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I think if you are ready to sign a new contract with him, then by all means renegotiate the commission!
- prwells
- Contributions:31
The current contract expires Feb 8th. I'm not so sure that I really want to sign another contract with him based on his total apathy as my agent.
Is it reasonable to ask any agent to take less commision based on the current market?
- another_dustbunny
- Contributions:807
It can't hurt to ask. If you're willing to price aggressively, I'd think some agents would accept a smaller percentage.
- prwells
- Contributions:31
Well in my mind..by smaller percentage I mean .... 3% versus the current 6% that we agreed to 6 months ago.
- broker_GRI
- Contributions:3454
You can always ask. But really why?
This is not the time for your agent to come down with such a serious case of “lack of communication”
You should change agency right now before it costs you anymore.
This is a time for skilled diligent guidance and if you have addressed these concerns and find this issue unresolved…save both of you the loss of time/money and graciously part ways
personally I think 6% is high. Whoever you wind up with I would try to get that down!
- 2 Big 2 Fail
- Contributions:0
Yes, you should reduce the commission. 6% is absurd. In my area, I can get a realtor to do 4% in the snap of a finger.
- prwells
- Contributions:31
Let me provide a little backend story so everyone understands where I'm at here.
I'm in the military..just a few years from retirement. Bought a house in Arizona thinking there's no way I will move again before I retire. Well..boy was I wrong. Found out in July that I would be moving 2 months later. I immediately listed the house when I found this out. It's been on the market since August 8th.
Having only owned the house for 2 years coupled with the downturn in the market I am pretty much screwed and have very little room to be flexible on my price. Unless of course I want to come to the closing table with a stack of cash.
I have been out of the house and several states away since September. Still paying the mortgage along with paying rent at my current locatioin. Needless to say this has stretched me quite thin financially.
If I could get the commision down around 3-4% that gives me a lot more room to lower the price.
That's my story and I'm sticking to it!
Good story pr LOL! anyway yes absolutely get that commission lowered! Have you thought about renting it?
- prwells
- Contributions:31
Yes I have considered pulling it off the market in February and trying to rent it.
Due to me being thousands of miles away I would obviously have to hire a property manager. There's no way for me to be the landlord.
Renting is my last resort at this point and I have no delusions about being able to sell it while there's a rental tenant in the house. I know that isn't going to work.
- broker_GRI
- Contributions:3454
Ask another agent to list at whatever commission you negotiate. This agent could list you for 0% and cost you more than you can even imagine if they are not doing the job.
- pinksandbaby
- Contributions:8551
around here 4% is an acceptable commish, and the house prices are pretty high. 6% has gone the way of the dinosaur. I'd suggest do your research on agents, (check for virtual tours and extra pics on Realtor.com) ask them where they'd price it to SELL (not sit) then negotiate commish. If it's priced well and could sell faster they have to spend less advertising dollars so everyone wins.
GL, and thanks for serving our country!
- prwells
- Contributions:31
Thanks for the advice folks.
So from what I'm gathering at this point 4% is a realistic number?
- prwells
- Contributions:31
Also could I ask my current listing agent to reduce the 6% commision now or am I out of luck since we're under contract until February?
- Calton Wells, "Cwells"
- Contributions:5
Everything is negotiable and it is a reasonable request, however depending on the housing market in your area that could be the reason why you haven’t received any offers. If your house is priced within the range of value for your area then I wouldn’t recommend a price change. There are other factors to check first. Have your agent give you a list of homes sold in the last 6 months. Check the DOM (Days On Market) to see how long those homes took to sell and compare the selling price to the list price. This will give you some insight on the pace of your market. You can also request a report from your agent of all the methods he or she has used to market your house (Newspaper, Internet, Open House, MLS, Mail Outs, etc.). If you believe that your agent isn’t servicing or marketing your home to your satisfaction, then you should find another one after your contract expires. Although I will say that commission is always a sensitive topic for both agent and client.
- pinksandbaby
- Contributions:8551
You can certainly ask... maybe just approach as a price ammendment and a compensation ammendment. You *both* want it to sell and something is better than nothing. If s/he doesn't agree see if you can void the contract and move on.
- From Gig Harbor
- Contributions:244
Just remember whatever you negotiate is split with the selling agent. So, if you were thinking 3% that is only 1.5% for each and I think that is a little low even in this market.
You could offer 4-5% with the agent accepting less if they actually find the buyer.
- jumpupanddownandyell
- Contributions:76
realtors adjust their commission at sale anyway.....they'd be crazy to lose a sale over a a couple percent....it happens all the time
- prwells
- Contributions:31
I am aware of how the split works if there are two agents involved. I've made up my mind at this point and 4% is the number I'm comfortable with.
This isn't the first house I've owned or sold..but it's certainly the first one that's giving me gray hair !! LOL
I feel so bad about this as I've always been very meticulous when it comes to making good financial decisions. Unfortunately in this case everything has backfired on me and in a way it's not totally my fault (the military move). Right now all I'm seeing is 18 years of good credit about to be flushed down the toilet over this house.
- Alan May
- Contributions:4377
<<realtors adjust their commission at sale anyway.....they'd be crazy to lose a sale over a a couple percent....it happens all the time>>
sure they do... and how many closings have you witnessed this on fred?
let's see... the agent is charging 6%... half of that going to the buyer's agent... leaving 3% for the listing agent... approx. half of that he needs to share with his office... leaving 1.5% for the listing agent... minus any advertising or expenses he might have paid... sure... he'd be delighted to reduce his 1.5% to a minus .5%, and pay YOU... happens all the time
what a crock.
