Home Selling in Los Angeles>Question Details

Trueman, Both Buyer and Seller in Burbank, CA

How much does commission matter? Will a buyer's agent be less likely to show a place with 2.5% if there's a comp offering 3% to the

Asked by Trueman, Burbank, CA Tue Nov 23, 2010

buyer's agent? I'm selling my condo and am interviewing agents. There are two that I like, though both have different strategies. One is young and has a very strong web presence. The other has been a round a while and knows many of the agents in the area as well as common practices in the neighborhood. Honestly, it's hard to decide which agent's tactics will get me a better price and/or a quicker sale.
The younger agent wants a 5% commission and the more seasoned agent wants to keep it at 6% because there's a competing unit offering 3% to the buyer's agent. The difference between 5% and 6% is $6k, which I then feel I would have to make up in the sale price of my place. I find that it would be hard to do that in this market. Also, I should note that both agents agree on the list price.
Just curious to hear people's thoughts on this.
Thanks!

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Answers

92
>> Since they are the same, why would an agent choose to make less just to waste time showing yours?

Trueman, although I think this is the minority view, there are still agents around who think like this. That, unfortunately, is the nature of this business. However, an agent who understands "due diligence" and truly believes in "representing" their "client" will show your property regardless of the co-op fee offered. The rest are just "salespeople."

Good luck!
2 votes Thank Flag Link Wed Dec 1, 2010
Trueman,
Human nature is one side of the equation, ethical behavior is the other. While every agent will publically state they show all listings which a client wants to see, I advise my clients not to take any chances. I suggest the selling office commission be consistent with what other similar homes are being offered for, so as not to allow the one agent who may not be ethical with the one client who might really like your unit to miss an opportunity.
2 votes Thank Flag Link Mon Nov 29, 2010
Thank you everyone who has contributed to this thread. Like many of you, the "no one will show your place for a 2.5% commission" rubs me the wrong way because I find it unethical. However, I understand people are people and I can't expect the world to think the way I do. Also, I'll add that I've both scored some pretty great deals over my lifetime, and been subjected to being ripped off by people who have claimed to be well worth their high fees, so I believe that sometimes you get what you pay for and sometimes you don't.

To add more specific information that posters have questioned or commented on, I'll say that the competing unit in my building is in an inferior location in the building as it sits on a busy street. Mine is on a quiet, tree-lined street on one side with a nice reflection pool on the other side. Also, their unit has not had much work. It has the original formica cabinets and tiled counters. Mine are shaker style with granite in the bathrooms and kitchen, with new floors, removed acoustical material, and new carpet. Overall, my unit is much more contemporary.

In terms of me "agonizing" over a mere $6K, as one of the posters accused me of, I'll clarify that I understand that it will be spent somewhere, so maybe my question is, "in this market, is it better to spend that money in agent's commissions or in lowering the price of the condo?" Furthermore, I should mention that although the other unit is offering 6%, it has not had any offers whatsoever, since hitting the market at the beginning of November. It is priced $20K less than an equivalent unit that closed in September of this year.

Thank you again for all your comments. It's given me a lot to think about. If there are any buyers out there, I'd love to hear from you also.
2 votes Thank Flag Link Mon Nov 29, 2010
@ Myra:

You state, “why would an agent choose to make less just to waste time showing yours?”

I completely disagree with this type of thinking. It’s this kind of unprofessional behavior that gives our profession a black eye. As a professional Realtor, bound by a code of ethics, it’s my fiduciary responsibility to show ALL the units to my clients, not just the ones that put the most money in my pocket. And in reality, most Realtors these days don’t put together the list of properties to show their clients - in many cases the buyers specify the ones they want to see. Most buyers are smart enough to know when there are numerous units for sale in any given location. And they can see, from the pictures on sites like Trulia and Realtor.com, whether of not the previous owners upgraded to granite counters, etc.

If their hit list includes the unit with the lower commission, how do you propose to explain to them that you will not show it to them?

Are there Realtors out there who steer their clients to the properties with the highest commissions? Absolutely. Is it right? ABSOLUTELY NOT. Do we cater to the unprofessional Realtors and build our industry around their less-than-reputable behaviors?

I hope not.

Personally, I refuse to stoop to the lowest common denominator. As a listing agent, I carefully explain how Realtors are supposed to function – and I also explain that there are Realtors out there who act in a less than professional manner. Then I leave the choice of commission rate to the seller. It is then up to me to decide whether or not I will work for them at the rate on which they decide.

