Wow very interesting discussion, wish I was on here back in July when the thread started. I am assuming since it's December now that the posts occuring now are most likely for VIP points or a hope to get a thumbs up lol

Cindi, I would say at this point in time there are desperate people, buyers and agents. As in all things you never get some thing for nothing. I say let the buyers and agents who want to do business that way work it between themselves. If they come back to me in a mess I let them know nothing has changed, it will still cost them for my services. I as politely as possible let the buyer know that I am worth their money to me, maybe not to them, but to me. I am worth your commission. If I am not worth it to you that is OK. I realize I will not get every buyer.

Or, you could look at it as extra business.

Back in the day, by which I mean, the last millennium, you'd scarcely ever hear of an agent getting a call like that. Once in a while, a prospective seller or past client might have a tenant or friend that wanted to buy the house, and they'd call you in to facilitate, but it was remarkable when it happened.

Buyers who "found their own home," out there in plain sight as it was with a big "FOR SALE" sign in front of it, usually dealt with the seller or their agent, and that was that.

Now, more of them seem to want to some of our help, which should be encouraging.

At least, that's how I take it.

I have had several occasions where a buyer found a home and asked me to write the contract and negotiate it.
Never have they asked for any part of my commission. I guess I am lucky, or possibly they know I am a professional that will negotiate the best deal possible for them and get them to settlement smoothly, legally and compliant. I do feel "guilty" for making all that money for little work, but as one colleague said to me...this is "pay back" for all those clients that ran me ragged for months on end only to decide not to buy at all!

Funny you should ask this question...

Just this morning I was stuck in the checkout line behind this guy at the Wal Mart.

He wanted to buy $1,875 in Gift Cards, and the store only had $5 cards.

He was pretty upset, because he was late for the biggest signing of this life.

Oh? "you are a Loan officer"? I asked.

"I sure am" He answered. "and I am about to make 31/2 points on this loan, because of these Gift cards".

I agree with you 100%..............You Get What You Pay For..........

Thanks for the kind words Mim!

to Debbie Rose--WELL SAID.
Thanks for a thoughtful and well stated response.
What you hear in pn line forums is not necessarily representative of full time, professoinal real estate agents.
We are too busy doing business to spend TOO much time here.:)
Have a great day- --and go help someone find a property!
Mim

I don't think anyone said that the internet was putting agents out of business, per se (if they did, I missed it)............but it certainly has changed the way we do business and opened more options for the consurmer.. As I mentioned in my earlier post, we used to protect the address of the home until someone called in on the ad to find out where the home was - - now we make that information readily available with the click of the mouse. Consumers can see any and all new listings either through the MLS online site or through Realtor.com......all options that weren't there some years ago. So, we have had to adapt to those changes.

We will continue to adapt just like any other business.

I think we all agree that selling a home isn't like putting something up for sale on Ebay - there's much more to it than just seeing photos and a virtual tour. I had a client call me in regard to a home he saw online - he was excited about seeing it until I told him the train was 2 blocks away, and he would definitely hear it. He couldn't determine that from the internet. Another client loved the online photos of a home, until I told her the rooms she didn't see needed a total overhaul - I preview all homes - I am my client's eyes and ears in the market. Our services and ability to walk a client through the entire home buying or selling process cannot be duplicated on a website simply by reading about it, so that personal touch will always be a significant part of the business. Buying or selling a home is often about emotions as much as it is about the price and terms.

The basic, full service business model - ie- a commission based - model may change over time - who knows. Only time will tell. There already are other models such as flat fee services for those who feel they fulfill their needs. It's about choice. Truthfully, given the choice, I'd prefer to get a salary with an override or bonus and a few benefits thrown in. This commission-based business can cause you to have a lot of sleepless nights ! I just was informed yesterday that my health insurance will go up 44% as of Sept 1 (from $458 to $661 per month!). Yup, a salary and benefits sure sound good to me - today, anyway!!!

