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- Sam DeBord, "SeattleHome.com"
- Contributions:3472
This question was from January, folks.
Have you already signed a contract with your agent? Commissions can be negotiable. Talk to your agent and see.
- Leanne Aiken, "Leanne Draeger Aiken"
- Contributions:23
Depends....everythings negotiable but these are two seperate transactions, double the work and responsibility.
- Frank Festa, "Frank J Festa"
- Contributions:1188
Brothers and Sisters, I would love for Ptluvstravel to respond. Regards,
- Connie Wildasinn, "Connie Wildasin"
- Contributions:1178
I don't think so, it is two seperate transactions, they may have to do everyones jobs, and get the deal through for you... are you more concerned with 1% or thousands more off in price or terms that your realtor may be able to get for you... plus you have no way of knowing what the commission is they are being paid on the deal you are buying... if you have a good agent, they will work for every penny ... deals are harder and harder to get to close these days, and a good agent is worth their weight in gold as they say...
I know many think we make too much money, but in all the decades I have worked not one seller ever gave me a part of the profit in the good times, and sure wanted absoultly everyting in the bad times... Heck I even fronted utlities money on a short sale last year with the understanding that seller would reimburse me... in the end he said 'you made the money not me, why should I pay!" like I owned him because he was upside down... I didn't tell him to buy or sell ... he sought me out... so
if you like to go work each week and not get paid that is what you are doing to your agent in the end... I know you like to show up Monday - Friday and on pay day the boss tell you ... 'sorry joe, your chek is now 10% less cause you worked last week and you will work next week'
Hey makes since to me
I know many think we make too much money, but in all the decades I have worked not one seller ever gave me a part of the profit in the good times, and sure wanted absoultly everyting in the bad times... Heck I even fronted utlities money on a short sale last year with the understanding that seller would reimburse me... in the end he said 'you made the money not me, why should I pay!" like I owned him because he was upside down... I didn't tell him to buy or sell ... he sought me out... so
if you like to go work each week and not get paid that is what you are doing to your agent in the end... I know you like to show up Monday - Friday and on pay day the boss tell you ... 'sorry joe, your chek is now 10% less cause you worked last week and you will work next week'
Hey makes since to me
- Rob Graham, "Rob Graham"
- Contributions:171
Everything is negotiable. Ask your agent what they are comfortable with.
- Tonya Brobeck, "Tonya Brobeck"
- Contributions:637
I suppose the way I look at it regardless of the client or situation is: I am hesitant to take a reduced commission for the simple fact that right now is very hard to sell houses, more and more homes already have a reduced commisson for the selling office, meaning 2.5% or 3% on the 1st 100k, 1.5% on the remaining, and sometimes even $2,500 total. So I make it a priority to write the deal at 6%, 3% and 3%. I think a lot of the public forgets this is our job/career. That us full time agents work 40-60 hrs a week to stay current on market conditions, and new changes (which are happening all to often right now). Not to mention the marketing costs involved now to get maximum exposure. Needless to say, anytime I have turned down a listing requesting a reduced commission, they come back to me within a few months. Then the job is even harder since they have the accumlative days on the market against them. The benefit I have is they rotate on the area list w/new listings, price reductions, etc for a few days.
Not too mention, any reduced commision agent or broker I have come behind on has the place completly over priced, and has failed the seller by not watching the market closely or mislead them to start with just to get the listing.
I'm not saying I haven't reduced commission before, in fact quite the opposite, however, I prefer to do it on the selling side & pay for a portion of the closing cost etc. Then I know their house has sold, which is generally the harder of the 2 transactions.
Not too mention, any reduced commision agent or broker I have come behind on has the place completly over priced, and has failed the seller by not watching the market closely or mislead them to start with just to get the listing.
I'm not saying I haven't reduced commission before, in fact quite the opposite, however, I prefer to do it on the selling side & pay for a portion of the closing cost etc. Then I know their house has sold, which is generally the harder of the 2 transactions.
- Frank Festa, "Frank J Festa"
- Contributions:1188
Tonya: Good points! Also, we should all work on NAR. Regards,
- Mack McCoy
- Contributions:1118
OMG, Tonya, I am so sorry! (blush red blush red red blush!)!
Putting aside ptluvstravel for the moment . . .
The thing about "negotiations," is that there's a give and a take - it's not William Shatner "Now, you're negotiating!"
If you're easy, you've got the house ready to go to market, you're not trying to buy contingent, sure, maybe we can work something out. Realistically, though, if you're trying to buy a house and yours isn't ready and this is the umpteenth time we've gone out looking at houses . . . I'm wondering why you never offer me an extra point on the deal? (Actually, my clients have, but I don't see that question asked on Zillow much.)
Putting aside ptluvstravel for the moment . . .
