Asking a Realtor to Cut Commission

[DementedReality]

Originally Posted by Winsor_Pilates

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.

Originally Posted by Realtor 1

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.

how about the buyer pays his realtor and the sellers pays their realtor?

the other issus I have and i dont know how to resolve this, is that without a sale, the buying realtor makes nothing.

this creates a conflict of interest because really the buying realtor is motivated to make the sale, making them in essence a selling agent, not a buying agent. i have heard all sorts of justications from realtors on why its a good time to buy this house or other sort of reasons to buy.

what i want is for them to tell why NOT to buy this house, but what purpose does that serve their bank account?

sure it comes down to ethics and integrity, but when it comes to supporting your family, its amazing how far a "motivated" commissioned sales person may push the boundries.

[afc wimbledon]

It is not a greasy move to tell an agent its 4k too expensive and that if it doesn't come down one way or the other you are out provided you havn't already agreed to a price.

There is nothing wrong with letting an agent make a choice as to what they want to do to make a deal if you are the buyer.

[afc wimbledon]

Originally Posted by DementedReality

how about the buyer pays his realtor and the sellers pays their realtor?

the other issus I have and i dont know how to resolve this, is that without a sale, the buying realtor makes nothing.

this creates a conflict of interest because really the buying realtor is motivated to make the sale, making them in essence a selling agent, not a buying agent. i have heard all sorts of justications from realtors on why its a good time to buy this house or other sort of reasons to buy.

what i want is for them to tell why NOT to buy this house, but what purpose does that serve their bank account?

sure it comes down to ethics and integrity, but when it comes to supporting your family, its amazing how far a "motivated" commissioned sales person may push the boundries.

There is no such thing as a buyers agent, they both work for the vendor and every buyer should act accordingly.

[VladtheImpaler]

Originally Posted by afc wimbledon

There is no such thing as a buyers agent, they both work for the vendor and every buyer should act accordingly.

Always follow the money. Who pays them? That's all you need to know.

[Wormius]

This seems to bring up lessons of "Freakonomics". It is probably easier to get the selling agent to talk his client down by $4000, than anything else if everybody wants to get their commissions, house as quickly as possible. Of course the seller doesn't really come out ahead...

[DementedReality]

Originally Posted by afc wimbledon

There is no such thing as a buyers agent, they both work for the vendor and every buyer should act accordingly.

Originally Posted by VladtheImpaler

Always follow the money. Who pays them? That's all you need to know.

i agree, but thats not how the industry frames it and hence my point that the system is flawed and inherintly a conflict of interest.

without a buyer, there is no money to exchange yet the buyer is treated like the teet of the camel.

[afc wimbledon]

Originally Posted by DementedReality

i agree, but thats not how the industry frames it and hence my point that the system is flawed and inherintly a conflict of interest.

without a buyer, there is no money to exchange yet the buyer is treated like the teet of the camel.

You only get treated like the camels tit if you let them, the agents will put presure on whever seems the weakest, the trick is alwyas be prepared to walk away without hesitation, it helps if you don't have a wife involved as well. Never say anything nice about any house you are looking at, in fact slag them off unmercifully both to your agent and to your self, look for the inumarable faults in every house, never linger on the things you like.

[DementedReality]

Originally Posted by afc wimbledon

You only get treated like the camels tit if you let them, the agents will put presure on whever seems the weakest, the trick is alwyas be prepared to walk away without hesitation, it helps if you don't have a wife involved as well. Never say anything nice about any house you are looking at, in fact slag them off unmercifully both to your agent and to your self, look for the inumarable faults in every house, never linger on the things you like.

thanks, i dont need tips, i am merely commenting on the system and the flaws i see in it.

[SebC]

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.

Are they listed on MLS? If they are, a dilligent buyer would probably find them anyways.

[Kjesse]

Originally Posted by Realtor 1

One last point, while 4k is quite high there are several ways to work around it.
- I have had other agents say to me "we are $1000 apart, wanna split it?".
- Use the new MLS rule to your advantage, tell them that you want them to come down to your ceiling but they do not have to disclose that it is conditionally sold and that they can continue advertising the home until you have a firm deal. This will give them the mind set they can possibly get more.
- Put down a larger deposit so they feel more secure you are going to close or reduce the amount on your property inspection walk away figure.
- Is the home vacant? have a quick close on it which will cost the sellers less.

There are so many ways to make a seller feel like they have won and realistically that is how you get the best deal. I have written offers and asked for washers and dryers to be included when my buyer didnt even want them and they were not included in the sale. Why? because as you negotiate you can make them feel like they won a part of the battle by getting them back.

Great post. I'm not so sure what you mean by the "reduce the amount on your property inspection walk away figure", as I haven't seen a contract that has one. I love the idea about using the new MLS rule to conditionally sell but not disclose...but in practice it might work in the vendor's favour, doesn't it give the vendor the ability to say to a new purchaser, "beat it or leave it", and then create a bidding situation? It also makes the purchaser think whether they really want to lock the property up at a particular price. Your thoughts would be welcome.

Regardless of how that rule works out, you are thinking hard for your clients. I might need a realtor soon you'll be in consideration!

EDIT: Also agree with the "flaw in the system" issue, I have seen many others. My profession included.

[pylon]

When I closed on my condo, I was 2k apart, and the agent was double ending the deal. He ate the 2 grand. It was that or nothing.

[Winsor_Pilates]

Originally Posted by pylon

When I closed on my condo, I was 2k apart, and the agent was double ending the deal. He ate the 2 grand. It was that or nothing.

Happens lots on double enders. I recently at 9K to get a double ender together.
A lot to give up, but made it work for everyone.
Unfortunately, buyer didn't make it through subjects anyway.