Glad you're convincing the seller to bump up the commission rate. That is always much appreciated at the buyer's agent's side.

However, regardless of how people feel about discounted fees, etc., I'm sure other agents feel this way. When I represent a buyer, and we identify a property that matches her needs, I show it to her, regardless of the commission. My service is to my buyer. And I build my business through referrals from clients who will appreciate my commitment and dedication. I will express my opinions on the condition, location, etc. of the property, but I will not balk at showing a property just because it has a low commission.

One can always negotiate or ask for a higher commission than what the seller offers...but if it's rejected, oh well, one can always try.

Good luck!

Sun May 18 2008, 22:27

Such a small coop fee speaks volumes to me about not only the Seller but their representation. A Realor/Licensee who cannot influence a Seller to understand that their discounted 2% coop fee is to their ultimate disadvantage, I feel, does not have the respect of their agent nor of our industry and ultimately me. And if I have a relocating buyer, first time homebuyer or seasoned investor who are motivated, qualified and ready to perform, why am I going to take this very valueable client and waste an offer on a seller and Realtor /licensee who, thorugh their first professional act, don't have the moxy to protect not only my brokerage fee but theirs? Go peddle your discounted brokerage plan some place else.

Sun May 18 2008, 19:53

Jennifer: Some agents only show homes based upon the commission split. Sad,, but true. A realtor professional won't do that to the client. They'll look out for the client's needs and wants first and always.
Here's what I do when I list, to take away just this type of situation:

First, I always explain to prospective clients that I do not cut my commission. If I'm not willing to negotiate a salary for my family, then how am I going to negotiate the best price for their home? The sellers usually don't question me any further after that - - they never had looked at it in that light! If they don't agree, then I do not take the listing. Not easy to do, but necessary at times.
Second, I ALWAYS ensure that my co-op fee is no less than 3%. Period. That doesn't change. But if you feel you must lower your commission - do so in 1/4% increments. Let them know that by lowering your commission, you will need to reduce some of the services you initially offer. This also gets the seller to understand exactly what that commission is really used for: marketing tools for their property; gasoline to drive potential buyers to the home; cost of web advertising, etc. What ever services you provide, it comes from the commission. After expenses the remainder is your "salary". It gets the seller to realize that you don't work for zero!
Third, try lowering the list price a few % points under what the market bears in your area. That will drive traffic to the home faster than anything else. You may be pleasantly surprised at the quick results! I've had great luck with just that since there is at least 8 buyers for every 100 homes. Keep us posted! Good luck,,,

Tina Evans,Principal Broker

Sun May 18 2008, 15:25

When I am representing a buyer, I show them everything they want to see regardless of it being listed, FSBO, etc. I do not pay attention so much to the compensation on the front end since I have no idea if this will be a fit for them. I am looking out for their best interest. In 12 years of business, I have never been not compensated and the buyer has never had to pay my fee and we average (my team) about 200 homes a year.

Now, when I am the listing agent - regardless of what rate I charge my client, I ALWAYS pay the other agent at least 3 %. I know agents that won't show listings for less and will make every excuse why they can't be shown to their buyers. I want my listings shown and if they aren't seen they will never sell.

Best of luck,

Jo Shaner

Sun May 18 2008, 13:12

I am sure that there are some agents that do not want to show your listing due to the lower %. It is wrong but we all know that it happens. I am not one of those agents. I show my clients the properties that best meet thier needs and wants.

Sun May 18 2008, 06:46

The politically correct answer is No, The Reality is Yes. Agents are in the business to make a living as are the clients they serve. Lets give a good example: Your buyer says that they have a window of three hours to look at homes. You can only show them 10 of the forty homes available. Many are offering 4% commission, Most 3% and 3.5% and then theirs the 2%. This get eliminated as a possibility. What if that agent had the buyer that was willing to pay the most amount of money for the home. Thats just one example. Remember the saying. Pigs get fat, Hogs get slaughtered. I talk about commission in my FREE e-book on my website.

Sat May 17 2008, 23:45

Short answer, "No!"

It is my job to find my clients what they want. If they want the home that pays me a "low commission", it really sucks for me.....but it is what they want that is important.

I don't say this in a naive, deer in the headlights way. It just IS WHAT IT IS.

Sat May 17 2008, 22:10

Hello Jennifer. As the listing agent, I have never offered a coop of only 2% as I believe that it does affect the # of showings. While I believe that there are a lot of agents who will show what suits their clients needs even if the coop is less than average, but there are also at least as many agents who will either not show a 2% coop listing at all or will put it at the bottom of the list. If the seller insists on the 4% total, I will either not take the listing or will offer 2.5% to the coop agent and take 1.5% myself.

When I select properties to show, I'll show a low coop listing if it meets my client's criteria, but I have to admit that I wonder how difficult the seller might be to deal with as I believe that most listing agents will try to get the seller to offer at least what's considered average and when a seller insists on the lower coop this might be a red flag. If the price is the lowest in the neighborhood and the there's nothing else wrong with the listing, I would have to agree with your broker's assessment.

Sat May 17 2008, 20:59

No it does not most of the time I don't pay attention to the bonus HOWEVER pleasant surprise when I reading tthe private remarks when the contract is being authored. BUT when the is less than 3% or less than 50% of monthly rental I just don't show the properties, toooo much time is vested to obtain a limited amount of time.

I think it is awfully odd that realtors have been only paid 3% as an agent never increased over the years, expenses for cars, gas, phones, etc, etc, etc, are taken out of the 3% vs. years ago the overhead was less expensive.

Sat May 17 2008, 20:20

I don't even glance at the buyer's co-op, when showing property to a client. I show properties that suit my client and match their needs, regardless of the co-op fee.

Sat May 17 2008, 15:49

Do you use buyer broker agreements in your area? My buyers have access to every property that comes on the market, but I use buyer broker agreements to ensure that I get paid regardless of what the listing agent is able to negotiate with the seller.
I think it is important to remember that when you present a property to the market you need to do everything that you can to attract as many offers for the property as possible. In order to do that you need to have the property stand out in every way possible and limit the detractions in every way possible.
Our fiduciary duty as agents precludes us from continuing as an agent if we say that we won’t represent a principal in a transaction because the co op is low. The only ethical answer is to have an agreement with your client (the buyer) about what your services will cost.

Sat May 17 2008, 14:02

We work with many out of town buyers. These clients use our search tool on our web site.. http://www.Bluffcityrealestate.com to look at listed homes and provide us with MLS numbers or addresses of properties to see before we ever meet them in person. We also email additional listings to them based on their criteria only...not the commission rate. The homes they choose to see .....are the homes we take them to see. If there is a higher or lower commission, it makes no difference....it is what the client is looking for that is most important and keeps clients loyal to you over the long term.
It is unfortunate that some agents may look to sell homes for their own best benefit and not their client's best benefit ....but that happens every day and does shed a bad light on our profession.
Good Luck with your listing.

Sat May 17 2008, 13:33

It is my expirience in 18 years that many Realtors will shop for the highest co-op fee split. This is especially true in times of large inventories. This does not reflect well on our profession. I try to fit the property to the Buyer and do not even look at the split until the pre-closing statement is produced by the escrow closer.

Sat May 17 2008, 13:07

What I show to my clients, depends strictly on what their needs and wants are in a home that they are wanting to purchase!

Sat May 17 2008, 13:00