I work hard showing my clients all homes on the market regardless of the commission offered by the seller. I attempt to get my 3% from the sell 1st, but if they will not, then per the buyer representation agreement, I get it from the buyer.
As an agent, I deserve to get paid the going rate for me services. If you are not willing to pay my fees, that is fine... Don't call me. I don't want to waste my time with people that are not willing to pay me what I am worth. I bet you are the same way on your job, you want to get paid what the going rate is for your profession.
My personal opinion is, however, is that it is a huge mistake to short change the buyer agents. I like to pay buyer agents a higher commission.(additional +1-2%) They are bringing the buyers, after all, and are instrumental to closing a sale!
The issue you describe can be come problem that surfaces when the buyer avoids having 'the talk' with their agent.
During the meeting the agent requested to occur at their office to have you SIGN the buyer agreement, you said, "I ain't sign'n nothing so I don't want to meet you at the office!"
Two important topics are covered in that meeting.
1. The responsibilities the agent has to the client.
2. The compensation structure.
3. Bunch of other stuff.
The agent will share, "I will show you every house on the market. However, some FSBOS, some auctions, some DIY, some flat fee brokers, some limited service brokers, will provide NO compensation to the buyers agent. I know you don't expect me to work without compensation. Are you willing to supplement the compensation to my minimal level?"
The typical response is, "I don't want to pay these additional fees, so don't show me houses that do not compensate you fully."
Agents responds, "Check this box and initial here."
This is not steering. This is simply not allowing sellers a free ride.
The agent who states they are not concerned regarding compensation is lying, or operating in the dark, or have an ambush waiting for you if you pick the wrong real estate. Even worse would be the agent who truly is unaware compensation of $1 (one whole dollar) can occur!
Buyers, when your agent says lets meet in the office to get to know each other, you really, really need to accept the invitation. It is as beneficial to you as it will be to the agent.
Michael Saunders & Company
The agent works for you. If you are not happy with the agent you can cancel the agency agreement (if you signed one) and interview potencial agents. Ask friends and family if they know of a RealtorÂ® that treated them right.
Jes Sierra, B.Sc.
I agree with Keith idea I think all Broker, Agent are working togehter that mostly
of the buyers have a committment with the Broker/Agent before they will show
the property to them I know how the agent feel if they see the commission is lower
than the standard commission is, actually we are not supposed to discuss any commision that is against the rules Code of Ethics and Standard Practice, Article 8 about commission. One think that the Listing Agent
are not going to accept less than 6 % or 7% due to the fact that he is incurred too many expenses such as
Advertising expenses,MLS Due, Association Fees, etc. that is why many of us dont want reduced commission. I am a listing Agent that"s why I know how it work...So your are asking if the commision is
negotiable or not yes it is negotiable, did you see the point right now..
Your profile says Home Seller. It sounds to me as though you are interviewing agents, and one of them told you one reason you should pay a certain commission amount is that agents would not be as inclined to show your home.
Assuming this is corrrect, here are some point to consider:
Your goal as a seller is to sell your home for top dollar. Therefore, you want maximum exposure.
We know that 90% of the time the buyer that purchases your home will be represented by a REaltor. Many of the responses you received below talk about a "Buyer Broker Agreement". Many buyers are under contract with a Realtor, a Realtor who knows the area, knows local values, and is a good negotiator.
So what you really need is a Realtor who can market your home in a way that will cause buyers and their Realtors to want to show it, regardless of the commission, right?
As it turns out, your area is one of my markets. I analyze the sales on a regular basis and know the market trends. If you'd like me to analyze your situation I would be happy to do so.
If you look at the Trulia link below, you'll see that the average sale price per square foot has declined 19.5% in the last twelve months. That is about 1.5% per month.
Based on your post it sounds as though you are concerned about the commission rate. Rates that I have seen vary from zero to 10%, depending upon the property type and situation. I recommend that you look at your situation from the net proceeds perspective. Figure out how much you will need to net after you pay all your expenses from selling. While you are concerned about offering one percentage point more or less, the market is going down 1.5% per month.
I absolutely agree with CJ, and in fact, my Buyer-Broker Agreement specifically states I will accept ANY commission offered by a MLS listing. I always place my Clients on an automated MLS Search Agent so they see ALL available properties that meet their search criteria, not a pre-selected list based on commission!
Anyone looking to buy in this environment needs to be working with a Realtor that understands their Fiduciary duties to their client are secondary to any business plan they may have for the year. I have always been of the opinion that there are two types of Agents: Sales-based and Client-based. The first focuses on sales plans (because that's what the system tells them is important), while the second focuses on the Client's welfare irrespective of time and the threat of a cancelled transaction (because that's what it means to be a Fiduciary - a person to whom property or power is entrusted for the benefit of another.)
If you read the agency disclosure it clearly states there is a fiduciary duty between agent and client. "In such a relation good conscience requires one to act at all times for the sole benefit and interests of another, with loyalty to those interests." An agent would not be acting in a buyer's interest by avoiding listings due to a commission gain by the agent.
I would never NOT show a house because of commission. I look at that after my client finds the house they want. Do I like it all the time, no but that's the way the cookie crumbles.