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We have a house +acreage and when we chose our realtor, we all agreed that the commission would be 4%. We have a potential buyer, and their agent is stating that she is a "higher end" agent and accepts no less than 3%. I feel like if you're showing our property to your buyers and the notes states 2%/2%, that is what you are going into it knowing. If she's wanting more commission, than should we include that 1% in our counter? I feel like if the buyers want her as an agent, then they need to pay her extra 1% in the sale of the house/property.
Update (and, ahem, a truthful one; since I was merely seeking info in the first place there was not need for me not to be forthright about my situation)
We are in escrow with offer #2. The day we initialed off on #2's acceptance, we actually got a call from the son-in-law of #1's (who my husband knows). Well, he says, #1 really really wants the house...and is it too late. They had no idea about their agent's commission request, and also...get this...that $10k was requested for us to pay towards closing. I call BS...they signed the offer; who would sign an offer without reading that offer?!?
Well, they had 2 days before we initialed that they could have come back with another offer. We told them with #2 it is contingent, so they could put in an offer and see...either the contingency gets removed and we proceed with #2, or he can't remove it and we go back to #1. Think is they didn't want to use their agent...and want to use ours. Reason they didn't come back with another offer. Turns out, #2's agent was supposed to remove the contingency on the current offer (again, don't buyers READ what their offer is before signing??). So the contingency was removed even before we got another offer from #1.
Phew...
So, in escrow. Moving forward. #1 has still let it be known if anything happens to let them know right away. I also heard they fired their agent, and are not going to use her to sell their current home. Whoops.
...now the real fun of packing-moving-relocating has begun
Update (and, ahem, a truthful one; since I was merely seeking info in the first place there was not need for me not to be forthright about my situation)
We are in escrow with offer #2. The day we initialed off on #2's acceptance, we actually got a call from the son-in-law of #1's (who my husband knows). Well, he says, #1 really really wants the house...and is it too late. They had no idea about their agent's commission request, and also...get this...that $10k was requested for us to pay towards closing. I call BS...they signed the offer; who would sign an offer without reading that offer?!?
Well, they had 2 days before we initialed that they could have come back with another offer. We told them with #2 it is contingent, so they could put in an offer and see...either the contingency gets removed and we proceed with #2, or he can't remove it and we go back to #1. Think is they didn't want to use their agent...and want to use ours. Reason they didn't come back with another offer. Turns out, #2's agent was supposed to remove the contingency on the current offer (again, don't buyers READ what their offer is before signing??). So the contingency was removed even before we got another offer from #1.
Phew...
So, in escrow. Moving forward. #1 has still let it be known if anything happens to let them know right away. I also heard they fired their agent, and are not going to use her to sell their current home. Whoops.
...now the real fun of packing-moving-relocating has begun
Thanks to all for the insight!
Ugly agent. Just ugly.
And, it is good to hear she lost TWO deals, not just one.
Truthfully, a great many people do not read thoroughly. (That includes agents, too.) It is often a sea of documents, and a "Sign here. Sign here. Oh, initial back here..." sort of thing.
Good luck getting to a successful and drama-free closing!
Ugly agent. Just ugly.
And, it is good to hear she lost TWO deals, not just one.
Truthfully, a great many people do not read thoroughly. (That includes agents, too.) It is often a sea of documents, and a "Sign here. Sign here. Oh, initial back here..." sort of thing.
Good luck getting to a successful and drama-free closing!
Agreed. Hope everything goes smoothly for you and I hope the #1 takes the agent to the REC.
Ugly agent. Just ugly.
And, it is good to hear she lost TWO deals, not just one.
Truthfully, a great many people do not read thoroughly. (That includes agents, too.) It is often a sea of documents, and a "Sign here. Sign here. Oh, initial back here..." sort of thing.
Good luck getting to a successful and drama-free closing!
When I signed any paper I read it all. Even my agent and my wife was getting miffed.
When I signed my closing loan docs the loan girl came to my house. I read through every page. I questioned everything . Way I see it when everyone is gone the agents the sellers the bank I’m stuck with whatever I agree to and I’ll have a hell of a time getting something fixed.
Truthfully blind signing anything is just dumb. I don’t trust anyone when it comes to anything like purchases of houses cars loans etc.
We have a house +acreage and when we chose our realtor, we all agreed that the commission would be 4%. We have a potential buyer, and their agent is stating that she is a "higher end" agent and accepts no less than 3%. I feel like if you're showing our property to your buyers and the notes states 2%/2%, that is what you are going into it knowing. If she's wanting more commission, than should we include that 1% in our counter? I feel like if the buyers want her as an agent, then they need to pay her extra 1% in the sale of the house/property.
Thoughts?
that agent stating herself as a "higher end" agent made nearly made me throw up in my mouth. Glad she lost two deals out of her boneheaded self assessment.
Bringing this thread back from the dead for a real life application of this very forum's primary topic!
I seem to be on the opposite side of the majority in that I was seriously considering offering 4% or even 5% on the sale of a waterfront property I own (I am also a real estate agent and attorney if that matters to your responses).
The property is a bit over an hour out of Seattle in a super hot vacation area and is the largest waterfront property for sale in the area (out of 3 only) and there won't be many coming to market for years.
I need more agents to guide their clients to my property and sell the dream. There are A LOT of buyers out there that would and have the means to easily buy and sit on the 5 acre property even if they don't want to develop it, but they aren't thinking vacation (or extra vacation) spots and searching "east of the mountains" we call it locally. Everyone searches 3 or 4 specific resorts and agents push these locations (Suncadia/Trailside/TumbleCreek they are called) and none are riverfront.
