It is STANDARD practice to advise all consumers that professional fees are negotiable. These fees and the terms and conditions will be explained.
The professional AND the consumer are FREE to NOT accept the fees or conditions presented.
The pro can choose to NOT engage the consumer also.
It is, and has always been a two way street.
That is what is so great about real estate, There is a mind-boggling number of business models.
A big brand like Remax allows their agents the latitude to construct their business in a manner suitiable to the agent. Even trying to place all 'big brands' into a common defination is faulty. Even more problematic when one attempts to predict the response others may make. Such practices of disinformation can be indictive of the currency some choose to use.
Professional fees are negotiable. They have always been negotiable.
Now, you should realize, the question may get more accurate responds if it were reworded:
"What brokerages do not allow agents to negotiate their professional fees?"
There is no standard practice or standard commission rate. This something negotiated by client and broker before services are provided. In my practice, I have chosen to be a 'full service' broker and do everything I can do on each transaction to make it successful for the client. In my experience I have found the old adage applies here - 'you get what you pay for'. And in this tight market where you need a broker who is experienced, savvy, full time, and available it applies more than ever
Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
Search Denver Homes
"Where There's a Will...There's a Way!"
With the "Silver Plan" you get X, Y, and Z services and the fee is 5.5%.
With the "Gold Plan" you get X, Y, and Z too but you ALSO get A, B, and C and the rate is 6%
Of course with the "Platinum Plan" you get all of those (A, B, C, X, Y, and Z) and you also get the home filmed by a professional videographer with a recognized celebrity from a local news station standing in presenting the home in the video itself! That runs 7.5%
This is a very effective tactic when presented smoothly at the end of the listing presentation. It is actually the most powerful closing technique that has ever been devised.
It is the "Alternative Choice Close".
This is an advanced form of the "Assumptive Close" and comes in forms such as the following:
Furniture Sales: "I can tell you really like this sofa and from what you've shared with me today I can tell it's going to be perfect for your family room. Would you like me to check and see which days are available for delivery or would you rather save the $99 delivery fee and pick it up here on Monday?"
Restaurant: "It's clear that you've enjoyed your meal. Most people tell me that they love the cheesecake here more than their dinner. Would you like to have a piece now or would you like me to put it in a to-go package for you?"
Truila: "This advertising package is going to really help earn you some sales as an agent by putting your face in front of people in the Denver area. Would you like to be featured on EVERY property that shows up or would you like to start slow and be featured on just 35% of the listed homes here on our site?
New Car Sale: "This Ford Fusion has just about everything that you've told me you like. Style, power, durability, longevity, made-in-America....would you like this turbo EcoBoost version you've been test driving or would you want to go with the Hybrid?"
Back to Real Estate, "Would you like the Silver Plan, Gold Plan, or Platinum Plan?"
In each of these scenerios the sales pro ASSUMES that you're going to make a decision today. They present choices. No matter WHICH choices is made, the sale is closed. If an objection is raised, then one can address the objection with the "If I - Will You" close.
Seller: "Well Bob...we really like what you've shown us today. We don't need Lucy Brown over at Fox7 TV on a video tour of our home so we'd probably prefer to go with the Gold Plan. But 6% seems rather high. You've told us that the home IS worth $750,000 after all."
Bob: "I hear what you're saying Mr. Seller and I appreciate it fully. After all, we all want to get the most for our money. We all want a little more value. Let's see if we can meet in the middle. If I reduce my fee to 5.75% - could we do business today?"
Anyway...you get the idea. Creating a "menu" of options allows one to smoothly move into a non-confrontational Alternative Choice close and from there move to a commitment. Any commitment at all is usually preferential to none...even if a concession on the part of the sales pro must be made.
That being said, established agents can pick and choose who they work with. Some may only want to take on so many listings per month because they have lifestyle goals that they want to see achieved each and every week (like fishing) and so they may only take on 5 listings each month. If they are in high demand then they may charge 7% or more and never cut their rate.
After all, if an agent only wants to take on 5 listings each month and 8 people call and ask to list their house each and every month and the agent knows that 3 of them are going to go with someone else because they don't want to pay a premium price for the service of getting their home sold by Mr. Super-Agent...then that agent can just go with the 5 that ARE willing to pay a bit more to have him list their house. It's good to be the King.
On the other hand, if the home is going to require staging and the owners think 'our home is the best', it may require additional time, education and services to get the home sold. Thus, higher commissions.
Kindred Real Estate
CA BRE# 01402946
Just like anyone else providing a service, an agent can (and is smart to) adjust what he/she charges based on the amount of work involved. So if less work is necessary, it's reasonable for someone to charge less. If more work is necessary, it's reasonable for someone to charge more.
Same as if you took your car into a shop. If all it needed was an oil change, you might be charged $45. If you needed new brakes, new muffler, an oil change, and new air filters, you might be charged $800. More work means more time involved means a higher payment as compensation.
Negotiations usually arise when the price of the property is either too low or too high. Properties that will generate a very low commission on percentage are marketed on a flat commission rate, for example; list price $50,000.00, commission $5,000.00 instead of the typical 6%.
Commissions are also adjusted depending on the Seller's motivation, location, condition or desirability of the property, a higher than standard commission or a bonus can certainly drive more attention to one particular asset.
Metro Brokers/DeLUX Team Realty, Inc. specializes in providing the ultimate in customer service to our residential real estate clients throughout the greater Metropolitan Denver Colorado area. Let our years of experience, education, and knowledge benefit you call us @ 303.327.5898 or TOLL FREE @ 1-888-LUX-Team (589-8326) for all of your real estate needs. We want to earn your business!
Visit our web site
This might include
New Window Screens
Heavy Duty cleaning
It all depends upon the listing and the owner requirements.
I don't know that agents change their commission based on work expected. You usually don't know how much work will go into a deal until you're in the middle of it. And some agents take on difficult deals for reduced commissions (short sales, REOs, etc)
Many smaller agencies will try to accommodate the will of the customer while still receiving fair market compensation for the work provided.
Denver Lifestyle Real Estate
Front Range Poroperties