1,153,794
The co-op fee was clearly stated, the home sold, they got paid, end of story!
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Tony and Suzanne Marri...
Scottsdale, AZ
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Katina Hargrove 352-55...
Eustis, FL
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Kelly Turbeville
Lake Forest, CA
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Shirley Coomer
Phoenix, AZ
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Nina Hollander, Broker
Charlotte, NC
1,453,069
I always earn at least 1% higher as the listing agent. It costs me more to advertise etc. It is stipulated on the Listing Agreement and the Sellers agree that the Listing Brokerage should get more.
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Tony and Suzanne Marri...
Scottsdale, AZ
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TENNESSEE HOME TEAM
Murfreesboro, TN
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Nina Hollander, Broker
Charlotte, NC
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Susan Emo
Kingston, ON
911,338
We post % in MLS, and that's it. On short sales, it's the listing agents responsibilty to know ahead of time which lenders don't pay 6% on short sales. But if 2.5% was offered, that's what buyers agent should be paid, and be glad to get that. Agent has no right to complain, and she better be careful about accusing people of cheating her.
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Tony and Suzanne Marri...
Scottsdale, AZ
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TENNESSEE HOME TEAM
Murfreesboro, TN
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Tabitha Rector-Richardson
Owings Mills, MD
466,778
Daniel W. Hayes,
The compensation offered is clear in the MLS. I have seen HUD-1's when the other agent gets more and my reaction is: "Good for them" I work both ends of the transaction and listings sides require more work and upkeep.
To answer your question, it all depends on the listings location and price point and it is signed by the seller on the listing contract.
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Tammy Lankford,
Eatonton, GA
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Tony and Suzanne Marri...
Scottsdale, AZ
921,504
"Do you ever offer the buyer's agent less then you receive in commission?"
Yes, EVERY TIME.
Do buyers agents try to negotiate the compensation higher than what is published. (see Mike Schmidt ) Yes, very often.
Time to put on the BIG BOY BRITCHES and fight for the compensation to which you believe you are worthy.
It would be interesting to research the subject agent and see if they are a discounter or rebater. That would make the insincerity of their complaint absolutely comical.
Now, because my seller knows I am the deliverer of solutions, not problems, they understand the extent of the services I provide and are fully aware that compensation will go to the one who they have hired and what is required to meet their goals. In many cases the solutions I deliver is way beyond the scope of consideration of most agents. The home owner agrees I should be compensated accordingly.
The assumption of any agent that compensation is by default 50/50 is the mark of a true amature.
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Tony and Suzanne Marri...
Scottsdale, AZ
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TENNESSEE HOME TEAM
Murfreesboro, TN
1,390,113
We always offer 1/2 of the total commission to the buyer's agent.
If you disclosed the commission split in the listing, as we are required to by law here, then I can see why the agent is upset with herself for not reading more clearly, but I can't see why she's upset with you.
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Tony and Suzanne Marri...
Scottsdale, AZ
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Wayne Zuhl
Cranford, NJ
440,656
Our MLS requires us to state the commission in the listing so no one is ever surprised as to what they will receive. Short sales are a lot of work. I have done all the negotiations and paperwork with the banks but now pay a negotiator who does this full time. It takes a lot of work to list and complete the sale on a short sale. The additional commission is easily justified for the additional work required, not to mention this can take months to close.....many don't if the bank is unreasonable or the seller does not agree to the terms of the bank's approval. Also our state listing agreements require us to state the percent of commission going to the listing agent and the percent to the buyer's agent. You deserved every bit of your commission. She is fortunate she had a listing agent who was able to navigate the short sale process and successfully close the transaction.
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Tony and Suzanne Marri...
Scottsdale, AZ
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TENNESSEE HOME TEAM
Murfreesboro, TN
61,641
I always offer the same or 1/2 % more to the buyers agent. However, in your case since you identified the commission offered and they found a buyer to purchase the property. I have not found a seller willing to exceed the 6% commission.
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Tony and Suzanne Marri...
Scottsdale, AZ
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Wayne Zuhl
Cranford, NJ
273,237
This is crazy. If you disclosed what they were getting from the outset I don't really see an issue.
