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How often does that happen, Bo?
I have not had sellers request a reduction in cobroke. Mostly, they want to be sure I offer the most common cobroke on the market.
Gee, but I NEVER hesitate or mind discussing the clients' money. I'm pretty open about compensation.
I can recall the shock and horror when rules passed requiring agents to disclose bonuses and other inducements to their clients. It was educational and I like the transparency that horrified so many licensees.
I have seen MANY going 2% or even 1%, heck I know I've seen a $1,500 on a $500K+ house.
I was thrilled when they required disclosure of bonuses, etal. I recall the heydays of the mid-2000's when you sold new construction and they always wanted to give agents a $2K bonus of some type. Every single time, I told them to give it to the Buyer as closing costs.
The only problem discussing their money now is the "dual agency compensation" field. I have to explain this is the TOTAL compensation my big firm would earn - from the Seller - and doesn't affect their financials.
BTW, I hope and assume you know that when I speak of "discount" or "low-service" agencies that I'm not casting a furrowed brow your way. I know the quality of your work, and of your representation as well.
If that happens then there's nothing they can do about it. However, I've witnessed agents try to talk their clients out of seeing a house because it was listed with a "discount broker." Obviously, they don't say "it's listed with Redfin so let's not see it." They say something like "oh that's a bad neighborhood" or "I saw that house it's in really rough shape" or "I'm familiar with that house the basement takes on water frequently."
You must be a discount agent? No, agents don’t make false claims about listings listed by discount brokers. When dealing with Redfin, we are passed around to multiple people because a client doesn’t have one agent thereby making the transactions messy because you are paying for discount customer service. Discount brokers do try to discount the buyer’s agent’s commission and then we’ll have to do more work because a discount brokerage is a McDonalds which is not in the business of providing a Steakhouse experience.
Redfin is a very powerful platform, I use it for home shopping exclusively. However, I've never tried selling a property through them nor know anyone who has, but I'd imagine they'd do a pretty good job pushing their own listings, especially if it's a market where Redfin is well known.
Working for a traditional brokerage who has a very respected name, our marketing is expensive! I am required by my brokerage to meet certain standards which is why our listings, your property, are more appealing. All Sotheby’s listings must have professional pictures with specific dimensions, pixilation and be high resolution for both mls and internal use. Our pictures are sent to corporate for approval before they are used. I’ve seen Redfin brokerages have upside down iPhone pictures before. This is very expensive and because traditional agents cover these fees, I cannot afford to discount my commission. We are also expected to advertise in publications, have high resolution print adds and because our clientele is most frequently luxury estates, we have to advertise in prestigious magazines which can run a couple thousand a month, which I have to pay upfront on my dime before my commission is made. All of our listings go to international newspapers, also very expensive. You are paying for very expensive exposure and discount brokerages cannot afford these luxuries. Listings do not sell because of lack of exposure and price and a discount brokerage could not possibly give you the exposure we can. That is why you are paying more for our service vs a discount broker because traditional agents, if they’re doing their job, spend way more on marketing. Yes, you do get what you pay for.
You must be a discount agent? No, agents don’t make false claims about listings listed by discount brokers. When dealing with Redfin, we are passed around to multiple people because a client doesn’t have one agent thereby making the transactions messy because you are paying for discount customer service. Discount brokers do try to discount the buyer’s agent’s commission and then we’ll have to do more work because a discount brokerage is a McDonalds which is not in the business of providing a Steakhouse experience.
Quote:
Originally Posted by Linlev
Working for a traditional brokerage who has a very respected name, our marketing is expensive! I am required by my brokerage to meet certain standards which is why our listings, your property, are more appealing. All Sotheby’s listings must have professional pictures with specific dimensions, pixilation and be high resolution for both mls and internal use. Our pictures are sent to corporate for approval before they are used. I’ve seen Redfin brokerages have upside down iPhone pictures before. This is very expensive and because traditional agents cover these fees, I cannot afford to discount my commission. We are also expected to advertise in publications, have high resolution print adds and because our clientele is most frequently luxury estates, we have to advertise in prestigious magazines which can run a couple thousand a month, which I have to pay upfront on my dime before my commission is made. All of our listings go to international newspapers, also very expensive. You are paying for very expensive exposure and discount brokerages cannot afford these luxuries. Listings do not sell because of lack of exposure and price and a discount brokerage could not possibly give you the exposure we can. That is why you are paying more for our service vs a discount broker because traditional agents, if they’re doing their job, spend way more on marketing. Yes, you do get what you pay for.
These posts are laughably ridiculous.
No trained, competent, professional, ethical agent would ever refer to another licensee as a "discount broker."
No trained, competent, professional, ethical agent would ever say, "You get what you pay for," because it is too often completely false.
These posts are laughably ridiculous.
No trained, competent, professional, ethical agent would ever refer to another licensee as a "discount broker."
No trained, competent, professional, ethical agent would ever say, "You get what you pay for," because it is too often completely false.