But, and getting back to the original question.........At the risk of sounding like a turncoat to some - If an agent wants to discount their services, who are we, or who is anyone to tell them they can't or to chastise them for doing so? We're not some mob marching around with torches lit. We may feel "our" business model is the best - and I agree with that sentiment. But.... It's called free enterprise. We are independent contractors. I am not worried about how someone else is conducting their business - I am only concerned that I provide the best service posible for my clients.

As agents also know, buying or selling a home is more than just getting the contract signed - that's when the work often starts. This purchase is filled with emotion and uncertainty...it involves buyer's and seller's remorse and jitters - so far the internet hasn't touched on those aspects!

When the internet can reassure a client that they are doing the right thing, or clarify the process or help get someone over their emotional hurdle, and hold their hand - when it can "reach out and touch someone" - that's when I will start to worry!

Until then, I have to go and show a house now.............have a good day all!

Christy,

I really don't care to get into one of these long off the topic debates that drags on for weeks, where everyone gets mad and the posts get longer and longer as we try to pick apart what eachother has said.

My point was simple and I thought well supported. The internet isn't putting real estate agents out of business in droves and it has had very little effect on the average real estate commission. We can argue those points until we are blue in the face but neither will be able to "prove" the point. I stand by my statements as such.

Cameron Piper

Thanks Christy!
So......If you ever decide to move out this way - give me a call!

Cameron,

Yes, the internet has been around for some time. However, just recently buyers and sellers gained access to MLS data that only Realtors had access to. I can go on some sites with advanced search options and see just about everything I want to know as a buyer, set up my own alerts as soon as a house comes on the market that meets my search, and lots more. The websites that put this information at my fingertips made it unnecessary for me to rely on an agent to do that part of the work. Part of that 3% commission you earn representing me used to be spent doing that research and finding those houses for me. If I'm able and willing to do my own research, why wouldn't I expect some of that savings to be passed onto me? I saved you time by filtering out all the houses that aren't interesting to me instead of wasting a whole day carting me around in your car.

Look how far the online real estate experience has come for a buyer in just the past two years. If you think the next few years won't change even more, you might be in for a big surprise.

Debbie, I like how you think and how you recognize clients expectations instead of ignore them - now if I were in NJ, I would hire you as my agent!

I agree completely with you Cindi. Many buyers really don't understand all the aspects of buying a home that a good realtor helps them with and advises them on. If that buyer found a loan officer that was licensed and do this for her, I wish her luck. Most loan officers really don't have a clue to everything a full-service agent does.

In these hard times, I'm seeing a lot of people discard their ethics. It's not a good thing to do.

I disagree. Every consumer should entertain options, especially when it comes to saving money.

The downside is that the consumer usually doesn't get a clear answer as to what services they are entitled to be carried out with the fees being charged. OR they misunderstand (for some reason or other).

I say, just make sure everything is on paper. You cannot do anything to retaliate unless it is in writing. Verbal/hearsay does not count.

We live in free-enterprise, free-will state.

I reiterate, YOU GET WHAT YOU PAY FOR.

Our profession does not need buyers like this. And as professionals, we shouldn't even entertain the thought of saying yes.

True story. During the Sixties and Seventies my Father and I ran a sheetmetal company. A man came in and asked for the price of havng a furnace installed. He did not like the price and asked our hourly wage. When he was told the wage he felt it was to high but it was two thirds of what he was making. He wanted high dollar for his work and us to work for nothing. My Father told him to get out before he threw him out. Said that to say this. If you can do every thing but fill out the contract, learn to that and leave me out of it. My time, energy and professionalism is worth every dollar I earn. You want your full wage and I want mine. I am worth your money. You want a hirling, you do not want me.

Perhaps you agents in states other than Texas could do well to adopt some new business practices. For those of you who suggest that discounting fees is somehow unethical, you would probably cut off your nose to spite your face. I offer services at a competitve rate, and I am willing to negotiate my fee if there is a compelling argument, but I do not discount my services. I have zero complaints with the Texas Real Estate Commission, the local board, the better busines bureau, etc.