That is the background and my thoughts were to entice buyers' agents to actually consider it for their buyers and as well as motivating them to market it and drive the over hour drive to show it.
I don't mind paying extra and I don't think it would change if I wasn't a real estate agent.
I read through a bunch of posts and I see where most commenters are coming from, but lowering the price from $500k to $495k (or $490k at a 5% buyer agent payout) vs paying agents that extra $5k or $10k to make the effort to sell the property and do their job better seems like a no brainer in favor of paying the agent and not lowering the price.
Agents can't show every property in many cases (including this one) b/c maybe they need to create the need a bit with their buyer network. It's still performing in a fiduciary role to bring investments (financially and/or emotionally) to their clients and it shouldn't matter how they are paid as long as they are not the ones dictating the payouts after the fact.
Otherwise, why not just take .5% commission rate since it is negotiable. There is no official number as we all know, so each deal should stand on its own in how payouts are crafted (on the seller side I mean). I think maybe buyer agent should disclose to buyer that this particular property owner is wanting everyone to be very happy with the transaction so they are "spiffing/bonusing/etc" extra to them as buyer agent in addition to the great deal the buyer can take advantage of if so inclined.
Fiduciary doesn't mean no selling. If you aren't lying to your client and you are honest and open about your professional opinion then it shouldn't matter what you are being paid in my opinion.
Wow...rambled a lot through that.
Question: In light of the above, does it change anyone's opinion that in some cases (like this one?) 4%+ to buyer agents may be a smart marketing plan to get more eyeballs to the vacation type property?
p.s. Any comments in no way should be taken as price fixing as this is a unique situation so any comments will not apply to other future property representations or negotiations. All comments are for feedback specific to this seller only.
If she has a buyer agency contract with her buyer, then she might look to them to increase her take home pay....it is her fault for not looking at the "cc" on the MLS sheet before she showed the home and asked to be compensated at a higher rate before she brought the buyer. However, all this should have been disclosed to her buyer and I am sure if this had been done, the buyer might be seeking different representation. Her agreement is with the buyer....the seller is agreeing to compensate a buyer's agent 2% and their listing agent at 2%......seems this glutton wants more of the pie than is fair.
Bringing this thread back from the dead for a real life application of this very forum's primary topic!
I seem to be on the opposite side of the majority in that I was seriously considering offering 4% or even 5% on the sale of a waterfront property I own (I am also a real estate agent and attorney if that matters to your responses).
The property is a bit over an hour out of Seattle in a super hot vacation area and is the largest waterfront property for sale in the area (out of 3 only) and there won't be many coming to market for years.
I need more agents to guide their clients to my property and sell the dream. There are A LOT of buyers out there that would and have the means to easily buy and sit on the 5 acre property even if they don't want to develop it, but they aren't thinking vacation (or extra vacation) spots and searching "east of the mountains" we call it locally. Everyone searches 3 or 4 specific resorts and agents push these locations (Suncadia/Trailside/TumbleCreek they are called) and none are riverfront.
That is the background and my thoughts were to entice buyers' agents to actually consider it for their buyers and as well as motivating them to market it and drive the over hour drive to show it.
I don't mind paying extra and I don't think it would change if I wasn't a real estate agent.
I read through a bunch of posts and I see where most commenters are coming from, but lowering the price from $500k to $495k (or $490k at a 5% buyer agent payout) vs paying agents that extra $5k or $10k to make the effort to sell the property and do their job better seems like a no brainer in favor of paying the agent and not lowering the price.
Agents can't show every property in many cases (including this one) b/c maybe they need to create the need a bit with their buyer network. It's still performing in a fiduciary role to bring investments (financially and/or emotionally) to their clients and it shouldn't matter how they are paid as long as they are not the ones dictating the payouts after the fact.
Otherwise, why not just take .5% commission rate since it is negotiable. There is no official number as we all know, so each deal should stand on its own in how payouts are crafted (on the seller side I mean). I think maybe buyer agent should disclose to buyer that this particular property owner is wanting everyone to be very happy with the transaction so they are "spiffing/bonusing/etc" extra to them as buyer agent in addition to the great deal the buyer can take advantage of if so inclined.
Fiduciary doesn't mean no selling. If you aren't lying to your client and you are honest and open about your professional opinion then it shouldn't matter what you are being paid in my opinion.
Wow...rambled a lot through that.
Question: In light of the above, does it change anyone's opinion that in some cases (like this one?) 4%+ to buyer agents may be a smart marketing plan to get more eyeballs to the vacation type property?
p.s. Any comments in no way should be taken as price fixing as this is a unique situation so any comments will not apply to other future property representations or negotiations. All comments are for feedback specific to this seller only.
As an agent, I only look at the commission to be paid when i am writing up the offer for my client. I've sold homes with 2 percent, and homes with 3 percent. I won't steer my clients to homes based on commissions. That seems slimy...and not in my client's best interest.
For a unique property, figure out what niche it fills and market to them in appropriate venues. (Ie...for undeveloped land, advertise in builder magazines. For a potential horse property, advetise in equestrian magazines). Spend your money where the type of buyer that will want your property will be likely to see it.
…..I read through a bunch of posts and I see where most commenters are coming from, but lowering the price from $500k to $495k (or $490k at a 5% buyer agent payout) vs paying agents that extra $5k or $10k to make the effort to sell the property and do their job better seems like a no brainer in favor of paying the agent and not lowering the price.
...
Buyer's reponse: If my agent needed more money to 'make the effort' and 'do their job better', they'd be needing a new client.
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