“Discount broker,” is a widely used term and discount brokerages are nothing new and many have tried to come in and out of the market for years and fail. All tradironal agents use that term. It is laughable that you would argue that being that it is so widely used and yes, a regular objection by all agents is that you do get what you pay for with discount brokerages because it’s true. Sorry you feel so offended but it is what it is.
“Discount broker,” is a widely used term and discount brokerages are nothing new and many have tried to come in and out of the market for years and fail. All tradironal agents use that term. It is laughable that you would argue that being that it is so widely used and yes, a regular objection by all agents is that you do get what you pay for with discount brokerages because it’s true. Sorry you feel so offended but it is what it is.
So you are saying, people who use those fresh out of school-can't fill out a sales agreement-no idea on values agent at the big, expensive 50% brokers are providing a better service? Because realistically a typical Coldwell/Northwood/Berkshire/Howard Hanna office is well over half agents on its roster who don't have a deal this year.
Calling a broker a “discount broker,” is not referencing a licensee, it’s labeling the business model of the brokerage as a hole. I never said, “Sally is a bad agent.” It is unethical and you can loose your license by talking negatively about a specific agent, not an entire brokerage and it’s discount platform.
“Discount broker,” is a widely used term and discount brokerages are nothing new and many have tried to come in and out of the market for years and fail. All tradironal agents use that term. It is laughable that you would argue that being that it is so widely used and yes, a regular objection by all agents is that you do get what you pay for with discount brokerages because it’s true. Sorry you feel so offended but it is what it is.
I am not offended, not by a long shot.
I do weary of knuckle-dragger price-fixers and their entitlement mentality that casts shade on the whole brokerage community.
So, if I charge 4.6% to list a house in my market, with 2.4% to the buyers agent, and take 2.2%, am I a "discount broker?"
I am not offended, not by a long shot.
I do weary of knuckle-dragger price-fixers and their entitlement mentality that casts shade on the whole brokerage community.
So, if I charge 4.6% to list a house in my market, with 2.4% to the buyers agent, and take 2.2%, am I a "discount broker?"
Not if you do the job of a traditional broker. I had a listing a Redfin wantesnto show so called to make an appointment. When I asked if they had actually talked to these people and if they were prequalified, the person on the phone could not answer any questions because they were not an agent just an answering service; issue number one. They had the “showing agent,” call me. I received a call and again, asked if these buyers were serious and prequalified before having my sellers leave their nice home with valuables for unqualified “lookie Lou’s,” who have no intention of purchasing a home. I was protecting my client because nobody wants to be pushed out of their home for people that aren’t actually in the market but just playing around on a website. How would you feel if your agent was just allowing unserious people playing on a website walk through your your or one of your most valuable asset(s) all the time?
Per the showing agent, he was just “opening the door” and if they liked the property somebody else would take over followed by another department and so on.
When traditional agents are making appointments for our clients, we know how the buyer was procured, we know who they are qualified with, we know their kids names.... because we are in the business of building relationships, not passing clients and agents around to different departments. We work on commission, not a salary like Redfin agents, so it is in our best interest to run a well oiled business. We communicate with each other because we are involved in community networks, we pitch to each other at functions, go to broker opens.... I have never had a Redfin agent go to any of these to expose a property or to inquire about other properties that match one for their buyers that may be off market.
It’s not what they are making, it’s the quality of service they provide.
Not if you do the job of a traditional broker. I had a listing a Redfin wantesnto show so called to make an appointment. When I asked if they had actually talked to these people and if they were prequalified, the person on the phone could not answer any questions because they were not an agent just an answering service; issue number one. They had the “showing agent,” call me. I received a call and again, asked if these buyers were serious and prequalified before having my sellers leave their nice home with valuables for unqualified “lookie Lou’s,” who have no intention of purchasing a home. I was protecting my client because nobody wants to be pushed out of their home for people that aren’t actually in the market but just playing around on a website. How would you feel if your agent was just allowing unserious people playing on a website walk through your your or one of your most valuable asset(s) all the time?
Per the showing agent, he was just “opening the door” and if they liked the property somebody else would take over followed by another department and so on.
When traditional agents are making appointments for our clients, we know how the buyer was procured, we know who they are qualified with, we know their kids names.... because we are in the business of building relationships, not passing clients and agents around to different departments. We work on commission, not a salary like Redfin agents, so it is in our best interest to run a well oiled business. We communicate with each other because we are involved in community networks, we pitch to each other at functions, go to broker opens.... I have never had a Redfin agent go to any of these to expose a property or to inquire about other properties that match one for their buyers that may be off market.
It’s not what they are making, it’s the quality of service they provide.
"Discount" usually refers to fees, implies a standard commission, not a service model. "Discount" tends to be a price-fixing term.
So, I am glad to see you focused on service and competence, rather than fees.
The two are completely separate issues and should not be commingled in conversation.
I can work for free and still be in a fiduciary role with an expected level of service to my client, and exposure to reprimand and discipline if I fail to deliver.
I see plenty of old school knuckle-draggers tossing out "discount" because they feel threatened by any agent who competes on fee, regardless of quality of service.
Many agents working on tighter margins work circles around a lot of the throwback, circle-the-wagons old dogs.
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Discount agent?
