Profile picture for user744151

Agent Sales Commission Issue

When initiating a home sale and under very routine circumstances (not foreclosure or short sale and all other factors very straight forward), if the agent makes his very first home visit and refuses to answer the question of his Commission until he returns with his market analysis, is this a red flag?  Also, for Central Florida what could be considered the expected commission by the listing agent?
  • November 10 2013 - Ocala
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (9)

Best Answer

I find all this discussion entertaining. It doesn't matter what commission the Agents want. Tell them what you'll pay. It's your house and your money.
  • November 12 2013
  • 2Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

A seller should listen to an agents marketing plan first.  What work is that agent going to do to get your home sold?  How are they going to prove to you that the work is being done to earn their commission?  Your not going to be happy if your home sits on the market with no showings, but I guess you will be happy the commission your  paying the lazy agent is lower.  How do you know what a fair commission is to pay until you understand what work is going to go into selling your home?
  • February 28 2014
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for hpvanc
Personally I think it is a red flag too. I have a general idea of the reasons for their evasiveness, it involves a political compromise with the Department of Justice Antitrust Division, but don't accept the sales pitch you are being given.

My recommendation is this, communication is a two way street, politely tell the agents you are uncomfortable with this method of selling their services and hang up.  Keep calling agents until you find a few that are willing to provide you with an upfront list of services they provide and what the rates are for those services or packages of services.

Keeping services and rates opaque does nothing good for the general reputation of the industry or the reputation of the industry. Comparing value is a core concept and absolute requirement for capitalism.

Since Dunes, another regular poster on this site is on vacation, I will provide you with some links he usually provides:

Consumers Can Save Thousands of Dollars in Commissions

Competition in the Real Estate Brokerage Industry


Real Estate Laws in Your State


Home Prices and Commissions Over Time

and one from me, so you can check what the actual laws say in your state not just how real estate agents interpret them for the purposes of a sales pitch:

FL Division of Real Estate Statutes and Rules

Good luck!
  • November 12 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for LizHarrisMBA
I remember the days before I became a real estate agent. Especially when I had to put my very first home on the market for sale.  I recall not even asking about commissions until the very end.  It was the person who had the personality and the marketing expertise to get the highest and best value for my home that I selected.  I could tell he had sold many homes in the area and he was confident in the list price range he suggested. Fortunately, I picked the right person for the job!  So, I would say it is important to listen to the entire presentation and ask lots of questions... I do not think that listening to the presentation before you talk commission is a red flag at all!
  • November 12 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Very good answers below!  I am very proud that not one of my piers tried to comment on the 'expected commission'  - except for the last that states "Commission Negotiable"....which sums it up and is right on the money!

Well done folks!
  • November 12 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Not a red flag! A professional agent will get his full presentation together and show you the value they are worth. Many agents spend lots of money are marketing a property. It is only fair to let him give you his marketing proposal and what he will do to get your home sold. Some will just put it on the MLS while others will do mailers, hold open houses, virtual tours, door knock the area, etc.

If an agent will not tell you his commission before his presentation it is because he is interviewing for the job of selling your home and needs to get his resume together. Also, if an agent is willing to cut his commission without showing his value, how will he negotiate in you behalf? If he is willing to fight for his commission then he will fight to get you top dollar!  Remember the old saying. "you get what you pay for?"
  • November 11 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

It's a . . . I don't know what "a red flag" means . . . it's a sign that you may be intently interested in the commission and the agent may be equally interested in demonstrating value for their commission.

To make a short story long, you do not have to leave questions unanswered; you can press until your satisfied.Communication is the most important part of the relationship between client and agent, and if you can't communicate well, it's a "red flag" that there may be problems down the road.

All the best,
  • November 11 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

No, not a red flag at all. They don't want to be blown out of the water until they come back with a market value and present the whole thing to you at once. Commission is very much negotiable and so is the asking price. Often I will be more agressive on commission if the seller is more reasonable on the asking price. If they insist on an asking price that is way too high I want more commission to be able to offer a better split to other agents and to compensate me for the extra time and trouble the over price is going to cause me. 
  • November 10 2013
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for CallTheSisters
Not a red flag.  I would not state my commission until I was sitting down with you presenting the CMA.  You might have been shopping for the cheapest person without giving them an opportunity to present their bundle of services to you and therefore decide if their commission was in line.

Any agent who works in an particular area should already know the approximate value of your home from experience.  What they do not have are the comps to sit down and show you how they arrived at it.  I can gauge the value when I walk in the house.  The agent was not waiting to see what your home was worth - he was waiting to be able to make a full presentation to you.

Commission is negotiable between the listing agent and the seller. 
  • November 10 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.