Sure, he is asking for a bigger cut, but......you apparently "typically" agree to reduce what you're getting, just not to the extent Fsbo is hoping for....................that's not a critique - just an observation.
This just points out something that often rears its little head online....the question about commissions ........and, as many of us like to remind others.... "all commissions are negotiable", which is true - as has been noted here.............we all have our own way of conducting business.
@FSBO - the fact is that if a total stranger came to you and asked, or more accurately in this case, expected you to give them $18,000....you would laugh and tell them to go away. How is your scenario here any different? What makes you special and deserving of a different response?
In NY, is the signed listing contract and stated commission written in stone?
It can't, with mutual consent of all parties, be amended (ie: reduced)?
I'd like to suggest that it's okay for the listing broker and the buyer to have different objectives in a real estate transaction.
Real estate brokerage is a business, licensed by the State because it is a business - we broker real estate for money, not for community service. While I don't expect the General Public to reach for a tissue over this, it is a business that has been especially hard-hit through the downturn.
I suspect that residential real estate brokers, who collectively have done as much as they could over the past several years to pretend that we are not "salespeople" (even though it says so on many of our licenses) - even going so far as to call ourselves Marketing Specialists or Consultants or Your Friend In Real Estate, just do not feel comfortable negotiating on their own behalf.
I don't much care whether fsbo thinks that the listing agent deserves to keep the commission that the seller has agreed to pay them. I will point out that if you try this in some other percentage-based venues, such as an auction house, they will tell you "no." Politely, but, "no."
Go to Christies and try to pick up a nice $600,000 antique. They'll tack 10-15% on top of that as a buyer's premium, and you can tell them how you didn't need a representative to call you up and find you as a client, they'll still tack it on. And the seller will be paying 20-30%, and you can't get your hands on that, either. Go ahead, ask them - "What would you rather have, $100,000 in commissions or an unsalable bric-a-brac in your warehouse?" They'll tell you, "Goodbye."
Yet, when an unrepresented buyer comes to our listing, we seem awfully eager to say, "Yes!"
Second, you missed a salient point - the listing agent's fiduciary duty is to the seller. So, if I am going to work at a lower commission rate, it will be to the benefit of my client, the seller, not the buyer. It then becomes my seller's decision whether or not to accept a lower price since their net cost to sell is reduced. Why would they do that if the asking price is at market value? Your "if" (the seller is willing to discount) is in many cases hopeful. You are not the only buyer out there. Actually, despite your claim, I don't believe you understand what a truly good buyer's agent does, because if you did, there would be no need for your question. Instead, you would be looking for an agent who would provide you with $18k worth of value.
Third, for a listing agent, working with some one who is unrepresented is MORE work, not less. So, unless you are a cash offer with proof of funds on the table at the time of presenting the offer, you probably won't get far. To them, you are just another buyer...and without an agent to help you.
Fourth, if your wife has all this time, suggest she get her RE license and your problem is solved. It seems at this point like you know just enough to be dangerous!
Lastly, it is not your $18k, it is the seller's. You are attempting to insert yourself in the agreement that has already been reached between the seller and their broker and is not really your business. Besides, there is no set 3%. All commissions are negotiated. We are seeing a lot of 2.5% and some 2% in our market.
Now, with all that said, the seller may be able to credit you in the transaction for recurring and non-recurring closing costs. In California, the Buyer Broker agreement allows for the Broker to provide a similar credit by writing in that condition as an additional term. Maybe in NY there is something similar. Good luck getting them to sign it though, especially if it is a big box broker listing the property instead of an independent. But both Paul and Robbie, Brokers from NY, are shutting your idea down.
CA DRE 01775528
Secondly, the listing broker only needs to share the commission if they need the help of another agent in finding the buyer. If the listing broker can find the buyer without help, why should they share the commission?
Personally, when representing a seller, I would rather pay another agent who knew what they were doing than give the commission to an unrepresented buyer.
well, truthfully, this really isn't about legality.......but, to answer your specific question, yes, the listing agent can certainly reduce his or her commission, and agree to take less, if they choose to do so.
The question is........will they?
the answer is........probably not
I know I wouldn't...........
Second point: if you work a deal were the commission is lowered to make it work for the buyer while an exclusive listing agreement is in effect and the sellers won't agree to the buyer's offer, aren't you in reality making a deal with the buyer while having fiduciary duty to the seller. After all, they're not making anymore. The seller just isn't going to sell it maybe but again isn't that lost taxable income that the seller's agent give up to the financial gain of the buyer or money he would need to make it work that is in effect goes untaxed income. It's not a easy yes and no so check with your board. You may be surprised. It's changed dramatically in the past 2 years.
It's really no more work for me to help someone buy a $800,000 home than it is a $200,000 home. Yes, it is limited service. The showing of 10 homes is including in our fee, and we charge $75/house for each additional showing. The business model has worked out great for us.
You can ask for a reduction in the listing price for what you want to save but it does not mean the agent will present your offer to the client or that the seller will agree. Either way the agent will get 3% or whatever was agreed before you stumbled into town. Furthermore, most people purchasing a home for 600k in NY has at least a lawyer that will write up a contract, or you can save more and get a contract your wife writes insured.
BOTTOM LINE:You can make an offer on any home for any amount even if the home is not for sale with pen and paper but you will not "EARN" any money. Don't expect the homeowner to start packing after seeing a post-it with your name number and amount you are willing to pay on their windshield, but the more attractive the offer the more likely they are willing to listen. Proof of funds, certified check from local bank and your willingness to take the property "as-is" may make any homeowner consider selling to you. You take the risk of liens, defect and a seller that take your money but never transfers the title or pays off the current mortgage but at least you save time and give your wife who is obviously very bored something to do. Good Luck
No, you will probably not get a kickback.
The Seller already has a contract in place regarding how much commission they are paying out; that will probably not change and certainly the listing agent won't want it to change...it is contractual.
If you don't have a buyer's agent to protect your interests, the selling agent (who represents the seller and not you) will keep the full commission.
Hire a Realtor!
Buyers agents are a good defense that is too often overlooked because of that reason exactly...consumers think they are saving money when essentially they're speaking to the agent who's representing the seller.
Best of luck