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Scott Hulen,  in 64068

If the commision rate is lower than " the market average " is the home shown by agents as much as a home with a " market average

Asked by Scott Hulen, 64068 Fri Apr 15, 2011

" commision? This question is not meant to be a legal question, but offered in addition to a recent question about how a bonus affects showings and the willingness of an agent to show the property. In other words if you stand to receive more or less compensation does it affect which properties you show.

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Not me. I don't even look at the commission. We'll sort of don't look. There was a time when a company in our area only offered $500. That would barely cover my gas and escrow control, let alone insurance.

What the bonus does is draws attention to the property, but I would not encourage my client towards one property over another because of commission and bonus. What is so important is that the client is happy. The bonus or added commission tells me the seller is motivated and willing to go the extra mile to get the property sold.

There may be other ways for a seller to entice a buyer. Buy down the buyer's points and/or closing cost, making the home more affordable.

Get creative. Understand what the objection in that house and market may be and address that. Perhaps putting some money into small upgrades, staging, landscaping, what ever it may take, because it is the BUYER who makes the decision not the agent.
Web Reference: http://www.terrivellios.com
1 vote Thank Flag Link Fri Apr 15, 2011
Scott viewing is not a problem. Making an offer may be a problem as in my buyers rep agreement it spells out a 3% commission to be paid at closing. If the listing is offering less than that my clients pay the difference.
2 votes Thank Flag Link Sat Apr 16, 2011
A most interesting question and one that is often used by agents to motivate sellers to increase their fee for professional services.

Generally speaking, I don't believe agents view the commission initially as a reason for showing or not showing a client a certain property. But wouldn't it be foolish for us to not think that certain properties are eliminated because of a lower fee associated with it.

If the position is taken that property with a higher commission on it will be shown more frequently wouldn't it be fair to assume that lesser commissions would receive less interest?

Respectfully,

Bill
2 votes Thank Flag Link Sat Apr 16, 2011
As James pointed out, a TERRIBLY low compensation situation creates COMPLICATIONS. Which is the opposite of making it easy for a buyer to purchase a home.
Two steps are added to the process. I advise my buyer I will submit their purchase offer with the provision the seller compensates me adequately. After all, they may be testing the water and trolling for a naive agent and gullible buyer. Failing to do so my buyer must make up the difference. This WILL put the seller in a difficult situation and may prove to be a more costly outcome than the result had they heeded their agents advise. I know sellers are in a very difficult situation, but it is very important for listing agents to communicate that a home not sold save no money at all!

Annette Lawrence
ReMax Realtec Group
Palm Harbor, FL
727. 420. 4041
Web Reference: http://www.MyDunedin.com
1 vote Thank Flag Link Sat Apr 16, 2011
A real estate professional should really put his/her clients interest first, regardless the amount of commission split...
1 vote Thank Flag Link Sat Apr 16, 2011
Less commissions many agents will skip the home for no showings insults the real estate community.

Bonus can work in some instances

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Sat Apr 16, 2011
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