The thing about "negotiations," is that there's a give and a take - it's not William Shatner "Now, you're negotiating!"
If you're easy, you've got the house ready to go to market, you're not trying to buy contingent, sure, maybe we can work something out. Realistically, though, if you're trying to buy a house and yours isn't ready and this is the umpteenth time we've gone out looking at houses . . . I'm wondering why you never offer me an extra point on the deal? (Actually, my clients have, but I don't see that question asked on Zillow much.)
- Tonya Brobeck, "Tonya Brobeck"
- Contributions:637
Frank,
I'm sorry I think I misunderstood you. As for the NAR advertising us as commission only, that will be the day, right?
Most buyers I run across don't even know they don't pay an agent & that provided it's not a FSBO (which even many pay buyers agent). Clients think all the time they should go directly to the seller as to not have to pay for their own agent. Too many aren't aware of the liablility issues involved either.
But then again, I hate to be negative, but I've seen deals done with agents were boundaries were misrepresented or inspectors didn't do a good job & rock walls fell on houses or sewer lines burst after purchase.
Reputation & experience are worth the money that's for sure
I'm sorry I think I misunderstood you. As for the NAR advertising us as commission only, that will be the day, right?
Most buyers I run across don't even know they don't pay an agent & that provided it's not a FSBO (which even many pay buyers agent). Clients think all the time they should go directly to the seller as to not have to pay for their own agent. Too many aren't aware of the liablility issues involved either.
But then again, I hate to be negative, but I've seen deals done with agents were boundaries were misrepresented or inspectors didn't do a good job & rock walls fell on houses or sewer lines burst after purchase.
Reputation & experience are worth the money that's for sure
- ConnectiveRealty
- Contributions:2
All commissions are negotiable regardless of whether your agent is representing you as a buyer, seller or both. It's up too you to ask for it and if your agent tells you that they can't do it or won't do it then it's up to you to decide whether you need to be talking to different agent.
Personally, if one of our clients signs a buyers representation agreement at the same time as the listing agreement, I would be more than willing to negociate a lower rate. In fact I would suggest a lower rate in order to get the buyers representation agreement particularily with co-operative clients and higher end properties.
Personally, if one of our clients signs a buyers representation agreement at the same time as the listing agreement, I would be more than willing to negociate a lower rate. In fact I would suggest a lower rate in order to get the buyers representation agreement particularily with co-operative clients and higher end properties.
- Frank Festa, "Frank J Festa"
- Contributions:1188
Tonya: You stated, "Was that necessary. Aren't most agents/realtors 1099?" With all due respect, we know that we are subs, however, most people don't understand that we work on 100% commission. I believe that NAR should advertise that fact. Regards
- Tonya Brobeck, "Tonya Brobeck"
- Contributions:637
And Mack,
I agree with you. I don't think it's something we have an actual standard for, more a case by case basis depending on the agent, client, properties involved, etc.
btw...my name is Tonya not Donna:)
I agree with you. I don't think it's something we have an actual standard for, more a case by case basis depending on the agent, client, properties involved, etc.
btw...my name is Tonya not Donna:)
- Tonya Brobeck, "Tonya Brobeck"
- Contributions:637
Frank,
Was that necessary. Aren't most agents/realtors 1099?
Was that necessary. Aren't most agents/realtors 1099?
- Alan May
- Contributions:4377
I presume from the way that you've phrased your question "shouldn't I get a percent off..." that you've already asked your agent, and they've said "no".
Some agents will discount for multiple transactions (a buy and a sell), and some won't. If you've discussed this with your agent, and s/he's given you an answer, you either have to live with that (if you like your agent), or go find another agent who will discount for the two transactions.
I'm sure they exist. They won't be the same agent that you know you already like. You won't have any history together, or know that you trust them, know their work habits... etc.... you get the idea.
Only you can answer whether it's worth keeping your existing agent, or pursuing that elusive 1% discount.
Good luck.
Some agents will discount for multiple transactions (a buy and a sell), and some won't. If you've discussed this with your agent, and s/he's given you an answer, you either have to live with that (if you like your agent), or go find another agent who will discount for the two transactions.
I'm sure they exist. They won't be the same agent that you know you already like. You won't have any history together, or know that you trust them, know their work habits... etc.... you get the idea.
Only you can answer whether it's worth keeping your existing agent, or pursuing that elusive 1% discount.
Good luck.
- Frank Festa, "Frank J Festa"
- Contributions:1188
Mack: Do your clients understand that you are a sub-contractor and don't receive a regular pay-check? Regards,
- Mack McCoy
- Contributions:1118
No, Donna, I don't know this person, and I do love and value my clients who ask me to help them sell to buy another home. It's just that people don't necessarily realize that this is the occasion where an agent's expertise matters the most, let alone the teensy fact that it usually takes 'way more than twice an agent's time to put these two deals together.
