Quote:
Originally Posted by Electrician4you
So you guys dont negotiate when you buy a car? House? Remodel? This is no different. What law states a RE agent must get 6%? Whenever I do a contract agreement i try to negotiate.
There is nothing wrong with negotiating.
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This is the correct response. Times change, supply and demand changes, the cost of doing business changes. I am willing to negotiate my commission based on the characteristics of our relationship. For example, if you are both selling your house with me and buying the next one with me, my commission will drop. If your home is more expensive and very well-maintained, I stand to make more with less effort. Therefore my commission will be more negotiable. Sometimes I will cut my commission in a new area where I’m trying to get business. If your home is located where I live and work, I am open to reducing commission. Why? Listing a home involves many many visits. If you are close to me, my costs go down and so can yours. If you are buying a home with me, I can offer a commission rebate. Why would I do that? If I think that you are a ready, willing, and able buyer who is going to act relatively quickly, then my time investment is reduced, and I can offer a rebate. If you are buying a more expensive home where I stand to make more money, I am likely to consider offering a rebate.
On the other hand, if you are being relocated and your relocation company is demanding 39% off the top, I will not cut my commission. If your house is a mess and needs repairs and updating, it is going to be a tough sell and I will not cut my commission. If your home is vacant and I am going to have to manage it, and be responsible for constant visits to monitor security and utilities, then I am unlikely to reduce my commission.
You will also find that more experienced agents are better able to offer a lower commission. Why? We are usually on a better deal, or commission split, with our brokerage. Rookie agents often get a 50-50 split. Experienced agents could be at 70/30, 80/20, 90/10 or even 100%. If I am experienced and getting a very good split with my broker, I have more room to share that with my clients and still make a decent amount for myself.
In 2018, real estate models are under stress and subject to big changes. Commissions have always been negotiable, but now they are even more negotiable. It’s a service, it carries with it a price, and as a consumer you should be attempting to negotiate that price.