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Old 05-02-2018, 07:18 PM
 
5,689 posts, read 7,277,793 times
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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.

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.
I think someone said it earlier, but as a general statement this simply isn’t true. I would estimate that in today’s market at least 75% of buyers are finding the homes themselves that they see with their agent. Maybe that’s a potential reason that commission %’s should be lower, but that’s a different argument. Now I don’t know what typically happens if a potential buyer sends a house to their agent that is offering a lower commission than was agreed to. I’d guess it might be a fairly even split between the agent taking the lower commission, the buyer paying for it (or maybe they split the difference), or the buyer themselves choosing not to see/buy the house because of it.

Now, maybe OP’s is one of those 25% where a buyer’s agent helps sell it. But I think a better question than “should we give the buyer’s agent a higher commission than offered?” might be “would the property have already sold if the overall commission (for both listing and buyers agents) was higher?” ... Maybe the listing agent isn’t working very hard on it.
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Old 05-02-2018, 09:37 PM
 
Location: Salem, OR
13,751 posts, read 31,601,217 times
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Quote:
Originally Posted by GoPhils View Post
I think someone said it earlier, but as a general statement this simply isn’t true. I would estimate that in today’s market at least 75% of buyers are finding the homes themselves that they see with their agent. Maybe that’s a potential reason that commission %’s should be lower, but that’s a different argument. Now I don’t know what typically happens if a potential buyer sends a house to their agent that is offering a lower commission than was agreed to. I’d guess it might be a fairly even split between the agent taking the lower commission, the buyer paying for it (or maybe they split the difference), or the buyer themselves choosing not to see/buy the house because of it.

Now, maybe OP’s is one of those 25% where a buyer’s agent helps sell it. But I think a better question than “should we give the buyer’s agent a higher commission than offered?” might be “would the property have already sold if the overall commission (for both listing and buyers agents) was higher?” ... Maybe the listing agent isn’t working very hard on it.
According to NAR, 51% of buyers found the home they purchased by themselves online. 30% of the time the buyer agent found the house for them.
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Old 05-03-2018, 04:36 AM
 
Location: Cary, NC
31,648 posts, read 55,401,531 times
Reputation: 30198
Quote:
Originally Posted by GoPhils View Post
I think someone said it earlier, but as a general statement this simply isn’t true. I would estimate that in today’s market at least 75% of buyers are finding the homes themselves that they see with their agent. Maybe that’s a potential reason that commission %’s should be lower, but that’s a different argument. Now I don’t know what typically happens if a potential buyer sends a house to their agent that is offering a lower commission than was agreed to. I’d guess it might be a fairly even split between the agent taking the lower commission, the buyer paying for it (or maybe they split the difference), or the buyer themselves choosing not to see/buy the house because of it.

Now, maybe OP’s is one of those 25% where a buyer’s agent helps sell it. But I think a better question than “should we give the buyer’s agent a higher commission than offered?” might be “would the property have already sold if the overall commission (for both listing and buyers agents) was higher?” ... Maybe the listing agent isn’t working very hard on it.
Quote:
Originally Posted by Silverfall View Post
According to NAR, 51% of buyers found the home they purchased by themselves online. 30% of the time the buyer agent found the house for them.

With an automatic search from the MLS, with auto-email notification "near real time," if the clients and I are working with the same parameters, it is highly likely that we will "find" the listing together, albeit with them making final choices and me making recommendations.

When the client uses different parameters then what they discuss with me, they may well "find" the house.
I had a couple in the office last night and they have a target price range.

Me: "Do you want me to put a limit of $400,000 on the search, or bump it to $425,000? I'll handle it however you want."
Him: "Sure $425,000."
Her: "Let's stay at $400,000."
Me: "I will fix it at $400,000, and you are going to look around Realtor.com at any price you want to."
Laughs all around, but that is what they are going to do.

When I respect clients' wishes and cap a search and they search on a third party site at a 10% higher price point, sure, they "find" the house.
And, that is very common.
Of course, they often "find" houses that are under contract, closed sales, in flood plains, backing to freeways, adjacent to electric power transmission lines, with serious condition issues in the disclosures, etc, etc.
Sometimes I can justify a nice portion of my pay by saving them time and aggravation when I provide details or point out dealbreakers and they decide not to see properties.