So my point is that rather than asking them to take a "volume" discount, since these transactions are actually more difficult, it might be worthwhile to simply let the agents keep their commissions and let them know that you appreciate them navigating these particularly difficult waters.
So my point is that rather than asking them to take a "volume" discount, since these transactions are actually more difficult, it might be worthwhile to simply let the agents keep their commissions and let them know that you appreciate them navigating these particularly difficult waters.
- Tonya Brobeck, "Tonya Brobeck"
- Contributions:637
Mack,
I'm so confused. What is that all about? Do you personally know the person asking the question? If what your saying is the scenario then I actually do agree with you.
I'm so confused. What is that all about? Do you personally know the person asking the question? If what your saying is the scenario then I actually do agree with you.
- Frank Festa, "Frank J Festa"
- Contributions:1188
Mack, you point is well taken. Regards,
- Mack McCoy
- Contributions:1118
If the move-up or move-down buyer was only as easy or easier as two separate clients. But, you're not. You're 'way more difficult than two clients.
This doesn't mean that we don't appreciate you, it doesn't mean we don't appreciate your business. If you really did make it easier - for example, you got your house ready-to-sell within a few weeks of our first meeting, rather than our spending parts of two years together consulting on it; if you went out and bought something out of the current inventory, instead of our having spent many weekends over the past several years looking at properties while we provided you with referrals to architects and contractors and helped you evaluate plans to make the current home satisfactory . . .
Most of the time, I think the agent that serves the move-up or move-down buyer deserves a premium, rather than a discount.
This doesn't mean that we don't appreciate you, it doesn't mean we don't appreciate your business. If you really did make it easier - for example, you got your house ready-to-sell within a few weeks of our first meeting, rather than our spending parts of two years together consulting on it; if you went out and bought something out of the current inventory, instead of our having spent many weekends over the past several years looking at properties while we provided you with referrals to architects and contractors and helped you evaluate plans to make the current home satisfactory . . .
Most of the time, I think the agent that serves the move-up or move-down buyer deserves a premium, rather than a discount.
- JT Kaelin, "HouseJT"
- Contributions:28
Your agent will sell your new home. What fee do you think is fair?
Your agent will help buy a new home. What fee do you think is fair?
remember fees are often split or shared with other agents in each transaction. Consider paying hourly like a lawyer fee, then compare each.
What is your out of pocket retainer fee paid in advance to the lawyer vs the real estate agent?
Everyone wants to save money, but lets not starve the fisherman when you want fish.
Your agent will help buy a new home. What fee do you think is fair?
remember fees are often split or shared with other agents in each transaction. Consider paying hourly like a lawyer fee, then compare each.
What is your out of pocket retainer fee paid in advance to the lawyer vs the real estate agent?
Everyone wants to save money, but lets not starve the fisherman when you want fish.
- agentblu15
- Contributions:353
Nancy Lee-
That is interesting. I guess I would look at that as someone doing two separate jobs for me - I would expect to pay them for each job. I suspect I would not even think of it a cumulative thing. Hmmm, something to think about.
I would agree that it is two separate transactions, but examples of discounts for volume business or repeat business can be found in just about every situation where goods or services are involved.
-If I buy a cup of coffee from the local Co-Gos, I pay $1.50. But if buy my coffee there every morning, I get a punch card that lets me get every 6th cup free.
-if I order one widget from an online retailer, I pay $20. But if I order 10 or more widgets from the same retailer, I get them for $15 each.
-I had a fencing company install a privacy fence last year. When the job was done, they gave me a certificate for 20% off any future work from them.
-I buy a car from a GM dealer. GM offers me a $4000 loyalty bonus if I buy my next car from them too.
That is interesting. I guess I would look at that as someone doing two separate jobs for me - I would expect to pay them for each job. I suspect I would not even think of it a cumulative thing. Hmmm, something to think about.
I would agree that it is two separate transactions, but examples of discounts for volume business or repeat business can be found in just about every situation where goods or services are involved.
-If I buy a cup of coffee from the local Co-Gos, I pay $1.50. But if buy my coffee there every morning, I get a punch card that lets me get every 6th cup free.
-if I order one widget from an online retailer, I pay $20. But if I order 10 or more widgets from the same retailer, I get them for $15 each.
-I had a fencing company install a privacy fence last year. When the job was done, they gave me a certificate for 20% off any future work from them.
-I buy a car from a GM dealer. GM offers me a $4000 loyalty bonus if I buy my next car from them too.