On the other hand, as a buyer’s agent, it’s my role to show them everything they want to see – not what I want to show them. If a specific property brings in less than adequate commission, I have the option of explaining that fact to them and then asking if they want to contribute. I can also head this off at the beginning by having them sign a buyer/broker commission agreement with commission minimums. Personally, I don’t do this for the simple reason that it is offensive to some buyers. Instead, I provide documentation that explains all the options – new homes, FISBOS, etc. and how commissions might work for each of these different scenarios. It informs the buyers up front in a non-threatening manner and demonstrates that we have their best interests at heart, not our bottom line. It’s a practice that offends no one AND has worked extremely well for our team. And at the end of the day, if they settle on a property with a low commission and choose NOT to contribute, we represent them anyway. And do so in a fully professional manner all the way to the finish line.
.
2 votes Thank Flag Link Mon Nov 29, 2010
I can say for myself and other good agent I know... I/we will show our clients any property that they want.. even if its 2% commission. We are not doing out job if we dont. I know that it is a Keller Williams policy not to list a property for less than 2.5 %. Here in California 2.5 % is not unusual. We would always prefer a 3% but our clients needs come first....
1 vote Thank Flag Link Mon Apr 14, 2014
"in this market, is it better to spend that money in agent's commissions or in lowering the price of the condo?"

Well, Trueman, some might argue that to get your home sold, you should do both. :)

If you want my opinion, however, and it's a choice between less commission or lower list price - I'd absolutely go with the lower list price.

If an agent is foolish enough not to show your home due to .5% less in commission - I am sure in this day and age their buyer WILL find it online, and ask to see it . If they don't want to show it, believe me, someone else will.
The lower priciing will attract more buyers, and that should be your goal.

Best wishes.........
1 vote Thank Flag Link Mon Nov 29, 2010
Let me try this from a different angle, select a great agent and pay her fairly.
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Thu Nov 25, 2010
I think that all you can hope for is: that you actually do get what you pay for. If you spend less, you should not expect to get more. You don't look at a $600,000 house and say, "This one's certainly worth it, but we'll find a better one for $500,000. If you hire a contractor for $15,000, you don't expect them to do a $20,000 job.

Along the same lines, if you think that $6000 is worth holding on to, then why would you think that half of that wouldn't make a difference to at least some showing agents?
1 vote Thank Flag Link Wed Nov 24, 2010
I agree with Joan......and, truthfully..........

Sometimes, you DON'T get what you pay for..............I know some agents who charge full commissions (whatever "full" means, as it varies from area to area) and they do not provide the exemplary marketing and service the seller is expecting.

I listed an expired listing this year, and was mortified by the terrible job the first agent did - no photos, listing incorrectly filled out, no room sizes...wrong bedroom count, no feedback, follow up, etc, etc .......and the worst part was, the sellers received NO guidance whatsoever from that agent, especially where the price was concerned ---- - Oh yes, he charged them the highest commission being charged in the area.

There is no equation that says a higher commission equals high end service.

Trueman - when acting as a buyer's agent, I would show any condos that work for my buyer.
In your case, even if you were listed at the lower commission, I would absolutely show your home, and be more than happy to sell my buyer EITHER unit - whatever worked best for them.
Any buyer's agent, imo, who doesn't do that, should have their license revoked, as they are supposed to be working for their buyer!

In regard to your listing -- Just make sure your home stands out in price and condition from the competitive unit.
Make sure you get a WRITTEN, detailed marketing plan from both agents, and compare them............Both agents should have a strong internet presence - if one doesn't..... don't use them.

Good luck!!

Web Reference: http://www.debbierosesells.com
1 vote Thank Flag Link Wed Nov 24, 2010
This is what I wrote earlier on this thread regarding the ridiculous statement "you get what you pay for":

Please do not listen to the ludicrous "you get what you pay for". An agent charging a higher commission has no bearing on the quality of service. Conversely, there are plenty of agents who can do a wonderful job on a lower commission.

I will challenge any agent to prove the above statement wrong and until you can prove "you get what you pay for" has any validity, all agents should refrain from using it.
1 vote Thank Flag Link Wed Nov 24, 2010
You know, you can offer a buyer's agent 10% commission and it doesn't mean a darn thing if buyers feel that the place isn't priced correctly or it doesn't show well. The only thing it would mean is that increased showings on a higher commissioned property would shed light on some shameful behavior on the part of some real estate agents.

And to those agents who seem to think that because an agent is "settling" for 5% it means the agent has an inability or reduced ability to negotiate and that it would mean reduced service, shame on you because that has no basis in reality. Absolutely none.
1 vote Thank Flag Link Tue Nov 23, 2010
Trueman
I find your question very interesting. It appears based on your question that you have narrowed down the difference between the two Realtors to 1% of the selling price.

