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Rainmaker
332,244
Buzz Mackintosh
Mackintosh REALTORS - Frederick, MD
“Experience, reliable, leadership”

I explain how agents get paid and Relocation agents sometimes have to pay up to a 48% referral fee. Third party Relo buyers are the best ones out there for certain properties and if you want to make the show list the co-op can be an important factor.

Nov 13, 2015 11:42 PM
Rainmaker
1,022,121
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

I advise on what we are supposed to do ethically and then that not all agents are ethical. Their are those like me that have every buyer under contract and show every listing that is a possibility for their criteria. But, those that don't, will certainly look at commission as a way of prioritizing what they show. I ask the seller to think of the commission as one of the big impact tools in their marketing toolbox. (Or like a big piece of cheese on the trap). Human nature will trump ethics often in this industry, I see it a lot, so seller beware.

Selling agent commissions follow trends too, they are not set in stone. Some markets you have to post 3%, others, 2.5% is the "going rate", so that is a factor too.

Nov 13, 2015 11:25 PM
Rainmaker
4,798,687
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

They are in competition with other similar homes.  An agent will typically pick two or three homes in an area to show their buyers.  Which ones do you think they would pick?

Nov 14, 2015 03:39 AM
Ambassador
1,554,836
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

I'm feeling a theme to your questions? yes, I suggest a larger co-broke

Nov 14, 2015 03:04 AM
Rainmaker
634,116
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

See my answer to your next question, Tony and Suzanne Marriott, Associate Brokers. Some buyers consider it a sign the seller will be problematic. 

Nov 14, 2015 02:44 AM
Rainmaker
1,301,232
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I do not.  If my buyer wants to see a home, I show it.  Only exception is if it is listed by an agency known for illegal/unethical practices.

 

I know of one agent that almost lost a buyer over the commission amount.  She said "I won't show that house becaue they don't pay enough."  The buyer went directly to the agent and almost bought the house.  She didn't care about the agent's commission.  She almost started working with the listing agent as a buyer too!  She was under a buyer's agreement too, which the original agent negated by refusing to show her a home.

 

That agent really screwed up!  Instead of having a smaller piece of the pie, she almost got nothing!

Nov 14, 2015 02:30 AM
Rainmaker
805,907
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Straight up. We work on commission. We are not supposed to concern ourselves with the amount, and it really should be between buyer and their agent, but if your property is in consideration along with others paying a greater split, is there a chance that it will end up on the bottom of the pile?

Nov 14, 2015 01:03 AM
Ambassador
1,527,651
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Yes I fully explain how commission works.  If they still want to go lower I explain how this can and probably will affect the selling of the home.

Nov 14, 2015 12:31 AM
Rainmaker
315,637
Robert Smith
Preview Properties, PC - http://www.RealEstateMich.com - Brighton, MI
SRES, Search for Homes Brighton-Howell-SE Michigan

I fully explain the commission structure. Once they see how many splits there are, most no longer feel that they are being 'gouged' (a word one FSBO used with me on a listing appt!).  The average consumer has no idea of the commission structure - as an industry we have done a lousy job educating them on this point.

Nov 14, 2015 12:16 AM
Rainmaker
816,815
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

I suggest that many agents, like myself, will discuss how they are paid with their buyers. Further explain that many buyers CHOOSE not to see real estate where costs traditionally paid by the seller is passed onto the buyer.

"If you were a buyer," I continue, "would you not agree to exactly the same thing?"

Sellers have explained to me the reason they want to reduce buyer compensation is due to buyers being rebated dollars the seller agreed to pay the buyer agent. I can't blame the seller for this response.  

I wish I know how to specifically address rebate situations.

Nov 13, 2015 11:16 PM
Ambassador
4,700,009
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

If it comes up.

Feb 07, 2019 11:10 PM
Ambassador
3,695,516
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

They may get plenty of showings, but the buyer brokers might secretly hope that their clients hate the place.

Nov 14, 2015 01:17 PM
Rainmaker
5,823,257
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

No. I would show them the properties that would best meet their needs even if the compensation might be lower than desired.

Nov 14, 2015 10:56 AM
Rainmaker
3,985,569
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Yes, on certian types of homes and price range...Easy to explain...Wouldl you change your job location doing the same work for more money...same thing here

Nov 14, 2015 10:34 AM
Rainmaker
558,814
David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

Tony and Suzanne,
I deal with it in passing. Not something to dwell on unless a very expensive listing.

Nov 14, 2015 09:28 AM
Rainmaker
4,866,862
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Tony and Suzanne,

We never had to explain,  It was well known that we would share equally in the commission.  You seem to have something unanswered in this whole scenario given the number of questions you have asked that are similar.  What exactly are you trying to have answered?  A

Nov 14, 2015 08:31 AM