Arizona- It is required that the agent do more than simply write a contract, in fact doing what is described for the buyer would, in Arizona, constitute practice of law without a license. ARTICLE XXVI ..Section § 1 OF THE ARIZONA STATE CONSTITUTION (Powers of a real estate Broker or salesperson.). Any person holding a valid license as a real estate Broker or a real estate salesperson regularly issued by the ADRE, when acting in such capacity as a real estate Broker or a real estate salesperson for the parties, or agent for one of the parties to a sale, exchange, or trade, or the renting and leasing of property, shall have the right to draft or fill out and complete, without charge, any and all instruments incident thereto including, but not limited to, preliminary purchase agreements, and earnest money receipts, deeds, mortgages, leases, assignments, releases, contracts for sale or realty, and bills of sale

1. It is apparent that you have the right to fill out and/or complete documents only if such documents are incidental to a transaction where the agent is acting on behalf of at least one of the parties.
2. The language also limits the agent’s right to practice law where the services are performed “WITHOUT CHARGE”.

This makes the Arizona real estate licensee a “defacto attorney” defined as:

de facto
adj. Latin for "in fact." Often used in place of "actual" to show that the court will treat as a fact authority being exercised or an entity acting as if it had authority, even though the legal requirements have not been met.

Diane - you started my day with a smile - thanks! ( ok, I must admit I got an "A" in spelling in 4th grade) ! haha

Have a great day!
Debbie

Cindi,

The answer to your question lies in the perception that the agents, buyers and sellers who are taking part in these types of transactions have of real estate. If you feel that all an agent does is write up a 8-10 contract and then collect the thousands, you are happy to be a part of these transactions. My and your clients understand the difference every day.

I do find it comical that people still continue to talk about how the internet will destroy the "legacy" commission structure. Look folks, the internet is here and has been here for over 4 decades, commercially it has been available for nearly two decades. Can we all agree that if the internet was going to put the real estate dinosaurs our of business it would have happened by now.

In the end there are two reasons that it hasn't happened. First, the vast majority of people don't purchase or sell real estate often enough to feel comfortable to trust the internet with that much money. Second, real estate and the transactions that surround it are not commodities, not a single one is the same. Buying a flight to Mexico is easy to do online and the end result is almost always the same - a flight to mexico. Buying or selling a house online will never take place because it can't be commoditized.

Buying insurance online is an interesting example as well. You need only ask my neighbor who recently switched back to a bricks and mortar insurance agency after the policy they had purchased (and were saving so much money with) didn't cover some damage to their home. Sounds a lot like buying from an agent who is offering a 75% discount on their services.

Cameron Piper

I agree with Debbie Rose. The answer is thoughtful and makes perfect sense, and she also knows how to spell prerogative.

Christy, I agree with you in many respects.

I already responded to this thread at the beginning, but I saw your post, and wanted to comment further. This response may be a bit off the original question, but I think it goes to the changing world we live in as Realtors.
We already see how the internet has affected, not only real estate, but many other industries . Christy, your example of the auto insurance industry was a good one.

I also agree that we all have to adapt to a changing world. My company was one of the first in our area to start putting addresses for the public to see on our listings, and on Realtor.com. Honestly, at first, I was shocked - thinking.... well, now why will anyone call the office or contact the listing agent to see where the home is located if they already know? But, life went on, and we still get calls - even better ones than before. By the time I get a call from Realtor.com, for example, the buyer has already viewed the photos and virtual tour, mapped the home, and knows all about the area and schools, etc. Those showings are usually very good ones.

My company has also emphasized that consumers want information, and they want it fast. We supply that, and our new company website supports that idea. Fulfilling the consumer's needs is crucial to staying productive and ahead of the curve.

Perhaps down the road there will be more options regarding how our compensation is decided. We can't just cling to how we did things without being open to new possibilities.

Who would have ever thought that print ads would become the dinosaurs of today - but they have. Marketing dollars now go to the internet. I remember when I first started out in the business (1985), and up to the last few years, the most frequently asked question (by a seller) was how often, and in what newspapers their home would be advertised. Not so anymore....... Well, ok, so there are a few oldtimers who still ask that question, but not too many!!

Status quo makes us all feel safe, but change is inevitable.