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Tony and Suzanne Marri...
Scottsdale, AZ
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TENNESSEE HOME TEAM
Murfreesboro, TN
613,494
What I always wonder is...does the seller know that you are giving less than a 50/50 split? Since a lower commission does effect the marketibility of the property that needs to be disclosed and agreed to by the seller.
Other that that I don't like a smaller split, but I understand it.
One time when the short sale cut the gross commission, I had the buyer pay the difference for both us and the listing agent. (or agent would not close)
Eve
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Tony and Suzanne Marri...
Scottsdale, AZ
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Wayne Zuhl
Cranford, NJ
115,432
You did not cheat her out of anything. I presume the amount to be "paid out" was disclosed on the listing - she received what was promised.
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Tony and Suzanne Marri...
Scottsdale, AZ
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Katina Hargrove 352-55...
Eustis, FL
117,040
I think your response was excellent. I did this on a listing. The home required major work to get it ready for sale, and we did everything, including cleaning out the house, fixing the plumbing, and manging the renovation projects. The buyer's agent's commission was listed on the MLS at 2.5% and the buyer's agent didn't say anything about our 3.5% commission. If the other agent is unhappy, that's just too bad. You did more work, you should get more commission. Bottom line: Life isn't fair. As soon as you realize that, things are a loteasier.
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TENNESSEE HOME TEAM
Murfreesboro, TN
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Nina Hollander, Broker
Charlotte, NC
292,685
I have always given myself 3.5% in the listing side because I do all of negotiations and short sale package and pay dues for Resnet and Equator so I take more and think I earned it. It's not easy doing the negotiations
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Shirley Coomer
Phoenix, AZ
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Nina Hollander, Broker
Charlotte, NC
3,988,007
I have and as long as it is disclosed in MLS upfront the other agent should keep her mouth shut. Nothing says it has to be split 50/50. You were kinder than I would have been by explaining it to her.
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TENNESSEE HOME TEAM
Murfreesboro, TN
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Nina Hollander, Broker
Charlotte, NC
979,496
Daniel - I have never offered less commission to a buyer's agent.
However, I have no issue with what you did because you fully disclosed what the buyer's agent was to receive. It is really none of their business what the seller decides to pay you as the listing agent.
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Tony and Suzanne Marri...
Scottsdale, AZ
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Nina Hollander, Broker
Charlotte, NC
2,443,250
Daniel, this is near and dear to my heart! I worked short sales from 2008 to 2011 and I worked hard. I did the same thing. I didn't care what their opinion was nor do I care today. When doing regular sales I split the commission 50/50, it was just the short sales I did that way. Recently a listing agent did that on a regular home and I was not happy.
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Tabitha Rector-Richardson
Owings Mills, MD
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Nina Hollander, Broker
Charlotte, NC
150,719
Full disclosure then no problems
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Tony and Suzanne Marri...
Scottsdale, AZ
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Nina Hollander, Broker
Charlotte, NC
48,618
I have offered less than my amount, and will if circumstances dictate. In our MLS, members agree to offer compensation to selling companies. The commission amount is clearly stated on the listing sheet. If the buyer's agent is not happy with the compensation arrangement, they can alway call and ask about it. Otherwise, I will alway assume they are ok with the amount that is being offered. Now, that doesn't automatically mean I am going to change it; total commission and commission splits are discussed with my seller clients when I take the listing. They sign off on how total commission is to be shared. For the selling company to complain about it after closing, or perhaps when they take a look at the HUD-1, is not my concern. Like you said, if it is that important, they should have a buyer agency agreement in place that covers any perceived "shortage" that comes up.
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TENNESSEE HOME TEAM
Murfreesboro, TN
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Nina Hollander, Broker
Charlotte, NC
699,277
No I have not however if it's listed as 2.5 in the MLS then it's none of her business. I recently closed a deal where the buyers agent got a wopping 6% and I got 3. I gave him 3 and the BUYER gave him another 3%.
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Tony and Suzanne Marri...
Scottsdale, AZ
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Nina Hollander, Broker
Charlotte, NC
274,059
I have never offered less than I receive. That's been tried in this area but it did not go over very well. Sometimes it does not seem fair on an even split but in the long haul it will even out and everyone stays happy.