- Winifred
- Contributions:842
I wish 4% was the norm around here. They look at you like you have two heads if you ask for a commission lower than 5.5% in these parts. When we were ready to list I asked our previous agent who sold us this house and our other house during the boom if she would take a lower commission since she had already made two very good commissions with minimal work -- a resounding no. We didn't sign with her.
- Alan May
- Contributions:4377
.. and what did the agent you signed with charge you winifred?
- prwells
- Contributions:31
ELV!S,
What you said makes sense..but "what if" my agent sells the house and there's no buyer's agent involved. He makes out pretty good in that scenario.
Winifred,
As I mentioned earlier. My current agent is also the same agent that sold me this house I'm trying to sell. He cashed in on that deal with practically zero effort on his part. When he and I signed the current contract he didn't even hint at cutting me a break on the commission.
Honestly I really never had a problem paying 6% ..until 5 months passed without an offer. A refusal by my agent to hold an open house when I requested one to be held. And now that I'm seeing a decrease in the market value he has yet to suggest a price drop.
Here's his definition of marketing:
Listing on his parent company's website
An advertisement on Sat & Sun in the local newspaper
A one picture listing on realtor.com
I had to practically order him to put flyers on the For Sale sign when we initially listed the house. He didn't plan to do it until I inisisted.
As far as I know he's doing nothing on his own to market/push the sale of my house.
Communication on his part is practically non-existent unless I bug him continuously.
In my opinion he's not earning 6%, so why should I feel obligated to pay him 6%?
- Alan May
- Contributions:4377
>>What you said makes sense..but "what if" my agent sells the house and there's no buyer's agent involved. He makes out pretty good in that scenario<<
I've argued on these boards before, that I agree a listing agent should, if he brings the buyer too:
1) reduce his commission from 6% to 4% (returning that 2% to the seller, to do with as he pleases.
or
2) turn the buyer over to another agent so they are truly represented, and it's not a dual agency situation
but all of that should be agreed to and understood in advance... not held over the agent or seller's head in the midst of an "offer".
- prwells
- Contributions:31
My agent has made no offer to refund part of his commission if he sells the house directly to a buyer. Of course at the rate he's going I doubt that will ever happen anyway LOL
- Alan May
- Contributions:4377
... and I agree, based on what you're telling us that he's not carrying his side of the deal.
But that's not an argument to reduce his commission (why should you feel obligated??? because you signed a document that obligates you)... it's an argument to FIRE his buttocks. You shouldn't have to push him to market, nor push him to communicate, and you shouldn't have to be for him to hold an open (if you agreed on it beforehand... some agents don't do them... ask Marci)
- prwells
- Contributions:31
I understand that I signed a contract and I'm a man of my word. At the same time he's bound to certain things by that contract that he's not living up to (in my opinion). I really don't feel I need to provide him with a reason if I do chose to fire him, that's why I haven't dwelled much on that lately. If I decide to fire him tomorrow, it's a phone call away with no explanation as far as I'm concerned.
The open house issue stemmed from him taking a 3 week vacation and having another agent cover for him while he was gone. This just so happened to fall at the exact time I wanted to do an open house. His story is that the agent covering for him doesn't do open houses so you'll just have to wait. Understandable..BUT I feel he should have somehow made it work, even if it meant throwing a couple dollars at the agent covering him so she could hold the open house as I requested.
Anyway..here's my listing if anyone care's to critique it
http://www.longrealty.com/Listing/ListingDetail.aspx?Search=7e66c399-5f8d-4365-927a-9dfecbf5b499&Listing=24265209&IRPAgentID=9302209&Image=1&First=21&Last=30&pagesize=10&SearchType=geographic&ListingDistrictTypeID=&FirstLetter=&Sort=6&Cookies=&UseColorBar=false
OT...Hi Elvis!! been a long time since we rock and rolled! How were your holidays?
- broker_GRI
- Contributions:3454
Once again Elv!s comes through w/some more valuable advice.
I rarely do opens (usually I’ll have another agent from the office hold my homes open)
One thing is very sure…most of my clients know more about what’s going on in their and “the” market than 75% of the agents around here.
We make guidelines when listing about how and when to communicate and while I know that most of them are tired of hearing the phone call from me asking, “should we meet at your house or do you want to come into the office?” (price reduction) they are usually prepared.
If you asked me to reduce my commission at a listing appointment I would respectfully decline. OTOH I have offered to do so and have on occasion used my commission to close
deals.
You’re not obligated to lose money because you have a contract that is not being fulfilled by your agent. Were I the agent and you felt as though you were not being served well by me… I would help you find another NBD(there is a referral fee that goes w/that).
Never put up w/shoddy service at any price
- prwells
- Contributions:31
So is it safe to say I'm getting shoddy service?
I'm trying not to be overly critical and want to be objective ... it's just hard as the seller in a bad position in the first place.
Is it unreasonable to ask my agent to reduce his commision?
My house will have been on the market for 6 months in February with not one single offer. My current listing agent is the same agent that sold me the house so he's already cashed in once on this same home.
He's currently charging me a 6% commision. He's done very little in the way of advising me during the time it's been listed. I am to the point now where I would like to drop the price a bit but I also feel that I should ask him to charge less on the commision. In today's weak market would I be out of line asking him to do this?
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