Asking a Realtor to Cut Commission

[Red]

Originally Posted by Cowboy89

I personally understand the idea of trying to get a deal done at the stated price and there certainly shouldn't be any sacredness to a Realtor's Comission in the process either. The problem everyone has is rather the attitude of the OP.

There's a huge difference between the following attitudes:

"My price is X and this latest offer price is higher than X, can you help me get it for X, and if not I'm planning on walking because I don't want to spend any more." This places the onus on the Realtor to make the deal and pursue any and all options including their own commission. It's also a hell of a lot more respectful than:

"Can you take it on the chin and eat half of your comission because ultimately I don't respect you or what you bring to this process and I view you as a hinderence to me getting what I want?"

The first one's also more likely to achieve the price desired because ultimately the second method is a real good demotivator for the Realtor to care about helping the OP out. Just ask Pylon about who gets the best deals at car dealerships, in the end it's not the guy who insists on bending over the salesman.

To be honest I ignored his emotional remarks about how much he thinks is fair etc.
It's quite irrelevant to the original question.

[Cowboy89]

Originally Posted by Red

To be honest I ignored his emotional remarks about how much he thinks is fair etc.
It's quite irrelevant to the original question.

No it is totally relevent since his question was "How about I ask the Realtor to cut their commission by 4K?" when his goal is really only about getting the house for his price. Why must the only way of pursuing said goal be to whip it out and beat down the Realtor's comission?

By jumping to the conclusion that the only way to make this go around is beat down the realtor tells me all I need to know about what he thinks about Realtors. And yeah emotion plays a hell of a lot in Real Estate. The seller's are selling something that probably amounts to all of their net worth and the buyer is probably levering up their entire net worth to buy it. The OP's own emotion is spilling into it when he's tunnel visioned on grinding down his own Realtor.

Hence why the best advice was provided by our own CP Realtor, which was to essentially to manipulate the emotions on the selling side by offering up non-monetary clauses into getting the price that was actually desired by the buyer.

[Red]

Originally Posted by Cowboy89

No it is totally relevent since his question was "How about I ask the Realtor to cut their commission by 4K?" when his goal is really only about getting the house for his price. Why must the only way of pursuing said goal be to whip it out and beat down the Realtor's comission?

By jumping to the conclusion that the only way to make this go around is beat down the realtor tells me all I need to know about what he thinks about Realtors. And yeah emotion plays a hell of a lot in Real Estate. The seller's are selling something that probably amounts to all of their net worth and the buyer is probably levering up their entire net worth to buy it. The OP's own emotion is spilling into it when he's tunnel visioned on grinding down his own Realtor.

Hence why the best advice was provided by our own CP Realtor, which was to essentially to manipulate the emotions on the selling side by offering up non-monetary clauses into getting the price that was actually desired by the buyer.

You tell the realtor to get the price down to your desired amount. The realtor has choices:
Convince seller to lower price (work harder and/or better)
Lower comission (work for less)
Walk away from the deal

This is where you seperate realtors from hacks.

[Clarkey]

Should have gone with 2% Realty, they would have been writing you a cheque for 1% of the purchase price.

[Knut]

Originally Posted by VladtheImpaler

Just tell the agent "$X is my bottom line - talk to the seller's agent and see what you can do to bridge the gap. I cannot go any higher."

We did this before and the seller actually walked away when we are only $5000 apart in price. We had an absolute maximum in mind (due to having about $15,000 in immediate upgrades to the place) and stood our ground. So did the seller. Both realtors were willing to work with the commision and we budged half way. The Seller did not want to move at all.

Glad it fell through though as we got a bigger, better place that did not need upgrades right across the street a few months later.

[HammeR_]

Sorry to disapoint many of you but I was able to get this deal done without having to ask my realtor to cut.

Thanks for the valuable input some of you have provided.

Originally Posted by Cowboy89

No it is totally relevent since his question was "How about I ask the Realtor to cut their commission by 4K?" when his goal is really only about getting the house for his price. Why must the only way of pursuing said goal be to whip it out and beat down the Realtor's comission?

By jumping to the conclusion that the only way to make this go around is beat down the realtor tells me all I need to know about what he thinks about Realtors. And yeah emotion plays a hell of a lot in Real Estate. The seller's are selling something that probably amounts to all of their net worth and the buyer is probably levering up their entire net worth to buy it. The OP's own emotion is spilling into it when he's tunnel visioned on grinding down his own Realtor.

Hence why the best advice was provided by our own CP Realtor, which was to essentially to manipulate the emotions on the selling side by offering up non-monetary clauses into getting the price that was actually desired by the buyer.

Speaking of jumping to conclusions, you have made many of your own. You realise there is a pretty big difference between the Intraweb and real life right? Just because a question was possed on an online form in a certain maner has nothing to do with the real life negotiation. Read to OP again, this was tossed out as an idea, not a, "Hey guys guess what I did! I told my realtor to get bent and take half a commission"


BTW, No there was no contract between myself or my realtor. This was an informal meeting that led to me purchasing a house in less than a week and the realtor making a full commssion. Pretty greasey eh?!

[Reaper]

Congratulations on getting what you want without having to resort to a french shower bag move.

[Travis Munroe]

Originally Posted by Clarkey

Should have gone with 2% Realty, they would have been writing you a cheque for 1% of the purchase price.

I wonder what 2% Realty's list/sell rate is vs a major brokerage.

[Travis Munroe]

Originally Posted by HammeR_

Sorry to disapoint many of you but I was able to get this deal done without having to ask my realtor to cut.

