Everyone has a different business model.  I have not encountered that in my market, but my business model changed a bit this year.  I added an early termination fee, which I was told would never be accepted.  No one has given me any grief about it.  That's what covers my up front marketing fees if they fire me before I sell the home because an agent with a lower commission winked at them at the grocery store.

Nope, I will handle all that as part of my fee which if you don't want to pay it, you don't have to. But you won't get me!

If you can't be the best, be the cheapest and let them nickel dime you to death.

I will never be the cheapest and they just got an 'a-hole surcharge' tacked on.

Here we go again....seller doesn't want to pay a professional for marketing and selling their home because it costs to much. It costs too much if they don't use a professional agent but it will take awhile before they figure it out. As for marketing costs up front, typically not. It's a bit odd that all 3 agents wanted costs upfront.

Eons ago, there was such a thing as a cancellation fee which some agents asked for upfront. I had never done that & there are no upfront costs for hiring me as their agent.

Sounds like discount a-la-cart brokerage with coupon shopper seller

"you can pay for professional services, or you can pay with a much lower sale price, which would you prefer?"

There are many different business models and lots of different clients.  Each appointment doesn't lead to a meeting of the minds. What works for some doesn't necessarily work for all.  Finding that right connection may not be magical but it can be quite nice. 

I haven't personally but, do know that others do.

Per the Sherman Antitrust Act, to each his own, I suppose!

Jennifer,

The only time I have seen someone wanting costs up front was for a gigantic ultra luxurious horse ranch. It had its own lake, its own riding rink for English style, and on and on. The horse's stall were showpieces of matched woods and brass plates for their names.  The property was listed at close to 200 million.  The seller wanted a batch of marketing done, and was willing to advance the cost and be refunded at the close of escrow...

I've heard of that, but I've not done it. 

No I have not. There are a lot of schlock houses operating as Real Estate Agencies & trying to reinvent the wheel. They promise to list you for less til they get in front of you & whip out the ala carte menu.

There's a certain kind of seller that seeks out these scab companies. In the end they lose & we win when we get their expired listing. 

Usually with an unrealistic Seller ! If we’re gonna go on a Wild Goose Chase , it’ll have to be on their dime !

Silly is as silly does....

I don't ask for marketing money up front. I figure that's covered in commission. If they offer it for specialty marketing, I prefer to just have them pay for it. I did have one seller that wanted ad on front page of Loudoun Times Mirror, and ads in several real estate magazines. Those ads are expensive, and really aren't needed for most listings.

It is a trend that you need to get into your conversations with clients.  fight for your fee's, negotiate your worth with these extras.  Work with me upfront client and I will fight for you on the backside.  

no, I have never asked for upfront money for marketing.... I have never heard of that happening to anyone in my area.... word would spread on that one1!!! 

Your state statutes could be involved with an upfront fee. Some require setting up a special account with onerous reporting requirements. Unless the marketing plan is very expensive and the return yo you is large, forget it! 

That's bizarre and wouldn't fly in our market. We absorb all marketing expenses whether the home sells or not.

No.  How do they expect to get paid if they do sell the home?

I haven't but from your post with this seller - it sounds like it may be a good idea - just kidding......kind of.

This seller needs an education on where commission dollars go and how hiring an agent is the best thing for her to do to protect her equity and make sure she ends up with the best net in the end with the least risk.

Upfront? 

I guess, they are not sure, the property will be sold soon.

Buyers and sellers, I believe, are smart enough to select the services they need.

It is apparent many real estate agents believe buyers and sellers are not so smart.

And we wonder why...........

No, that is not part of my conversation. I cover the marketing costs, but seller does cover staging if done.

No I have not.  Hope you got the listing

Have not asked up front for fees but if someone wants an early out of the listing contract, my marketing and advertising fees will be paid or we just wait until it sells or expires. Tit for tat!

Nope.

No!

We present a value proposition that includes that we only get paid for results. Most sellers - and members of the general public - do not understand the financial risk that we take when we agree to represent seller. We do not receive a retainer like an attorney nor do we get paid by the hour. We spend money on staging, professional photography, flyers, promotion, etc. and only get paid if the house sells.

Free staging, 4-8 hours of free fixes. Free marketing and have potential buyers lined up often is a tie breaker. 

I have not.  There are risks we take in this business. We can mitigate that risk by working with the right people. - meaning those that get what we do, appreciate the work, and are happy to pay us.  

I'm in this situation right now and as I climbed a ladder in his basement stopped and said "Not for nothing but THIS is the value of hiring me...".   

Won't happen as long as I'm in charge.  

Never, but do add a clause in the listing agreement - if the Seller terminates listing prior to end of listing, Seller will pay $500 to (me) for marketing and Seller will be released from contract immediately.

I ask to pay for professional pictures and virtual tour. 

Learned that lesson long time ago. And no exceptions.