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Also, the listing agent pays the buyer's agent's commission. So what you're asking for is a rebate (the "kickback" referred to above) of the commission paid to your agent by the listing agent.
I think some are assuming some thing here, incorrectly. The way I read it, she's in NY, (on Long Island if I interpret her name correctly,) and is being referred to a listing agent for the sale of her house.
Last edited by Bill Keegan; 04-02-2009 at 11:08 AM..
Reason: typo
I think some are assuming some thing here, incorrectly. The way I read it, she's in NY, (on Long Island if I interpert her name correctly,) and is being referred to a listing agent for the sale of her house.
Yes we are looking for a listing agent. We will also be buying a home on long island as well. So the listing agent could earn a commission on us as sellers of our current home and buyers of our next home.
Okay, in that case, your agent will be paying (usually, it varies) 50% of the commission that they get to the buyer's agent. They'll be paying 25% (it varies, could be as much as 35%) of their commission to your uncle. They'll be paying some percentage (up to 50%) of the original 50% of the commission to their broker (unless they're the broker). Out of what they get, the expenses of marketing your home (and the business expenses of being a realtor, which are not inconsiderable once you add them all up) would have to come.
So, of the original commission, the agent, if they pay a referral fee and DON'T reduce their commission, could be in the position of paying for the privilege of selling your home.
So, would you do that, in whatever line of work you're in? Would your husband?
Okay, in that case, your agent will be paying (usually, it varies) 50% of the commission that they get to the buyer's agent. They'll be paying 25% (it varies, could be as much as 35%) of their commission to your uncle. They'll be paying some percentage (up to 50%) of the original 50% of the commission to their broker (unless they're the broker). Out of what they get, the expenses of marketing your home (and the business expenses of being a realtor, which are not inconsiderable once you add them all up) would have to come.
So, of the original commission, the agent, if they pay a referral fee and DON'T reduce their commission, could be in the position of paying for the privilege of selling your home.
So, would you do that, in whatever line of work you're in? Would your husband?
I don't understand the hostility. I was just asking a question.
I am not the one who invented "referral fees". I didn't know how much of a referral fee was involved. If realtors don't make money with referral fees then why don't they end the practice?
If I didn't want to pay a realtor I would sell fsbo. I understand that they need to stay in business.
Not hostility, just trying to be clear about where the money goes so that the reason for the answer is clear.
And, actually, agents can make money with referral fees. They just can't discount their fee AND pay a referral fee and make money. One or the other will work.
Referrals, should be treated like any transaction, but in all honesty, some agents, will not reduce their fees, especially if they have to pay the referral fee. To be worried about that affecting the purchase, is wrong, as the Seller agent, will be the one making that decision. I seriously doubt, a small per centage, will make that much difference, but just my two cents worthl
Not hostility, just trying to be clear about where the money goes so that the reason for the answer is clear.
And, actually, agents can make money with referral fees. They just can't discount their fee AND pay a referral fee and make money. One or the other will work.
Ask yourself if you would be willing to give up 20% of your take home pay and then give another 25% to someone who just told you about the job in the first place. Most Realtor's aren't stupid enough to work for free.
This isn't a hostile response, I'm just trying to put it in perspective.
Also, when you ask someone to discount their service, that is exactly what they do - give you less of their services. You need to think about what you expect your Realtor to do for you.
I'm not sure why everyone is assuming that any of the agents would reduce the fee they are charging to begin with. You're on Long Island...it's not a 'happening' market right now. Rather being concerned with a half a percent or even a full percent, you would be best to worry about the quality of the agent.
Have you asked your uncle to just do a little research for you and refer you without charging a fee? I know I would do it for relative.
In addition to some of the other posts, most good won't negotiate their commission anyway. Inexperienced, desperate, or part time agents normally will. If you have someone who negotiates commission and gives away their money that fast, think how fast they'll give yours away in negotiation. If you get an agent that negotiates you probably shouldn't hire them anyway.
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