Asking a Realtor to Cut Commission

[HammeR_]

I suppose this could go in the real estate thread but due to the timing of my situation I thought I could get more responses here.

I am currently in a bid / counter-bid situation with a seller. We have gone back and forth 4 times in the last 3 hours and currently sit $4,000 apart.

Not much right? Well I have already come up $1,000 from my ceiling and do not want to go any higher, on the other hand I dont want this deal to die over 4k.

I have been working with my realtor for less than a week and have gone through less than 10 houses together. The way I see it is this is the easiest commission she will ever make.

How about asking her to cut her commission by 4k and eat the difference?

Thoughs?!?!?

Keep in mind this is my first house and we are talking less than $400k sale price here.

[BlackArcher101]

LOL... wut?

You want your agent to cover the difference to make the deal?

[Mtt48]

Ask away. Worst case scenario the realtor says no.

[Daradon]

Originally Posted by HammeR_

I suppose this could go in the real estate thread but due to the timing of my situation I thought I could get more responses here.

I am currently in a bid / counter-bid situation with a seller. We have gone back and forth 4 times in the last 3 hours and currently sit $4,000 apart.

Not much right? Well I have already come up $1,000 from my ceiling and do not want to go any higher, on the other hand I dont want this deal to die over 4k.

I have been working with my realtor for less than a week and have gone through less than 10 houses together. The way I see it is this is the easiest commission she will ever make.

How about asking her to cut her commission by 4k and eat the difference?

Thoughs?!?!?

Keep in mind this is my first house and we are talking less than $400k sale price here.

I don't think this will work. Wouldn't she just get the full commission elsewhere?

I don't know much about the subject. But if it's her listing, and there are multiple offers, why would she cut her commission?

If the sale price is bout 400K, 4k is just a percent of that. Might have to suck it up if you really want the deal.

But I'll let the Realtors and lawyers answer before I make a fool of myself.

[Winsor_Pilates]

Lol, you're asking CP about it during the negotiation?

Should have discussed commissions etc with the agent before getting to this point, had an understanding of what she is set to likely make, who pays her, and if she considers cutting commissions to bridge the gap when negotiations get close.

Also, to counter your point about only working with her for a week. Would you have been prepared to pay her more than her usual commission if your search went on for a couple of months?

Also, it depends where you're at in pricing vs market value. Has she already got it down to a great price, and you're just wanting 4K more off "cause you want it"? or is it 4K over what should be a good market price?

Either way, this is a discussion you should be having with her, not CP.

Sounds like she's found you a place you like and got you within 4K of getting it. So far, seems she has done her job, but can't say without knowing all that details.

[HammeR_]

she is the buying realtor working for me. The selling realtor and buying realtor split the commission 50/50 and is based on a percentage of the sale price. If this deal dies, she will have to continue to work with me and won't get paid until I buy something. Obviously if another of her clients buys a house she will make money, but I am also looking at building, in that case she wont make a dime off me.

[HammeR_]

Keep in mind there is probably around ~10 hours of her time invested in helping me for roughly 8K.... that's $800 an hour. Not too shabby

[jar_e]

Originally Posted by HammeR_

she is the buying realtor working for me. The selling realtor and buying realtor split the commission 50/50 and is based on a percentage of the sale price. If this deal dies, she will have to continue to work with me and won't get paid until I buy something. Obviously if another of her clients buys a house she will make money, but I am also looking at building, in that case she wont make a dime off me.

If she agrees with your thinking, you'll be golden. i highly doubt she agrees with you though.

[Winsor_Pilates]

Originally Posted by Daradon

I don't think this will work. Wouldn't she just get the full commission elsewhere?

I don't know much about the subject. But if it's her listing, and there are multiple offers, why would she cut her commission?

If the sale price is bout 400K, 4k is just a percent of that. Might have to suck it up if you really want the deal.

But I'll let the Realtors and lawyers answer before I make a fool of myself.

My understanding from reading the post is that she's the OP's buyers agent. Seller has a different agent?

If I'm correct, the OP doesn't directly pay the agent anyway so he's be looking for the agent to give him 4K of the commission they are going to get from the sellers.

If the agent is representing both the seller and buyer it's a different story.

[HammeR_]

she is the buying agent, selling agent is different.

I agree that it's a little shady to ask her to cut and I am hesitant to do so, just interested in seeing how motivated she is to get this done.

[BlackArcher101]

You say you don't want this deal to die over $4k... so why put it all on her by seeing "how motivated" she is? Extremely greasy. The motivation is all on you. Her motivation is pretty apparent by working the last 3 hours bidding/counter-bidding.

[Winsor_Pilates]

How motivated are you to buy this place?
I'm shocked your thoughts at this point are more focused on her motivation and willingness to eat 4K, then whether you'd willing the extra $15 a month for this place.

[Jiggy_12]

She should be insulted at this point to be asked to waive a part of her commission. Her money vs yours, why is yours more valuable?

[jeffh]

If you do decide to build, it is probably a good idea to keep your realtor around, as he/she can still work for you to get a better deal(add-on's & upgrades) on the new place. The builder/seller pays his/her commission too, and it won't be any sweat off your back, plus you'll have another person in your corner.

[flylock shox]

I think you should just ask her.

I'm very curious to hear what happens.

[MelBridgeman]

lol suck it up. you don't want the deal to die over 4K? than take the deal.

the realtor may not sell a house for 4 months so..that 8K turns into 5 bucks an hour

[V]

Originally Posted by HammeR_

Keep in mind there is probably around ~10 hours of her time invested in helping me for roughly 8K.... that's $800 an hour. Not too shabby

Yeah, you probably should've had a talk earlier in the process over how much you believe her time is worth. She has the risk of you walking at any time with her getting nothing, or you might take a longer time than expected to actually find a place, meaning she gets very little per hour.

Go ahead and ask, but it's sleazy as all hell.

[HammeR_]

Originally Posted by MelBridgeman

lol suck it up. you don't want the deal to die over 4K? than take the deal.

the realtor may not sell a house for 4 months so..that 8K turns into 5 bucks an hour

why should I be paying for the next 4 months for her? As I said she has worked 10-15 hours max for me, I dont need her for the next 4 months... not my problem.

4k doesnt seem like much I know, but if your streching already 4k is a big deal.


Jeeze CP I thought your negotiating skills would be a little better. No one like cutthroat?

[V]

Actually, thinking about it now, if you really want to sleaze it up, fire your realtor and tell the seller that you'll take the house for 4k less, but the seller realtor won't have to split the commission.

If we're laying out all the options here.

[HammeR_]

Originally Posted by V

Actually, thinking about it now, if you really want to sleaze it up, fire your realtor and tell the seller that you'll take the house for 4k less, but the seller realtor won't have to split the commission.

If we're laying out all the options here.

I dont think you can do that.... dont you need to be represented to complete an MLS sale?