Profile picture for nelson8989

Commissions

Just how flexible are realtor commissions?  Does the agency have any control over whether an agent of theirs can drop his commission or not?  When an agent approaches a FSBO with a prospective buyer for example, can the owner ask the realtor to reduce his commission to less then the standard 3%?
  • July 21 2012 - Lee
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Answers (7)

There is no 'standard' commission and even when there is a published payout on MLS, that commission can be negotiated - at the discretion of the agent and their supervising broker.

Often in short sale situations (where the bank ends up paying the Realtors) the bank will negotiate a lower fee. The agents can and often will accept the lower payout  or risk not being paid at all.

So yes, fees are negotiable even when a set number has been previously offered and published on MLS.
  • July 21 2012
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Profile picture for B Mike West
Commissions are negotiable.  However, I would ask you how hard an agent is going to work for you in negotiating your final selling price if they have already demonstrated that they will not negotiate hard for thier own pay check?  Is it in your best interest to select an agent who will yield to your request?  Also, be careful that you do not push so hard that your agent cuts to commission offer in the MLS to the agent who brings a ready, willing and able buyer. 

Is it more prudent to focus on your bottom line by selecting an agent who is going to be a strong negotiator?  That agent could get you a better net even though you are paying them 3%.  Being myopic about an agent's commission may be peny wise and pound foolish.
  • July 21 2012
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Profile picture for Dunes ..
All links are to information on the
Department Of Justice Anti-Trust Division Web Site:

Consumers can save thousands of dollars in commissions

Competition in Real Estate: Questions and answers

Brokerage services: Discount Brokers Can Make Selling a Home Less Costly

Rebates: Rebates Make Buying a Home Less Expensive

What are the laws in your state?

  • July 21 2012
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Profile picture for Ofe Polack
There are very few things in life that are not negotiable. 
  • July 21 2012
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Profile picture for craigfial
As mentioned everything is negotiable, but remember, agents are financially motivated.  Offering a low commission may not be in your best interests if you end up with a less qualified agent and your property sells for less than you want.  Interview potential agents and ask what they plan to do in order to sell the property.  Remember, agents don't get paid until the property sells and will spend their own money for marketing and advertising.  The less commission means less advertising.

 
  • July 21 2012
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To answer your one question......
Yes, in most cases (certainly with larger companies) the agency and Broker or Manager have  control over what an agent can or can't charge.

They (agents)  may have some leeway, but.............the company sets their own standards, and in order to work there, one has to follow them.

Now, if I feel a need to "adjust" my commission for whatever reason,  and I don't get "permission" from my manager first, the full "adjustment:" may come out of my pocket, rather than having the company share in it with me.
  • July 21 2012
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Profile picture for howardft
You and the real estate agent decide on the commission. Don't just go with a real estate agent who offers to sell your home for a low commission. The important thing is to find an agent with an excellent track record at selling homes who is reasonably priced. There are plenty out there, so you shouldn't have a hard time finding a great realtor. 
  • July 22 2012
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