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My sister, who lives near me, recently found a new home. It's in a retirement community and a new build. When she went to contract (this week) they asked her if she had a realtor. She does, to sell her current home. It's an acquaintance of both of us that is very professional. She's the top lister (or maybe it's seller) in her office. She is well known in the community and very well liked. The builder's agent who was writing the contract told her to put this woman down as her realtor as she'll get a 3% commission. The agent said perhaps she'll work with you and sell your house for less of a commission since she didn't have to do anything on the buying end.
When she contacted the agent last night the woman was extremely touched and thankful. She offered to speak to her broker about reducing the fee to 5%, but told my sister it's rare that he does it but being that she's one of his top producers he'll probably agree, especially when she explains how my sister put her down as the buyer's agent when she certainly didn't do anything and didn't have to do this.
I didn't say anything, but she is going to get a VERY significant check for doing almost nothing and I kind of thought she'd give her some $. I am not in real estate and know nothing about how agents work, other than it seems to be an extremely difficult field. When you sell or list it's great, but you can go a long time without anything. I'm only asking what you, seasoned agents, would do in this situation or suggest that she does/says.
It’s not technically the agent’s decision. It is up to the broker to decide if s/he wants to change the existing listing contract that already spelled out the commission percentage or fee. In the real world, I doubt there would be any hesitation to reduce the fee, though. It was extremely nice of the builder’s rep to do that, by the way.
If the broker says, "No," your sister should ask the agent to rebate a significant portion of the 3% on the new construction home.
The agent has "found money" and is very fortunate that the builder's rep made this offer. More and more, here, the builder wants the agent with the buyer at first visit to the sales center.
I honestly was shocked to say the least. I just called her and she said the realtor is going there later today to meet with the agent at the new build and to see the home. She didn't need my sister to go with her. She's going to my sister's home later this week (she's been there before) to give her comps and go over selling process. I think my sister (and I would be too) is too timid to ask her for money, but it really is a very significant amount.
I honestly was shocked to say the least. I just called her and she said the realtor is going there later today to meet with the agent at the new build and to see the home. She didn't need my sister to go with her. She's going to my sister's home later this week (she's been there before) to give her comps and go over selling process. I think my sister (and I would be too) is too timid to ask her for money, but it really is a very significant amount.
There's another agent out there for her.
"Top Seller" is hardly compelling.
I see both sides. The only thing I'll add to the thread that Mike hasn't already said is that locating the home is the easy, but time consuming part. It's also one of the areas where an agent provides little value. The contract to close phase is much more important.
It would be nice if the agent reduces the commission a little, make sure she takes the cut herself and not on the co-broke. However, if she won't, I wouldn't get too hung up on it if your sister isn't.
I bought new construction 5 years ago. Deciding to buy the house was a drop in the bucket compared to all of the issues that arose during the construction process through to closing that my RE agent was invaluable in helping with. Even if there is no discount in the commission rate (and hopefully there will be or a rebate or something!) there is still going to be a lot of service of value in the process where the agent will earn that commission.
I bought new construction 5 years ago. Deciding to buy the house was a drop in the bucket compared to all of the issues that arose during the construction process through to closing that my RE agent was invaluable in helping with. Even if there is no discount in the commission rate (and hopefully there will be or a rebate or something!) there is still going to be a lot of service of value in the process where the agent will earn that commission.
This is true. It is too soon to say there will be no work involved in working through this transaction. New builds can be very complicated and you may find it's a good thing to have this agent at your service.
You have all made a VERY valid and compelling statement. That is why I asked on this board. Now I understand more. Yes, she could prove invaluable during the building and closing end. We both truly like and respect her. She will do a very professional job. I only hear wonderful and positive things about her. Thank you again for all that responded
I spend more time for the buyers on new builds than resales. Help choosing finishes, colors, going out to site often to check on house (found one that builder was using broken 2x4's in headers above door, various other issues). Another home, they were going to ibstall the wrong granite.
Plus, often need to push builder to meet deadlines, do amendments for extending closings, coordinate appraisals etc.
New builds are much more time consuming than resales.
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