Last edited by MikeJaquish; 05-03-2018 at 05:18 AM..
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Old 05-03-2018, 04:42 AM
 
6,361 posts, read 7,344,952 times
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The heart of the problem, IMO, is that too many real estate licensees consider themselves to be salespersons. You can't relegate yourself to being a salesperson and also be a good agent. Unfortunately, licensing laws have yet to catch up with the evolving role of a Buyer's Agent.

Last edited by Marka; 05-13-2018 at 04:20 AM.. Reason: removed quote
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Old 05-03-2018, 06:19 AM
 
5,689 posts, read 7,277,793 times
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Quote:
Originally Posted by Silverfall View Post
According to NAR, 51% of buyers found the home they purchased by themselves online. 30% of the time the buyer agent found the house for them.
Interesting. What about the other 19%?

Quote:
Originally Posted by MikeJaquish View Post
With an automatic search from the MLS, with auto-email notification "near real time," if the clients and I are working with the same parameters, it is highly likely that we will "find" the listing together, albeit with them making final choices and me making recommendations.

When the client uses different parameters then what they discuss with me, they may well "find" the house.
I had a couple in the office last night and they have a target price range.

Me: "Do you want me to put a limit of $400,000 on the search, or bump it to $425,000? I'll handle it however you want."
Him: "Sure $425,000."
Her: "Let's stay at $400,000."
Me: "I will fix it at $400,000, and you are going to look around Realtor.com at any price you want to."
Laughs all around, but that is what they are going to do.

When I respect clients' wishes and cap a search and they search on a third party site at a 10% higher price point, sure, they "find" the house.
And, that is very common.
Of course, they often "find" houses that are under contract, closed sales, in flood plains, backing to freeways, adjacent to electric power transmission lines, with serious condition issues in the disclosures, etc, etc.
Sometimes I can justify a nice portion of my pay by saving them time and aggravation when I provide details or point out dealbreakers and they decide not to see properties.
Fair enough, although even if you “find it together” via them picking listings that come from your MLS search, I’m sure that doesn’t exclude listings with a lower commission than what was agreed to, correct? Is it even possible to do that?
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Old 05-03-2018, 06:30 AM
 
Location: Cary, NC
31,648 posts, read 55,401,531 times
Reputation: 30198
Quote:
Originally Posted by GoPhils View Post
Interesting. What about the other 19%?



Fair enough, although even if you “find it together” via them picking listings that come from your MLS search, I’m sure that doesn’t exclude listings with a lower commission than what was agreed to, correct? Is it even possible to do that?
We have a field to search by buyers agent commission level, yes.
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Old 05-03-2018, 06:58 AM
 
Location: Cary, NC
31,648 posts, read 55,401,531 times
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Quote:
Originally Posted by jackmichigan View Post
No. The main problem on our planet is that there are too many people. That's all I was referencing.
Who gets to choose who is extraneous?

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Old 05-03-2018, 07:00 AM
 
Location: Philadelphia/South Jersey area
2,301 posts, read 1,046,985 times
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Quote:
Originally Posted by amy_lou View Post
We have a house +acreage and when we chose our realtor, we all agreed that the commission would be 4%. We have a potential buyer, and their agent is stating that she is a "higher end" agent and accepts no less than 3%. I feel like if you're showing our property to your buyers and the notes states 2%/2%, that is what you are going into it knowing. If she's wanting more commission, than should we include that 1% in our counter? I feel like if the buyers want her as an agent, then they need to pay her extra 1% in the sale of the house/property.

Thoughts?
I want to be skinny and Rich. We don't always get what we want.
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Old 05-03-2018, 08:09 AM
 
6,361 posts, read 7,344,952 times
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Quote:
Originally Posted by MikeJaquish View Post
Who gets to choose who is extraneous?

I'm sure there are plenty of people on C-D who would welcome the role!

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Old 05-03-2018, 08:23 AM
 
Location: Cary, NC
31,648 posts, read 55,401,531 times
Reputation: 30198
Quote:
Originally Posted by jackmichigan View Post
I'm sure there are plenty of people on C-D who would welcome the role!

Careful... They can smell your brains. So rich, and spicy!
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