The buyer that wanted 75% of the commission is way out of line. First of all, in Calif. it is against the law to give the non agents kickbacks. Second, we as agents work very hard for our commission, and are legally responsible for the escrow. Shame on anyone that would do that. I am a good agent and worth every penny I get, which is alot less these days. Those of us working for Century 21, Remax and etc have to turn over up to 50% to the broker and company, then another 75% to the buyer, that leaves pennies for the agent. If the buyer wants to have control over the process then I say by from a For Sale By Owner, and do it yourself.
Lynda
Agent in Calif

I did read all comments that agent posted here about this situation, and I think if you agents ready to pay to the buyer 75% of your commisiion you should not be in this business because you will not make any money. You should ask then your buyer to split your fees like MLS accsess , E&O insurance and so on, not ure about other states, but in NJ every year just to have license active cost me about $2000(fees only) not including advertising ,marketing and listing fees

I've been in the real estate business as a buyer/seller with good and bad experiences, and I can understand the value of having an agent to protect me as the buyer or seller in my transaction. There are some things that I don't want to worry about and some things that I just didn't know about.

However, I think Realtors and agents who are too worried about protecting the legacy commission structure and think that the only kind of agent a client wants or needs is a full service agent is sticking their head in the sand. Gen X and Millennials want OPTIONS people! If they ask for you to write a contract and that's it, why would you assume that they automatically want or need you to fully represent them? If it is not illegal in the state to offer a buyer rebate and to waive duties, then it seems very old fashioned to assume that the only service you can offer as a real estate agent is to hold our hand and assume we know nothing about the process. I like being an educated buyer, and I like knowing and controlling the process, and I like transparency. I spend a lot of my time researching and doing the leg work, and I want to be rewarded for that. Or at least have the option to save some money for doing the leg work myself. I praise brokers and agents who recognize this and give us buyers options if done in a respectable and transparent way.

Look at the business of auto insurance. Who ever thought that people would ever be able to go purchase their own auto insurance with the right kind of coverage without ever speaking to someone who is a professional insurance agent. Agents who didn't believe that people would have a good experience and would eventually come back to the brick insurance buildings instead of buying online to save a few bucks are out of business now. They had to adjust to the changing needs of their clients and the change in relationship between agent and client with the evolution of the internet and easy access to information that used to be only available to agents. I think the same thing will eventually happen to real estate agents that aren't willing to adjust to meet the changing clients needs and expectations.

For all those agents that are willing to give up 75% of their fee back to the buyer, try this: the next time you have an illness do a little research on the internet...go to WebMD, etc. Then when the doctor sees you, prescribes something that will help you or performs a surgery on you, ask him or her to rebate you 75% of their fee. After all, you did a lot of research to find out what ails you...and heck, you even came into THEIR office saving them a lot of time.

Heather,

I understood the question pefectly: As for the "gift card" request, as I understand it, the buyer does not have to pay income taxes. If they receive cash, then the broker would have to 1099 them. At any rate, there is nothing illegal about a "kickback", "rebate", "commission reduction", whatever you wish to call it. A company called "Inest" has been doing this for years. I am not convinced that there is anything imoral or unethical about the practice. I am sure that the laws vary from state to state. So the next time a buyer calls withy that request, send em to Texas, and have the contact me!!!!

WOW, this really stirred up a can of worms! I'm surprised at the number of agents that do not understand buyer rebates (not kickbacks) or negotiable commissions. The world is changing, folks. The days of guarding the multiple listing book and non-negotiable commissions are over.

In the state of Arizona it is called a kick back. Lenders do not take kindly to being defrauded and can take legal action. Any agent that would jeopardize their license for a potential client needs to re-evaluate their thinking. I understand that negotiating your commission may be an option however let's not forget this is a buyer and the commission is "usually" paid by the seller. When I am working with a client I give them the attention and service that I would like to receive. I think that as a professional I am well worth my full commission. The agents that do accept this kind of deal makes it difficult on all of us and promotes the stigma that we don't work hard for our commission. Good for you Cindi for not accepting the deal!!

