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Old 03-01-2010, 02:16 PM
 
424 posts, read 2,248,586 times
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Is this how this works? In our area all real estate agents request a 6% commission, then they split that 50/50 with the buyers agent. If they bring the buyer too, they'd presumably get the whole 6%. But wouldn't you think usually the buyer is represeted by someone else and they get 3%? If we wanted to offer our agent 4% if he finds the buyer himself and there isn't another agent involved, that would be a better deal for him than getting 3%? But an exclusive listing would mean we wouldn't be on the MLS?

I'm not looking to sell anytime soon, but in 3-5 years. I'm having a very hard time calculating how I can break even on this property if we have to pay 6% when we sell. That's 10k, and I don't expect this property to appreciate that much so soon. We hope to put about 10k into it in improvements, but if we get all that back out, it seems to just go to the realtor then and we lose money. Is that really how real estate works?

I don't really want to do FSBO because they don't seem to do that well here, I don't know what I'm doing, and we really liked our realtor who helped us buy this place so we'd be happy to give him some business again down the road. But..... I'm a tightwad

Any ideas or insights? If you want, I can give you some background #s
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Old 03-01-2010, 02:21 PM
 
Location: Central Texas
20,887 posts, read 41,647,353 times
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I'm not quite sure how an exclusive listing would mean that you wouldn't be on the MLS, but our exclusive listings here are along the lines of "exclusive right to sell" which means you'd only be listing it with that agent but another agent might bring the buyer (and, thus, do all the work on the buyer's side of the deal, much of which your agent would be having to do if there's no buyer's agent involved - you do realize that the agents do more than bring the buyer and seller together, right, that that's just the starting place for the work agents do?).

That being said, you can ask for a discount, but don't count on getting it. And if you do, ask for it up front, not after any of the work has already been done, because, after all, you wouldn't want to do work for your boss and then have him tell you that he'd decided, because he's a "tightwad" and wants to keep money in his pocket, that he wasn't going to pay you what he'd agreed to when you agreed to do the work for him because the easiest way to get that money in his pocket was to take it out of yours.
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Old 03-01-2010, 02:25 PM
 
Location: Tempe, Arizona
4,511 posts, read 12,886,628 times
Reputation: 2199
Quote:
Originally Posted by campmom123 View Post
Is this how this works? In our area all real estate agents request a 6% commission, then they split that 50/50 with the buyers agent. If they bring the buyer too, they'd presumably get the whole 6%. But wouldn't you think usually the buyer is represeted by someone else and they get 3%? If we wanted to offer our agent 4% if he finds the buyer himself and there isn't another agent involved, that would be a better deal for him than getting 3%? But an exclusive listing would mean we wouldn't be on the MLS? ...
You can negotiate with your listing agent for a variable commission if they bring the buyer (for example, 4% instead of 6%). This would be specified in the listing contract. An exclusive listing would be in the MLS (we call it "Exclusive Right to Sell" or ER listing in Arizona.
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Old 03-01-2010, 02:25 PM
 
Location: DFW - Coppell / Las Colinas
38,922 posts, read 43,775,553 times
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You can negotiate any deal with an agent and I suggest you talk to him about this. But consider this and I'm not saying they would or would not do....

If he had your house listed and was confident it would sell, he will then will collect his 3% or Brokers share when it sales. If he has a buyer he can take that buyer to any home in his MLS and collect 3% when he helps him buy a home. What your doing by not offering your agent the Buyer Agent Commission is give him an incentive to not show your house. He will earn more if his buyer selects another home.

I'm not saying your agent would do this but just pointing out your are giving him a disincentive to bring you one of his buyers to your home. Many agents will cut a deal if they bring the buyer to the transaction, many would not.

In most major cities the odds of your listing agent bringing the buyer is slim. The odds are another agent will represent the buyer.
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Old 03-01-2010, 02:34 PM
 
424 posts, read 2,248,586 times
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Good point, Rakin, thanks for making me think. and thanks for the clarification of the process, rjrcm. TexasHorseLady, of course I would do this upfront. I'm cheap, but not a cheater.

And I understand realtors do a lot of work and earn their pay. But I'm doing a lot of work to try to do well with my meager $$ and I don't want to part with it easily

The reason I asked about the MLS was that when we were shopping for this house sometimes I'd see a place advertised but it wouldn't be on our agents MLS and he said maybe it was an exclusive listing. Usually it was just an out of date webpage (some real estate offices here don't keep up with their websites much).

Most likely we'll just do this all traditional and normal when we get to this point, but Im having a dark moment right now of buyers remorse as all the cute spring listings start to pop up and I think "how am I ever going to make this house work for us?"
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Old 03-01-2010, 03:36 PM
 
Location: Tempe, Arizona
4,511 posts, read 12,886,628 times
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Quote:
Originally Posted by campmom123 View Post
....The reason I asked about the MLS was that when we were shopping for this house sometimes I'd see a place advertised but it wouldn't be on our agents MLS and he said maybe it was an exclusive listing. ...
Yes, agents can take listings that don't go in the MLS. However, listing with an agent without putting in the MLS is a severe limitation on advertising your home. It may work if your agent has a buyer in mind.
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Old 03-01-2010, 04:01 PM
 
Location: Salem, OR
15,069 posts, read 37,274,881 times
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In some areas like NYC, many listings are exclusive listings, meaning that there is no offer of compensation to other agents. You have to strictly work with that company to buy that house. I am aware that in NYC itself this is fairly common, but in most parts of the country it is not. We agents often refer to these listings as pocket listings in other parts of the country.
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