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Wayne Zuhl
Cranford, NJ
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Cindy Davis
San Diego, CA
212,755
I have never offered less, but if you state it in the MLS and documents from the start she has no reason to be unhappy. Everything was stated.
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Nina Hollander, Broker
Charlotte, NC
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Cindy Davis
San Diego, CA
3,164,294
my question is does your listing agreement specify what % you offer the selling agent? In Georgia it does and most sellers aren't happy with an uneven split if they read what they sign.
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Tony and Suzanne Marri...
Scottsdale, AZ
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Wayne Zuhl
Cranford, NJ
784,786
4,319,419
Daniel W. Hayes the co-broke compensation was disclosed in MLS.
The co-broke has no reason to get upset.
And depending on what you decide, you may offer more or less than what you earn on each listing. Nothing wrong in it.
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Tony and Suzanne Marri...
Scottsdale, AZ
1,712,676
I feel your pain. We closed over 250 shorts sales in about 5 years and the amount of work to get it done was crazy, and the % of first contracts closings was no better than 75% because the buyer would keep looking. You deserve 3.5% and more.
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Tony and Suzanne Marri...
Scottsdale, AZ
221,286
Another open discussion about commission splits between agencies.
The short of it: Listing commission is between the listing agency and the seller. The selling agency has no standing in any aspect of this contract.
The long of it: Personally speaking, I do not buy a listing agency's claim that it is more costly to list a property than to sell a property as a Buyer Agent. The pendulum has swung back to internet emphasis on the listing side for many reasons (worthy of a topic on their own). Securing buyer clients is a marketing expense every bit as costly, if not more costly, than marketing a property.
We know going into a transaction what the compensation will be and that it is not negotiable.
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Tony and Suzanne Marri...
Scottsdale, AZ
55,296
With my first short sale transaction as the Buyers Agent, the same thing happened to me and I was a litle upset. However, after learning all that is required to be the listing agent in a short sale transaction, I did the same thing. It is common practice here is Maryland. As you mentioned, they Buyer has the right to charge their client the additional compensation if they negotiated that in their Exclusive Buyer Agency agreement.
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Tony and Suzanne Marri...
Scottsdale, AZ
4,883,242
Hey buyers agent what is published in mls is what you are owed.
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Tony and Suzanne Marri...
Scottsdale, AZ
5,104,931
In our mls we have to state up front how commission will be split. After that, it's up to the selling agent to sell that home or not at the stated commission.
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Tony and Suzanne Marri...
Scottsdale, AZ
3,340,443
In our market there is almost never an equal split of commission...3.6 to list and 2.4 is "usual" and the lsiting in our MLS would state what the Selling side reeives.
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Tony and Suzanne Marri...
Scottsdale, AZ
2,538,633
Good morning Daniel. As long as all was disclosed properly, that is just the way it is. Unfortunately some will never be satisfied.
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Tony and Suzanne Marri...
Scottsdale, AZ
6,393,609
We have one mls region here where the routine is to go with a 4/2 split.
616,549
I always split my commission equally because I want to promote good will with my coop agent, even when I go the extra yard, i.e. light staging at my expense. Recently I am the selling agent for buyers that I have been working with for a long time. I helped them find a rental at a good rate in a climate that almost impossible to rent. Recently we finally found a home after a long search, many showings, one cancelled escrow due to many issues. The home was listed by an out of town agent so I helped the agent a lot by helping her with septic inspection, found the map to show location of septic tank, went over to the house to turn on the water since the owners, gave her all the local addenda,...She did not do any staging to spruce up the house. There were stuff left in bathrooms and other places. My clients did not even want to see it at first since the pictures were not professionally done and it did not show the house at its best. I had to convince them to view it since I know it's in the location they prefer. The MLS stated 2.5% so I assumed that she got a 5% listing agreement. I was unpleasantly surprised when I got the estimated closing statement and saw that she kept 3.5% while doing minimum work to get the house sold. She is lucky that this is a seller's market. Otherwise with the lower commission fee and her minimum effort, the house may stay on the market for a long time.