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I don't think all agents should share commission, but there are certainly instances where it is acceptable. I was not an agent when I requested the split...we both won. If you think my friend earned/deserved nearly $27,000 for ZERO work then you are not living in the real world.
You feel that no matter how little work you do you are entitled to a full commission no matter what. I think that is absurd...I think that makes every transaction seem the same to you no matter what. I think that is a very narrow view on the world. You refuse to share commission period. You sound like the guy who sold his truck b/c his friends kept asking him for help moving....a good time friend.
Your analogies are laughable.
If someone wants to get a commission, then they can get their real estate license. I pay referral fees to other agents who give me business, and they pay me referral fees when I send them business.
But if you are not in the real estate business, and need an agent to assist you, no matter the amount of work, then you have no right to any of my earnings, and you won't get any. It is also not the amount of work, but the knowledge, and skills of guiding one through a transaction, and also the legal risks that agents assume on every transaction because even that so called friend who wants part of his friends commission will sue his agent friend if anything goes wrong in the transaction.
You think things are absurd because you are not making your living as a Realtor. Join the real world and you'll change your mind.
My philosophy is very simple:
I won't ask you to give me any of your earnings to buy my house, and you don't ask me for any of my earnings to buy your house.
If someone wants to get a commission, then they can get their real estate license. I pay referral fees to other agents who give me business, and they pay me referral fees when I send them business.
But if you are not in the real estate business, and need an agent to assist you, no matter the amount of work, then you have no right to any of my earnings, and you won't get any. It is also not the amount of work, but the knowledge, and skills of guiding one through a transaction, and also the legal risks that agents assume on every transaction because even that so called friend who wants part of his friends commission will sue his agent friend if anything goes wrong in the transaction.
You think things are absurd because you are not making your living as a Realtor. Join the real world and you'll change your mind.
THIS is precisely why agents have bad reputations. You think no matter how little you do that you deserve what is coming to you because you have a license, as if that license makes you special....You have lots of good input on here, you have lots of knowledge, but you are stubborn.
Its not about making a living or not making a living at what your doing...its about the PAY being commiserate with the amount of work. In my case and in the OP's case he just wants to get an agent in order to get the builders advertising budget credited partially to him, partially to his friend...He did not ask his agent to do anything other than sign on the dotted line.
EVERYONE wins. The agent gets paid for nothing, the buyer gets a reduced price in the form of a rebate...but in your world - you are the only winner...and I am supposed to think the poster is being greedy...I dont see it. I see greed coming from only one person.
Its not about making a living or not making a living at what your doing...its about the PAY being commiserate with the amount of work. In my case and in the OP's case he just wants to get an agent in order to get the builders advertising budget credited partially to him, partially to his friend...He did not ask his agent to do anything other than sign on the dotted line..
You know that a commission does not have anything to do with the amount of work. It is an agreed on amount to be paid to to the agent contingent on a closed transaction. Whether the agent spends 5 minutes or 500 hours he will be paid the same amount.
Again, it is not about the time, it is about the knowledge, skills and legal risk. When the agent signs his name to anything in a transaction, the agent is exercising his license and takes on legal risk.
Your argument is simply based on your opinion that an agent should give up his commission on request, which is false. However, you have not advanced any argument justifying a person not having a real estate license being entitled to any part of an agents commission.
If an agent feels he has to give rebates to get work, then that is his problem, and he is entitled to do that. But that does not mean that any non-agent has the right to any part of the agent's commission.
.You have lots of good input on here, you have lots of knowledge, but you are stubborn.
.
Of course I'm stubborn when someone wants to use my knowledge and at the same time take my pay.
I'm related to a stubborn family, 2nd cousin, 4th removed to Col William B Travis who displayed his stubbornness at the Alamo. So calling me stubborn does not hurt my feelings, if that was your intent.
You know that a commission does not have anything to do with the amount of work. It is an agreed on amount to be paid to to the agent contingent on a closed transaction. Whether the agent spends 5 minutes or 500 hours he will be paid the same amount.
I know this, those capable sellers/buyers often learn this, and it is a major reason for the complaints. There is almost no industry in existence where pay is not based on the amount of work that is put into the transaction.
Quote:
Originally Posted by Captain Bill
Again, it is not about the time, it is about the knowledge, skills and legal risk. When the agent signs his name to anything in a transaction, the agent is exercising his license and takes on legal risk.
It is about the time and the quantity/quality of work....There is just no logical reason for any pay to not be based on the work done. Its not just a freebee.
Quote:
Originally Posted by Captain Bill
Your argument is simply based on your opinion that an agent should give up his commission on request, which is false. However, you have not advanced any argument justifying a person not having a real estate license being entitled to any part of an agents commission.
I am not arguing agents should give up commission on request. I am arguing it should be negotiable based on what is needed (please spare me the fee is negotiable line, I know what the law says) I am arguing that when the agent has not had to do any real work, or take any real risk, that their pay should be based on the actual work/risk not just an arbitrary fee that you are accustomed to receiving.
The OP had a neighborhood, had a house chosen, has everything. He was asking whether or not he could ask an agent to put his license on the bottom and for both of them to get something out of it.
Your answer is a resounding no. It is your right. I think it's stubborn (which was not an insult)...its just stubborn. You want the most that is possible any and every time you put your license number down regardless of work. You think anyone who asks otherwise is greedy.
