Yes it is unreasonable to ask your agent to waive one of his commissions. As Realtors we are professional service providers. We have no inventory to sell at "buy one, get the second half off", or "buy one, get one free". Our effort is the same whether we have two transactions with two seperate parties, or two transactions with the same party. If the service you receive from your Realtor is great, naturally you'd want him/her to represent you in every transaction. It's unlikely that an accountant or an attorney offers the second transaction at half price, why should your Realtor do that? If you find an agent who will waive an entire commission for the privilege of having two listings, you've found a desperate agent. Do you really want someone like that handling your transactions?

Fri May 2 2008, 08:42

Really depends, if your agent is excellent and can get you top dollar in this competitive market, then pay them what they are worth. if you hire an average agent then you may not get top dollar and may want a discount. But when it comes to net numbers, hire the agent whose marketing plan and negotiations can get you the most. It isn't easy in this market and if you are wondering if you should get a discount, I can tell you right now the agent you may be considering has not impressed you. If your home is not listed yet, feel free to visit the link below to see what we do differently to get our clients top dollar, after I sit down and show a client what we do they don't whink about discounts. 509-362-1966

Thu May 1 2008, 17:18

One last thought - if an agent is quick to give up part of the fee that they might usually charge you might wish to consider how toughly they will be negotiating on your behalf when you receive offers. When you are considering price don't forget experience, education and results are the best way to evaluate your agents. A personal referral from a very satisfied customer or a referral from another agent who can can see inside the industry can also offer great results.

Fri Apr 18 2008, 18:44

Linda,

Everyone pretty much said it. I just want to share our splits with repeat clients. We offer discounts to clients who list multimillion dollar projects with us. They usually pay 5% commission, 2% as our listing fee and 3% for buyers agent. Occasionally we see a 4% commission, but that is when you buy and sell a home at the same time. That 4% commission is only granted to clients that have closed 10 deals or more with us. Otherwise we charge 7% for normal listings, and we earn every penny. Let us know what your agent decides to do.

Thu Apr 17 2008, 16:09

Hi Linda, Great question and thanks for asking! I and many agents have clients that do lots of repeat business through us and many referals a year and it is not common to waive an "entire" commission. The reason being is if you have a good agent we more than earn our fees with each and every deal we do. Try and think of it like this for a moment, let's say you have a mechanic work on your car 3 different times in a year for 3 different unrelated problems, would you think of asking him to replace your transmission for free because it's the 3rd time in a year you have gave him business.....no, you go back to him and give him your business because you obviously like the work he does. Every time he works on your car he is earning your continued business because he is honest and does a good job. Each time he repairs your car he deserves to get paid for his labor, parts, etc. Just as your agent earns their money with each deal and has expenses and labor put into that transaction. O.K, that's my two cents about waiving an entire commission, however, If it were me I would certainly offer you a "reduced" sales commission for 1 or both of the commissions on the homes you are selling. I would assume that your agent would offer that and if not, I don't think you would be unreasonable at all for asking for a reduced commission on a sale and I would think they would be agreeable. As far as the home your buying, that fee is paid by the seller and is completely free to you anyway. The short of it is you are giving that agent a good amount of business and it should be VERY much appreciated by that agent both verbally and with maybe a bit of a discount on fees. I have one client (fix-it flip-it specialist) that did 8 transactions through me in just over a year, I never waived my fees nor did they ask me to because they know I'm worth it and pay for myself every time, I did however reduce my fees on some accordingly though because its appreciated. Best of luck to you in your transactions and I hope this made sense and was useful for you. Take care! Sincerely, Chris Warmuth Windermere/North

Thu Apr 17 2008, 15:34

Dear Linda ~
Great question!
I understand you wanting a break in commissions. Each angent brokerage and individual agent will have their own resposes to this question. One thing to consider is that how commisions are paid is often misunderstood by the consumer. There is no "set" fee, but take for example a 6% listing fee. In many cases, the listing agent will only actually end up with an average of 2% of this (before taxes and expenese). 3% goes to the listing broker, and 3% to the selling broker, and the agents are compensated according to their split with the brokers. Brokerages take on the liability of the legal ramifications of your contracts, pay enormous amounts in advertising, office staff, ect. The agent gets a portion of the 3% but also pays out a considerable amount in advertising expenses.
This to say, you are hiring an agent to represent you and your best interests, and negotiate strongly on your behalf. If I am a good negotiater, I may say no to a commission cut! Remember, what matters is your BOTTOM LINE at closing, and saving money upfront is not always the best way to get there. As agents, behind the scene we do alot and in most cases, we truly earn our commissions. I suppose their are exceptions to this.
As far as service and support, you often get what you pay for. You may find someone to reduce their commission, but the most important part is the results and realtionships.
Wether or not an agent will reduce their fee is a personal decision that usually has to be ok'd by their broker.
If you don't already have an agent chosen, I would be happy to meet with you in person. :)
Best wishes!
Please visit my web site!
BethAnn

Thu Apr 17 2008, 15:27

Linda,

As Julie mentioned there are no common practices. This is something you should discuss with your agent prior to hiring them.

However, it is not assumed that the commission would be waived in multiple real estate projects. The realtor is doing the same amount of work as if he/she were listing two houses and purchasing another with three different clients. Especially in the case of listings. If you have a good realtor they will have a strong marketing and advertising plan and there will be costs associated with each listing.

Also take into account that they may not normally work three projects at once and will be managing two listings while helping find a home for you and negotiate all of the contracts once a purchase and sale is in place for all three properties.

Having said all of that commissions are negotiable and if you have the discussion up front your realtor may be willing to work with you on the commissions as a thank you for trusting them to help with so much of your real estate plans.

Do keep in mind though you are paying for a service and as is in most service industries you get what you pay for.

I hope that helps.

Thu Apr 17 2008, 15:07

Hello Linda,

As Julie said there is no set commission structure. Also, the seller of the home you will be buying is responsible for the commission, there is no cost to you as the buyer. Since there is more than one transaction involved, some agents might be willing to talk about your options on the commission.

If you are thinking of buy and/or selling in the Spokane region, I would be more than happy to discuss any further questions you might have!

Sincerely,
Doug Burke
Windermere Real Estate / Valley, Inc.
Doug@Doug-Burke.com
(509)220-8358

Thu Apr 17 2008, 15:05

No, it wouldn't be "common" for your agent to totally "waive" one of the listing commissions, but it would be reasonable to give you a discount for volume business.

Your marketing agreement would be with the brokerage, who'd be responsible both for paying for advertising as well as paying the 'co-operative' commission to the buyer's agency. So your agent can't totally waive either of the commissions. But it wouldn't be UNcommon for them to give you a nice discount for your business.

Thu Apr 17 2008, 15:05

Linda,
Great question! I first want to clarify that there are no "common practices" - it is up to each agent and seller to determine commission strategy in the contract. Remember that both jobs are two totally different jobs and require a lot of work to sell and help you buy. Talk to your agent about what makes sense given your situation, but understand that the listing & selling office commissions are paid by the seller, so when he/she helps you buy, the seller of the home you're purchasing is paying for your agent to represent you. Good luck!

Thu Apr 17 2008, 14:40