuss that property in any way good or bad. They don't run it down, they simply do not want to be involved with the property. They will tell the buyer, there are other properties in that category they would love to discuss with them, and if the clients want to see them they would be happy to show them.

Example: A number of years while I was an investment real estate broker, a home came on the market. It was a few blocks outside of the city, and in a subdivision of over 50 homes. All ranch style, with brick exteriors, and wood shake roofs, in a management level owners quality. The owners had just sold a business they had built from nothing, and were now multi millionaires. They bought their mansion.

The home had a reputation with two problems, and no one would even show it. The reputation was, the septic tank did not work right, and had to be pumped out every month. #2--The heating/cooling system did not work and could not get hot or cold air through it. With those two problems, it was not selling even after the price was dropped way down.

I knew it was a home my wife would love, if I could find the cost to solve those two problems. It was on lock box.

Problem #1---Septic Tank problem. I knew the Septic Service owner that serviced it, and called him. He told me there was nothing wrong with the septic system, that the owner had kept a huge above ground swimming pool with a deck, right over the septic drain field, and it could not work. He said the septic was perfect and without the swimming pool would work perfectly. I knew I could trust his judgement, as I knew him well, and sent him a lot of business over the years.

Problem #2---No heat or cool. I went under the house to where the horizontal furnace was located. I found there was a narrow 3 inch wide plate held on by two screws where I figured the filter was. I took it off, and found the problem. Unless you knew about furnaces, you would not have spotted this plate as being over the filter. In 16 years, the owners had not changed the filter and there was a solid dirt about 2 inches thick like dried mud on the intake side of the filter. Air could only be the amount that was from around the filter, so no heat or cooling. Took it out, and checked the system, and it worked perfectly.

Went back to my office, and wrote up an offer acting as a principal, taking no commission. Took it over to the selling agent, and he got the offer accepted being listed as the selling agent and also the listing agent. Before moving in, new paint, carpet, and everything to make it as good as a new home, but far less invested than the average home in the neighborhood.

Our neighbors would come over to tell us about the problems, and when I told them there were really no problems and my solution 3 different ones told me they wish they had known as it was so much nicer than their homes and so much better priced.

This is an example of agents not willing to show a home, because it was supposed to have problems. They will do it because of problems no one understands, or if the commission is too low.

I think the big argument here with most posters is, they think that they should be paid top wages or they will not work for a company, but think that agents should be willing to show and sell property where the agent is supposed to work for low wages because some seller wants to be cheap and not willing to pay the full wages the agent will have earned if they sell your property.

And problem properties where it takes a lot more effort to sell than single family homes in a prosperous town/city, will usually pay a 10% commission or the agents able to sell or exchange such properties will not work on them. About half the sales I made over the years as I specialized in problem properties, paid a 10% commission. And I never sold a property with less than a 6% commission.

Last edited by Marka; 05-13-2018 at 03:19 AM.. Reason: removed quote
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top