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Old 02-06-2018, 04:18 PM
 
Location: Columbia, SC
10,907 posts, read 21,868,550 times
Reputation: 10539

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Quote:
Originally Posted by kokonutty View Post
Does any agent believe the guy who saves me $20,000 or more should not get more compensation than the one who can't, or doesn't make the effort, in fact the successful negotiator will lose money himself?
Are you, the buyer, willing to turn negotiation over to me and accept the outcome?
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Old 02-06-2018, 08:13 PM
 
Location: Columbia SC
14,200 posts, read 14,577,722 times
Reputation: 22009
The bottom line is many believe the traditional real estate sales model is broken. Some of the "maybe better ideas" are:

1. Simple answer is same model but less a commission %.

2. Commission % based on sale price such as the higher the value of the home, the less the commission. Like 6% on a $100K home, 4% on a $500K home.

3. Commission based on actual sale price versus suggested list price. Such as an agent says/agrees to list at $100K, they get 6% commission. Home sells for $90K they get 6% less $100. Home sells for $110K, they get 6% plus $100.

Place the onus on the agent to be accurate/truthful (earn their money) versus pump sunshine up ones butt.
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Old 02-06-2018, 10:27 PM
 
11,025 posts, read 7,766,385 times
Reputation: 23700
Quote:
Originally Posted by Brandon Hoffman View Post
Yes, I read it. How is the "baseline" agreed upon? What happens if a baseline isn't agreed upon? Should the agent be "penalized" for multiple offers and hot markets where I lose ability to negotiate?
If the baseline is not agreed upon, there is no agreement.

D'oh.
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Old 02-06-2018, 10:29 PM
 
11,025 posts, read 7,766,385 times
Reputation: 23700
Quote:
Originally Posted by Brandon Hoffman View Post
No, because I don't control what a buyer will pay or a seller will accept. My job is to help a buyer buy the home they want. Sometimes that means paying asking price for the forever home.

Why do you feel such a large portion of the agent income should be something they have limited control over? You as the buyer are largely responsible for what sort of deal you get.
Fine. You're off the list.

I want an agent who has more confidence in his ability to negotiate on behalf of his client. Especially so since having an agent usually keeps the buyer from negotiating his own deal.
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Old 02-06-2018, 10:31 PM
 
11,025 posts, read 7,766,385 times
Reputation: 23700
Quote:
Originally Posted by Brandon Hoffman View Post
Are you, the buyer, willing to turn negotiation over to me and accept the outcome?
No.
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Old 02-07-2018, 09:36 AM
 
Location: Columbia, SC
10,907 posts, read 21,868,550 times
Reputation: 10539
Quote:
Originally Posted by kokonutty View Post
If the baseline is not agreed upon, there is no agreement.

D'oh.
So why would I commit time to working with buyers who aren't willing to commit back to me? How can a baseline be determined without even seeing the home in person?

Don't d'oh me when you can't even resolve simple questions about your stupid idea.
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Old 02-07-2018, 09:37 AM
 
Location: Columbia, SC
10,907 posts, read 21,868,550 times
Reputation: 10539
Quote:
Originally Posted by kokonutty View Post
Fine. You're off the list.

I want an agent who has more confidence in his ability to negotiate on behalf of his client. Especially so since having an agent usually keeps the buyer from negotiating his own deal.
Ha, any agent willing to "guarantee" such an outcome is either a liar, desperate for anything, or simply lacks knowledge and experience. Any of the 3 disqualify them as a "professional". You'd deserve what you get.
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Old 02-07-2018, 09:41 AM
 
Location: Columbia, SC
10,907 posts, read 21,868,550 times
Reputation: 10539
Quote:
Originally Posted by kokonutty View Post
No.
If you aren't willing to accept my outcome and give me full control why should I be responsible for what you agree to pay?
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Old 02-07-2018, 10:34 AM
 
Location: Rochester, WA
14,339 posts, read 11,837,307 times
Reputation: 38547
Quote:
Originally Posted by kokonutty View Post
As far as the proposal, it involved establishing an agreed upon base price (not the listing price) for each property based on things like listing price, days on market, comps and market conditions. Basic commission would be reduced by about one percent but savings below the base price would get the agent an additional 25-50% of the savings. Any money paid to the buyer's broker by the seller would be deducted from the total. And yes, it would require a knowledgeable buyer and research, knowledge and integrity on the part of both the buyer and his agent.

A quick example on a house listed at $525,000 perhaps. Comps are checked, market is analyzed, days on market getting past average, buyer and agent agree on $500k as "base price". Assuming the seller's contract specifies 3% to the buyer's agent/broker.

Conventional method: House sells at $490,000 - buyer's side gets 3% or $14,700.

Incentivized plan: House sells at $480,000 - buyer's side gets 2% (from seller) or $9,600 plus 33% of $20,000 savings for $6,667 - total $16,267. (Excess 1% from seller possibly split between buyer and his agent.)
I don't have all kinds of time this morning to read this whole thread, but I'm curious.... if this "base price" is something everyone agrees is a "reasonable" price for the house based on listing price, days on market, comps, and market conditions (which is a pretty significant price reduction already) how are we now getting the house for 10,000-20,000 less than that? Just our awesome skills? Didn't our awesome skills also help determine the base price?



You know... in the real world, there are two major players who decide the fair selling price, buyer and seller, and your arbitrary decision that the above house is $45,000 over priced, does not make the seller (or his equally savvy agent) agree to your price, no matter how slick and savvy your agent is. And there are many many times where we never arrive there... Sometimes people are never going to agree. And we have to pick up, move on, and try again another day, another place.

Negotiation is arriving at a price and terms that both sides can be happy with... not necessarily trying to suck the most money we can out of the other side. They too, have goals and dreams and brains and good representation.

We just spent the last two days negotiating a deal with multiple offers, where price was really only one factor important in the decision. It was a complex situation... They all are. Sometimes the best priced offer isn't the one most likely to close. Key is understanding all the issues important for our client and helping them choose the best offer to hopefully get there.

Last edited by Diana Holbrook; 02-07-2018 at 10:55 AM..
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Old 02-07-2018, 02:48 PM
 
11,025 posts, read 7,766,385 times
Reputation: 23700
Quote:
Originally Posted by Brandon Hoffman View Post
If you aren't willing to accept my outcome and give me full control why should I be responsible for what you agree to pay?
I said early on that this would not work for everyone. You've made it very clear that you wouldn't want to risk losing a little for the opportunity to work for a lot more; so be it. I would just hire someone who has the drive, confidence and ability to enter into such a "stupid" agreement.
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