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Because the good friend needs to put food on the table for her kids and is nice enough to do 4 percent for me when no other realtors out there are willing to!!! Mindy
Because the good friend needs to put food on the table for her kids and is nice enough to do 4 percent for me when no other realtors out there are willing to!!! Mindy
Your good "friend" isn't doing you any favors. How is making your house less attractive to buyers nice for you? As a buyer I would not want to look at your house after I realized I would have to pay the difference in the commision to my realtor. I would pass you by and buy a different house. I don't know your good friend and don't feel the need to fork over my money to make up the 1% you think he is saving you. Your friend could very well be costing you a lot more than the 1% you think you are saving if your houses ends up sitting on the market becasue of this.
Simply put, my agent would be more than happy to show me your house, but I wouldn't ask him to. I need to put food on my table too.
Sorry people but there is no need to be nasty. Where I live buyers agents only get 2.5% so to not show a buyer a house for that .5 percent is pretty bad. Mindy
Sorry people but there is no need to be nasty. Where I live buyers agents only get 2.5% so to not show a buyer a house for that .5 percent is pretty bad. Mindy
I hope you didn't find my response nasty. That was not my intent.
Just to be clear, my realtor would be more than happy to show me your house...even if you offered 0%.
I have a signed agreement (contract) with him so he knows he will get paid from me if not from you.
It would be me the buyer, who would not want to look at your house. Unless your market is incredibly unique I would most likely be able to find a similar house where I would not have to pay the commission you are trying to save.
So it isn't the realtor's fault. It isn't his call to decide what house I go see. It would be my call as the buyer.
Mindy,
Most good agents have buyers sign buyer agency agreements, so buyers need to make up any difference in fees. I know my clients sign them.
I'd say about 50% of my buyers elect to see all of the listings knowing they may have to make up some difference themselves. I show lower commission homes as a result.
Obviously, I am not an expert in your area, but it really depends on the firm and what their common offering is. Honestly, if your friend would take 1.5% and offer 2.5%, you'd have a better shot. There is so much inventory that buyer's don't have much of an incentive to bring more money to the closing table. Acreage properties would probably be the exception since they are all so unique.
I can tell you for Salem OR that the average large brokerage has a termination rate of 25% (meaning clients terminate listings 25% of the time). Our local discounters have a 49% termination rate, meaning 1/2 of their clients terminate the listing. If agents were showing their homes, I would expect them to have a similar termination rate to the average brokerage.
sorry north raleigh I was not referring to you. I didnt realize you had to give a buyers agent a commission to find a house for you. I thought they just get the 2.5 commission or 5% commision (if it is there listing) So agents get the 2.5% plus money from the buyer. How much does the buyer give them? Mindy
Mindy,
Most good agents have buyers sign buyer agency agreements, so buyers need to make up any difference in fees. I know my clients sign them.
I'd say about 50% of my buyers elect to see all of the listings knowing they may have to make up some difference themselves. I show lower commission homes as a result.
Obviously, I am not an expert in your area, but it really depends on the firm and what their common offering is. Honestly, if your friend would take 1.5% and offer 2.5%, you'd have a better shot. There is so much inventory that buyer's don't have much of an incentive to bring more money to the closing table. Acreage properties would probably be the exception since they are all so unique.
I can tell you for Salem OR that the average large brokerage has a termination rate of 25% (meaning clients terminate listings 25% of the time). Our local discounters have a 49% termination rate, meaning 1/2 of their clients terminate the listing. If agents were showing their homes, I would expect them to have a similar termination rate to the average brokerage.
Good luck to you!
Not to go off track but to say most good agents use buyer agency agreements is way off base.
In some markets they are not used much at all.
On to the OP's question.
It is all going to depend on what else is available in the area and what those listings are offering. Around here we have some cookie cutter subdivisions that the homes are almost identical and prices are very close to each other.
If one listing is offering 2% and one is offering 3% then you know which is getting shown more.
It will not be as prevalent in an area where the homes are not as similar but will still have an effect.
mindy i think if i remember seeing correctly you're in mass. 2% on the buy side in some towns is normal. You'll see 2.5% a lot more but like i said in certain towns 2% is common.
Do you know how much in Greenfeild, or how to find out?
I hope you didn't find my response nasty. That was not my intent.
Just to be clear, my realtor would be more than happy to show me your house...even if you offered 0%.
I have a signed agreement (contract) with him so he knows he will get paid from me if not from you.
It would be me the buyer, who would not want to look at your house. Unless your market is incredibly unique I would most likely be able to find a similar house where I would not have to pay the commission you are trying to save.
So it isn't the realtor's fault. It isn't his call to decide what house I go see. It would be my call as the buyer.
That might be the case with you, but my realtor got a phone call asking how much he would get otherwise he wouldn't even pass the information to his client. That is almost what Bill Gates got a huge fine for from the EU for keeping prices high in an unfair way.
I agree with bentlebee and that is why I say that most great buyer agents will have a buyer agency agreement. If you don't have some sort of agreement with your buyer client about lower commission homes, then I think it is unethical.
Mike, I know many agents don't use buyer agency agreements, and I really think it violates our fiduciary duties to our clients to purposely exclude listings with lower commissions without informing our client that we are engaging in that business practice. Our clients need to be given the choice. If you let your clients know that you won't show them homes that offer less than x% and they say okay, then you are fine. I think many agents aren't having this conversation with their buyer clients and I think that is a problem. There are some insanely bad offerings on the MLS, that I could not make any money off of (yes, I am a for profit business person). I have a certain fee, and my clients hire me to see houses. It's not okay to exclude a home without giving them the choice to make up the difference or to have them excluded as part of the buyer's choice.
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That is almost what Bill Gates got a huge fine for from the EU for keeping prices high in an unfair way.