There is a saying we love " you pay peanuts, you get monkeys" I'd love to see how the agent (because obviously you'd never get a REALTOR to agree to something like this) would answer the question "Describe how you fullfilled your Fiduciary Duty to this client"...... OOPS! In a court of law in California or an Arbritor's office, this so-called agent would be dead in the water and the Department of Real Estate would have what was left of them. An agent who doesn't do the kind of work it takes to safeguard thier client from getting into trouble in a transaction is an agent who doesn't deserve even the 25% the buyer was offering! There is no way that one can be professional, ethical, a good negotiator and knowledgeable about the business we are in, spend all that time & energy on a transaction AND work for peanuts! Oh yeah, I guess the monkeys can!

I have experienced a licensed broker/owner doing a similar thing. Writing an offer for $350 "service fee". No representation just write up the contract and send the seller out to the Title company. How can a professional justify their worth by under cutting the very service they provide? I wonder as a professional, did they have the seller sign a document that advises them they are not getting professional advice and assistance in doing so they may be unprepared to resolve contract conflicts or other issues? Can you imagine a Surgeon giving us a knife and thread and telling us to "have at it", as there are many documentaries on TV showing detailed surgical procedures; and even detail internet sites on how to do sutures etc. Wow I think these folks need to put up a "lemonade" stand and really sell what they are capabale of doing. Can you imagine answering the opposing counsel on a witness stand about your "assistance" and your duties under our Code of Ethics?

In New Jersy it is currently against the law to offer rebates, refunds or any other kind of a "kick back" to either buyers or sellers. This includes refunding part of an agents well earned real estate commission. There is a proposed law working its way through the Legislature in Trenton to allow some form of rebates under very limited circumstances. This has not been passed yet nor signed into law...and I hope it never does.

ALL Real Estate commissions are negotiated in advance in New Jersey, and generally are paid for by the seller. The idea that a real estate agent should be asked to pay a buyer any part of their commission to WORK for that buyer is insulting and degrading, as well as being illegal. The fact that a buyer thinks that the work of their agent is done once a contract is drawn up indicates a total lack of knowledge about all the work that is involved after the deal is negotiated (often the lion's share of the work). That is something we need to do a better job of communicating to the general public.

Are you kidding me??? In Texas, commissions are negotiable!!! I am not suggesting that I would cut my commission to 25%, but I would look at the deal and make a business decision. How is that "whoring out our profession"? In Texas, there is nothing illegal about splitting a commission with a buyer/principle, so long as it is disclosed. Finding ways to make a deal work is being resourceful... there is nothing unethical about it.

Joe B.

In Maine it is also illegal to give "kickbacks" to any unlicensed consumer and / or professional. Negotiation of a buyer's broker commission is spelled out in a Buyers Representation Agreement in our state. A buyer who wants to "allow you" to keep 25% of a commission to represent her in a transaction obviously has no clue about the real estate business and what is entailed in closing a transaction in this market (or any market for that matter)! Your better off without her and I hope the mortgage broker / real estate agent ends up in court.
I think everyone got off of the question asked when responding about Flat Rate Brokers, the question had nothing to do with that. Which by the way, I have ended up with several clients AFTER they were listed with Flat Rate Brokers because the homes did not sell and the clients were very uphappy with the lack of service. You get what you pay for.

It's crazy what buyers are asking these days! I'm not sure about the rest of the country but here in Oregon what the buyer is asking to do is considered sharing a fee with an unlicensed individual - big time violation! Not only would I possibly loose my license to practice but the professionals that i surround myself with would be scratching their heads wondering why I would do such a crazy thing!

Agents, think of it this way. When a retail store advertises something for 75% off it's considered a "loss-leader". It's their way of getting you into the store in the hopes you will buy something other than the item that they will lose money. Why would a professional Realtor operate on a loss schedule? The answer is, "THEY DON'T".

This is tricky for more than one reason. In my state (Mississippi), any sort of commissions which are "kicked back" to the non-licensed consumer is illegal. It may also be a violation of RESPA if it is not disclosed as being sent to the buyer. Banks/Lenders have strict underwriting guidelines and these guidelines usually state how much money a buyer has to come to the closing table with (how much of their money is vested into the transaction). A kickback of this proportion would adversely effect how much of their money is really in the transaction and, in this case, could also be construed as mortgage fraud.