I'm sorry, I just can not separate the amount of pay from the amount of work/risk. In his case and in my own case the two are irreconcilable. No work = less pay. This is the real world....
Like it or not, this is where the bad rep comes from....It is stubborness like this that people talk about at parties...they say, I found a property, did my research and Im ready to buy this property...I would do this myself, except they won't negotiate the 3% commission with me...So Im gonna call up my friend Bill and see if we can split the $25,000 commission in half and he just put his name down for me...
Two weeks later the folks run into each other again and they ask about the property...The buyer then says - Ya we closed on it, but we got ripped off - Bill would not help us out at all...We needed him for the offer b/c the listing agent would not work directly with us b/c she was dumber than a sack of rocks, but Bill said he didn't care if he worked 5 minutes or 5 months he was going to keep the whole $25,000.
The other person then says - well that sucks, Ill be sure not to deal with Bill in my future transactions - it doesn't sound like he helped you at all and he got paid $25,000 for nothing.
--I have had that EXACT conversation with at least 10 people--nearly word for word....it could go so much differently and everyone would be happy if there were more flexible agents who charged based on what they brought to the transaction rather than whatever it is that is on the MLS listing.
...I'm sorry, I just can not separate the amount of pay from the amount of work/risk. In his case and in my own case the two are irreconcilable. No work = less pay. This is the real world.......
Just curious, so if lawyers take on cases based on a contingency fee, usually a % of the awarded amount if they win, do they adjust the fee based on the amount of work they actually put into it? Less if it settles quickly, more if not?
I know this, those capable sellers/buyers often learn this, and it is a major reason for the complaints. There is almost no industry in existence where pay is not based on the amount of work that is put into the transaction. .
The listing agent and seller determine the pay that is to be paid to the listing agent. There is no fee structure for non-licensed persons. They do not get paid.
Now instead of all the inane analogies, explain to me how you feel that a non-licensed person has any right to the pay that a seller offers the buyers agent.
The fact that you think agents are overpaid is not a reason. It's just an erroneous personal opinion, because you are not operating a real estate business, and have no concept of what it takes to run a business.
You act as a philanthropist for your friends and relatives, and that's fine. I am not a philanthropist, and neither are any of us who do this for a living.
If someone wants to earn money from real estate transactions, then do like the rest of us have done; get a license and go into business and pay the expenses to be in business; but don't expect me to pay for your house.
[quote=Captain Bill;27680182]The listing agent and seller determine the pay that is to be paid to the listing agent. There is no fee structure for non-licensed persons. They do not get paid.
Now instead of all the inane analogies, explain to me how you feel that a non-licensed person has any right to the pay that a seller offers the buyers agent.
Its real simple. I have a transaction. I will use you and you will make money for doing LITERALLY nothing, but only if I benefit as well...if you wont, I find someone who will. I need just a license number, nothing more. And in these circumstances I absolutely do not consider it pay in the sense that you earned it - b/c it is completely un-earned here.
I am not the greedy one here. You are. You see every transaction no matter how simple as earned, even when its not.
Quote:
Originally Posted by Captain Bill
The fact that you think agents are overpaid is not a reason. It's just an erroneous personal opinion, because you are not operating a real estate business, and have no concept of what it takes to run a business.
I dont think all agents are overpaid - but there are plenty of transactions where the traditional 2.5-3% is a gross overpayment. I've listed two of them here...you maintain your greed, and you solidify yourself as an agent that is talked about at parties and among others as someone they would not recommend. Its your niche - work with folks once, that is fine - but you may find you made more money, and people would like you more if you were more reasonable, more flexible.
Quote:
Originally Posted by Captain Bill
You act as a philanthropist for your friends and relatives, and that's fine. I am not a philanthropist, and neither are any of us who do this for a living.
I just dont see every person I know as a paycheck. I see friends as people who do favors for me, and I do favors for them. I have no problem helping folks out, especially when its no skin off my back.
Quote:
Originally Posted by Captain Bill
If someone wants to earn money from real estate transactions, then do like the rest of us have done; get a license and go into business and pay the expenses to be in business; but don't expect me to pay for your house.
Nobody is asking you to pay for their house. You have been presented with an option, make money for doing nothing, or tell the buyer he is a greedy jerk. You choose the latter, therefore you make nothing. Not smart business....And I did get my license - solely for the purpose of not dealing with ridiculous agents who think like you.
There is almost no industry in existence where pay is not based on the amount of work that is put into the transaction.
Anyone who is a salesman falls under your "no industry in existence". Some sales are really easy. Those take less time. Some sales are really hard. Those take more time. If the sales price is the same, they get paid the same. The amount of effort to get the sale closed is irrelevant.
Anyone who is a salesman falls under your "no industry in existence". Some sales are really easy. Those take less time. Some sales are really hard. Those take more time. If the sales price is the same, they get paid the same. The amount of effort to get the sale closed is irrelevant.
Well, any commission-paid salesperson, yes.
OTOH, I am commission-paid, and close all my "sales" at zero cost to the client. My commission is delivered upon successful accomplishment of helping the client meet client-determined goals.
And, this worthy question languishes without an answer:
Quote:
Originally Posted by rjrcm
Just curious, so if lawyers take on cases based on a contingency fee, usually a % of the awarded amount if they win, do they adjust the fee based on the amount of work they actually put into it? Less if it settles quickly, more if not?
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