Thanks for the valuable input some of you have provided.






Speaking of jumping to conclusions, you have made many of your own. You realise there is a pretty big difference between the Intraweb and real life right? Just because a question was possed on an online form in a certain maner has nothing to do with the real life negotiation. Read to OP again, this was tossed out as an idea, not a, "Hey guys guess what I did! I told my realtor to get bent and take half a commission"


BTW, No there was no contract between myself or my realtor. This was an informal meeting that led to me purchasing a house in less than a week and the realtor making a full commssion. Pretty greasey eh?!

The only greasy move was not calling a CP paid sponsor for help

[Cowboy89]

Congrats on getting your price!

[Red]

Originally Posted by Realtor 1

I wonder what 2% Realty's list/sell rate is vs a major brokerage.

They would have to deal exclusively with their own agents. No sane ReMax, C21 etc agent would take their clients to see these properties.

[photon]

Originally Posted by HammeR_

Sorry to disapoint many of you but I was able to get this deal done without having to ask my realtor to cut.

When it's all done ask her anyway to see how she would have reacted, I'm still curious.

EDIT: I mean ask her in a "if they wouldn't have gone for the price here's what I was considering" point of view.

[flamesaresmokin]

Originally Posted by fotze

You should talk about the commission prior to looking at houses. Pretty greasy to do it ag that point.

I've seen a lot of "11th hour" greasy moves done by realtor's before that don't even compare to this. Don't see the harm in turning the tables. As some have said, worst case scenario is the realtor says no. There is no way they walk away from a potential sale over a suggestion like this.

All in all if you're stuck on as little as 4K i'm sure the seller doesn't want to lose out for a number that small either. Why not just counter again and cut your loses in the middle?

[DementedReality]

Originally Posted by Red

They would have to deal exclusively with their own agents. No sane ReMax, C21 etc agent would take their clients to see these properties.

again, another flaw in the system ..

1) i understand why the buying realtor doesnt like this listings, they make less
2) but i feel they are morally obligated to not exclude showing me certain properties becuase they dont like what the selling agent is offering as a commission!

i hired them to help me buy a house meeting certain criteria, but they get to pick and choose which ones i actually get to see?

thats the flaw in the system.

[Knut]

Originally Posted by flamesaresmokin

I've seen a lot of "11th hour" greasy moves done by realtor's before that don't even compare to this. Don't see the harm in turning the tables. As some have said, worst case scenario is the realtor says no. There is no way they walk away from a potential sale over a suggestion like this.

All in all if you're stuck on as little as 4K i'm sure the seller doesn't want to lose out for a number that small either. Why not just counter again and cut your loses in the middle?

So all realtors should suffer because you have dealt with a few poor ones ? I have had a bad realtor in the past (represented both seller and buyer and had two intersted buying clients with competing bids...should have passed us along to the brokerage).

I once had a bad experience with a waiter, therefore I never tip. Rediculous.

[Red]

Originally Posted by photon

When it's all done ask her anyway to see how she would have reacted, I'm still curious.

EDIT: I mean ask her in a "if they wouldn't have gone for the price here's what I was considering" point of view.

Curious. Are you looking for her reaction specifically or generally want to know if they have come accross these requests?

[Red]

Originally Posted by DementedReality

again, another flaw in the system ..

1) i understand why the buying realtor doesnt like this listings, they make less
2) but i feel they are morally obligated to not exclude showing me certain properties becuase they dont like what the selling agent is offering as a commission!

i hired them to help me buy a house meeting certain criteria, but they get to pick and choose which ones i actually get to see?

thats the flaw in the system.

It's not a flaw with the system. It's a flaw with human nature. We are greedy.

[Winsor_Pilates]

Originally Posted by DementedReality

again, another flaw in the system ..

1) i understand why the buying realtor doesnt like this listings, they make less
2) but i feel they are morally obligated to not exclude showing me certain properties becuase they dont like what the selling agent is offering as a commission!

i hired them to help me buy a house meeting certain criteria, but they get to pick and choose which ones i actually get to see?

thats the flaw in the system.

I agree, and as much as it sucks I do show my buyers discount listings if they're amongst the best options.
But, I think the only way to fix this is having standard commissions. Most people don't like that idea either.

Congrats to the OP for getting the deal done. Hope you love your new home.

[Travis Munroe]

Originally Posted by DementedReality

again, another flaw in the system ..

1) i understand why the buying realtor doesnt like this listings, they make less
2) but i feel they are morally obligated to not exclude showing me certain properties becuase they dont like what the selling agent is offering as a commission!

i hired them to help me buy a house meeting certain criteria, but they get to pick and choose which ones i actually get to see?

thats the flaw in the system.

I agree that this is the flaw in the system however, IMO, it is these discount companies that have done so.
Compensation being offered to a buyers realtor should be the same % across the board. Whether your list agent gives you 1% realty, full commissions or a flat fee is up to them.
I recently represented a couple buyers both buying through discount brokerages. On these specific properties, the seller was offering full pop to buyers agents and the list agent would have taken the discount. This is how it should be.
If a client came to me and was selling their home and buying another home I have no problem discussing some options with them but one thing I will never do is offer less to the buyers agent.

[photon]

Originally Posted by Red

Curious. Are you looking for her reaction specifically or generally want to know if they have come accross these requests?

Hers specifically, I know these kinds of requests happen in general, and I had a realtor volunteer to kick something in to get the deal done.

Just purely curious, no other reason.