These types of practices are engaged in all the time. Unfortunately, this is also some of the issues we have with our current lending environment. To discount your commission is one thing, to give a buyer a kickback after the sell is a completely different story and an agent that participates in this practice 9 times out of ten is doing so illegally.

Would I personally engage in discounting my commission to this level? It all depends. If someone called me out of the blue and asked me to write a contract for them on a limited service to close for 25% of my full service rate? Maybe I would. I would have a few variables to consider before agreeing to it and definitely stipulate exactly what I will do for that with any additional time being at a specified rate. I would not kick out the idea altogether. I would however make sure it is done legally. The "correct" way of doing this is to reduce the price of the house by the respective amount and reducing the cooperating brokerage commission to correspond with it - not by way of a kickback to the buyer.

Buyers are more savvy than ever due to the internet. They can do their own homework, saving their real estate agent a lot of driving them around speculating. Why not give them a rebate for part of the commission; they've done part of the work!

A 75-25% split in favor of the buyer may have been a little unreasonable, but the concept still works. Real estate agents need to adapt to changing client needs.

Cindi,
Consumers have a choice-- and so do I. If they find someone to write the deal for less, more power to them. MAybe they are good negotiators, and maybe they are getting less service. But it is their option to ask, and choose!

IT IS THE PROBLEMS THAT YOU NEVER HAVE TO FACE (because we avoided them:) THAT MAKE MY SERVICES WORTH PAYING FOR. My time and experience have been deemed well worth the cost to the many satisfied customers and clients that I serve. It is the same reason that I am willing to pay my attorney for title search work because his skill and knowledge of little glitches to look out for on chain of title have saved me countless (future) problems on properties that I have purchased. (GOD BLESS HIM!)

The bottom line is that you have to decide what work you are willing to do for what price. The commission always has been negotiable-- at least that has been my experience here in S Central PA. I have been in the business of helping folks buy and sell realestate since 1984-- that means there are a few years experience, and more than a few transactions, behind me.:))
THere is room for lots of options in this business. That is what the fee enterprise system is all about, isn't it??
Hope that helps

Mim Heisey
REALTOR , GRI

I have also run into this problem on occasion. I will tell them the key word is "represent." If you want me to just hand you a blank contract, sorry, my name is on it. You can find one at Staples. When they look at it and ask questions, I tell them, sorry I don't represent them, go find a lawyer.
But if you want me to call and follow up, speak with the bank, etc, and look out for your safety, then I consider that as working for my side of the commission.
Cut and dry!

Good day to you how interesting this must have been to be asked to do such a thing. I must agree with you 100% I would not agree to this type of business practice either. I wonder why Agents and or Brokers would agree to give their services away. Hmm a Loan Officer and a Realtor sounds as if this could get sticky quick. I would not give business to a Loan Officer that is a Realtor as well. I wonder if this person would agree to work all week and then get only 25% of her pay check, is that not what she just asked you to do. I am sure her response would be no I do not think so.
Make it a great day
Filip Properties
Laura Filip Broker,CRS, CHMS, CNHS, RCC
117 E Main Suite 106
Whitesboro TX 76273 http://www.GreaterTexomaMLS.com

pretty sad is about all I can say. No self respecting Real Estate Professional should succomb to that type of tactic on the buyers part, they will get what they pay for, period!

I have a problem with a mortgage broker doing real estate - period!

As a matter of principle, I do real estate and leave the finances to the mortgage professional - I just wish that they would pay us the same courtesy!

As for the topic .... more and more real estate consumers are negotiating commissions to the point of insult! Yet they expect top sevice and that we should be available at the drop of a hat!

I've discounted my commission once - never again!