- Frank Festa, "Frank J Festa"
- Contributions:1188
ptluvstravel: Thank you for using a REALTOR to Buy & Sell your real estate property. Have you asked your Agent for 1% off of the 6% commission, all Commissions are negotiable. Regards,
- Jennifer Young, "Jennifer Young Homes"
- Contributions:392
In Virginia, if we were helping a buyer find a new home and we were listing their current home for sale, I would honor a request of reduced selling side commission - typically 1% off max.
- Song San, "song san"
- Contributions:85
Commissions are usually negotiable, but in CA it is illegal for agents to give kickbacks. There are a few buyers that I came across last month that wanted 50% of my commission if I help them buy a home because their other agent was offering that.
I don't think your request is unreasonable, but make sure you have everything in writing.
I don't think your request is unreasonable, but make sure you have everything in writing.
- Barry Bergner, "barrybergner"
- Contributions:155
A good agent that can show his or her worth will not need to discount their fees. All you are looking for when you ask for a discount is a tangible number that you can see. Trust me, a poor agent can cost you far more than the 1% (or whatever discount you are talking about) you are looking for. I would be concerned about how hard an agent would negotiate for me if they can't even negotiate and defend their own commission. There are compensation models based on how much they get for your home or how much they negotiate off of the list price of the home you purchase. Typically those would have more than a 6% upper end for good performance. Bottom line, ask your agent to articulate his value.
- Paul Klenk, "Paul K Olympia Agent"
- Contributions:503
Assuming you are a good client and easy to work with, the transactions are simple the commission would likley be negotiable. If you are a good referral source only increases your value as a client to your agent. And... the agent you are paying is worth the money this is a win-win. An agent working your purchase and sale can be priceless with the stress that typically arises. Think it through before you expect the agent to reduce the commission. I would recommend the conversation occur, but that you don't demand or expect it.
Your agent may suprise you by coming to the table offering a different commission than you expected - to your benefit. I know a number of good agents that 'treasure' a good client and that reward comes to the client in the form of a reduced commission.
A thought - check that the 'reduction' doesn't come at the expense of reducing the commission to the agent that brings the buyer to your home. Your agent should be protecting the commission to the agent you need to bring your buyer.
Your agent may suprise you by coming to the table offering a different commission than you expected - to your benefit. I know a number of good agents that 'treasure' a good client and that reward comes to the client in the form of a reduced commission.
A thought - check that the 'reduction' doesn't come at the expense of reducing the commission to the agent that brings the buyer to your home. Your agent should be protecting the commission to the agent you need to bring your buyer.
- Tonya Brobeck, "Tonya Brobeck"
- Contributions:637
Every client should ask questions about commissions. Not all agents are worth even 1%. The best advice I can tell you is if you have a reputable agent/realtor they are worth it. They work sometimes many months, none the less tons of hours preparing, marketing, routing calls, advertising, coordinating between the scenes w/lenders, escrow, title, now many banks & negotiating etc. It is very true that less is not usually best in our industry. Check their references, call past clients, get a strategic game plan from them regarding your home & how they plan on selling it. Make sure they walk the walk not just talk the talk.
- John Stewart, "nwhome.us"
- Contributions:2166
I wouldn't focus on the first commission. At the end of the sale you may feel that the relationship won't endure the purchase. The purchase may take months to complete.
There are a many different ways that can express the gratitude to a customer who is loyal to the service that we as Realtors provide:
Dinner for 2 at your favorite restaurant, a Spa day for you and a friend, a new hot water tank for the purchased property, a Home Warrantee for the purchased property, support in finding a rental for the time-frame between the sale and purchase, be creative.....
Negotiation is often a matter of finding alternative solutions to typical challenges. Think of something else that would make YOU motivated to be loyal to your agent. An adequately compensated agent is more motivated to work harder for you (that should be your litmus test; are they working hard for you?)
There are a many different ways that can express the gratitude to a customer who is loyal to the service that we as Realtors provide:
Dinner for 2 at your favorite restaurant, a Spa day for you and a friend, a new hot water tank for the purchased property, a Home Warrantee for the purchased property, support in finding a rental for the time-frame between the sale and purchase, be creative.....
Negotiation is often a matter of finding alternative solutions to typical challenges. Think of something else that would make YOU motivated to be loyal to your agent. An adequately compensated agent is more motivated to work harder for you (that should be your litmus test; are they working hard for you?)
- wetdawgs
- Contributions:26854
Commissions are negotiable.
Of course, remember when you think of the 6% that it is split four ways so your agent is really getting 1.5% from each transaction. So, if you ask them to drop 1% you are asking for one transaction for close to nothing for their activities.
Of course, remember when you think of the 6% that it is split four ways so your agent is really getting 1.5% from each transaction. So, if you ask them to drop 1% you are asking for one transaction for close to nothing for their activities.
my agent will sell my home and help me buy my new home. shouldn't i get a percent off of the 6% comm
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