Me personally I still think that the majority of the public still does not FULLY understand the magnititude of the home buying and home selling process. If done correctly there are numberous things that need to be done by any professional agent until that commission check is cut. It's unfortunate that mainly what the public sees or what they are concerned with is what the agent is making in terms of commission. I've had conversations many times with people who are anti-agent and think we make too much money in commissions. My response is usally two-fold. I explain to them how the almighty high commissions is broken down into co-broke first between brokers, then the agent gets a portion of that amount depending on there commision split with their broker, then we have to pay income taxes just like everyone else, and finally we have business expenses like everyone else in business, so at the end of the day that HUGE $5,000 commisson check that the public sees really may put $1,050 in the agents pocket. Chances are the agent has worked and average of 30 hours or so with that particular customer from initial contact with the buyer until closing.

$5,000 Total Commission - less
$2,500 to selling brokerage firm
$1,750 (70/30 Split with broker)
$1,312.50 (after 25% held for taxes)
$1,050 (after 20% put back into business)
30 hours worked with customer = $35 per hour.....

Now I tell them that really where the agent can make additonal money is to have both the buyer and the seller. But as we know the chances are really not in our favor that that will happen. I tell them that maybe 20% of time we might have both. BUT i go to say that I may work with 10 buyers but only 1 actually buys something. So the "X' amount of hours I put in with the 9 non-buyers are in essence for free and actually costs me money, with gas travel, time, brochures, etc....so that $35 per hour is out the window. They forget that our commissions is really averaged over buyers and non-buyers, listings that sell and listings that don't. Once they have a chance to absorb that they usually never bring up commissions again... :-)

I've been in the same scenario that Cindi has outlined about 6 times over the past 6 years. Most of my business (about 98% of it is full service) What I do if the buyer and seller have come to terms with a verbal contract but just need someone to facilitate the deal through a written contract ONLY, is to have BOTH parties sign a NO brokerage relationship disclosure which explains that I represent neither party and I am simply providing the service of assisting the buyer and seller with filling out the contract. I never touch the contract but have the buyer and seller fill in the blanks. This way I am protected, the buyer and seller get what they need and I charge a flat fee for my time. In this scenario I don't feel that I am whoring out our profession but have provided a valuable single service to a present and hopefully future customer. Of course I would not provide this time of service if I had worked with the buyer and showed houses, etc..and then they found another house that I didn't show them. In that case either the seller or buyer or both would bear the expense of my commission. If I provide full real estate services I expect to be compensated as such.

There are always persons looking for a deal. Most buyers do not realize what a realtor has to do to stay in the business and the education that is required to keep your license . The costs to join associations,to access the MLS (multiple List Service), and their insurance costs and to advertize thair services and the untold time agents spend in research to serve their clients This person is asking a realtor to represent them without adequate compensation for their efforts and expertise, and for protections in the purchase. I would not accept this proposal. Let the person(s) take care of all the work and the protections for themselves.

I am not even going to start on a mortgage broker that practices real estate. It just sounds to much like hireing your wife's new boyfriend as your divorce attorney.

What I would like to say is that I LOVE flat rate brokers. They have gotten me about 10 listings in the last 3-4 months.

Consumers just like you and I try to save a buck - nothing wrong with that.

Sometimes it works sometimes it doesn't.

Bottom line is, you get what you pay for !

I was also working with a buyer that wanted to move from a certain city in the bay area who requested a sizeable rebate on my commissions. He told me that rebates were a standard practice in the city he lived in.
I told him that my commissions could not be negotiated in any way and that my services deserved to be paid a full commission in light of all the training, work and risk associated with being an agent.

There is a perception in certain communities that we as agents are paid a lot of money and that we are not worthy of a full commission.

Cindi,
I agree with you. In this market, I still provide excellent service to the consumer. I take this job very seriously. The clients become part of my life, not just for a quick sale but for life.

Sherry Ferfes
Century 21 Doug Anderson
1727 West avenue K
Lancaster, ca 93534
sherryferfes@yahoo.com

Dot, just because you had a some upset clients, doesn't mean most folks have a problem.

Also I don't feel bad that the buyers agent is working hard for their 3% commission. Nobody is asking them to do the sellers work, but If they want to go beyond what they would normally do for the buyer, that it's up to them.

Yes that is how I make my money, and It's great that consumers have so many choices. I also perform full service for those that want it.

It could have been worse, she could have offered a 25% iou. Good Luck