I find that very hard to believe, if you seriously compared their proposals. And it does not just mean PRICE. Anyone can price a home correctly. It is marketing, attracting the buyers and their Realtors, negotiating the offers, helping you select the right offer, and following up on closing.

THAT is where the value lies..everything else that you did not mention.

Here are a couple of examples:

How many properties are your competition? According to the MLS there are 98. How many sold last month? 14. So there is 7 months of inventory. In our area that is a BIG time buyer's market.

Ten listings expired in October, 19 new listing just since November 1st/. So inventory is growing. That means that as supply goes up, prices go ?

Your real question should be this: How do I sell my home for the most money? What you are paying for are RESULTS. How much do I net?

I would ask your Realtors these questions:

What are the features of my condo that make it stand out from the rest and how are you going to market them?
What results can I expect from the marketing that you do?
(10-12 showings or one offer in the first two weeks, or we adjust the price)
What are we going to do if that does not happen?

How will I know if buyers are qualified?
I personally call the "winning" buyer's lender and talk with them. It might not be a bad idea to have then cross approve with another lender just to make sure that they really are qualified.

Have any condos sold in my building recently? Am I going to have any problem with buyer's financing being approved? HOA issues that affect issuing the certificate?

If you really went through the process I'll bet one of these two Realtors will begin to stand out.

Good luck.
1 vote Thank Flag Link Tue Nov 23, 2010
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Hi Trueman:

Different agents will handle this situation differently. I my own case, my buyers understand that I expect a minimum commission, which is the most common commission in my area. They sign an agreement stating that they will make up the difference if the seller offers a lower commission. As such, buyers typically reduce any purchase offer by the difference, so the seller usually ends up paying the full commission anyway.

Best,
Ron
1 vote Thank Flag Link Tue Nov 23, 2010
When buyers agents are showing homes, they are basically looking for work. So if you were looking for work and there were two employers that were hiring. One was paying $6000 more than the other, which job would apply for first? It's pretty similar when agents are showing homes. If all the younger agent has to offer is a discounted commission and a few websites, you may want to consider the agent who has done this time after time again. If you're still not sure feel to call or email me for a third opinion.

Regards,
Michelle Gonzalez
Realty Executives Select
562-572-5224 Direct
1 vote Thank Flag Link Tue Nov 23, 2010
Hi Trueman, here in NJ we are seeing more 6% listings because it is taking longer to sell, but I would say that 5% is still more common. I recommend that you go with what is customary in your market - don't skimp - that can hurt you. The lesson of Foxton's should be remembered....

Assuming that you do that, I would gear all incentives towards the buyer - realize that in this market, price is the driver. If you don't draw traffic, repeat visits, and ultimately an offer, then you've got to address price. So be prepared for that.

Only you can decide which agent is the right pick for you. I will say that online exposure is so critical today - as is agent effort.

Good luck to you,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Tue Nov 23, 2010
The truth is, there are agents out there who look at the commission first!
1 vote Thank Flag Link Tue Nov 23, 2010
“This is a buyer’s market and you will be competing with other listings that offer more commission” that is the line many Realtors use. I personally do not look at the commission being paid when I am showing property to a buyer. If the home is in the price range, in the area and has the features my client is looking for, I won’t but my needs ahead of theirs, I will show them any listing that fits their needs regardless of how much commission is being offered.

When I represent the Seller, I work hard to find a buyer for my listings....that’s why I get hired, to find a buyer. I just don’t take a listing just to add to my listing inventory or to put up my sign so that I can get more recognition.

If that young guy is so quick to discount his commission how hard do you think he is going to work to negotiate on your behalf. As far as having a web presence, that’s nice to have but the web is not going to sell your home, your Realtor should be doing that.

If you want a quick sale you have to find an aggressive agent who is going to actively work hard on finding you a buyer. Having good working relationships with other agents is nice too, but again, you are hiring an agent to find you a buyer.

It sounds like both these agents plan on taking a listing and just putting it on the MLS and then sitting back to see who else can bring in an offer—they should be looking to sell that property not just list it on the MLS and put up an sign....that’s not selling, that’s order taking and those days are gone.

Aida Pinto
Real Estate Broker
(562) 916-3237
Email: TheShortSaleDiva@yahoo.com
http://www.ShortSaleDiva.org
http://www.ReoLicensedSpecialist.com
1 vote Thank Flag Link Tue Nov 23, 2010
Posted in Nov 2010.
91 responses, It's worth another go around.
I've observed listings posted by limited service or flat fee brokers where the buyer compensation was ONE WHOLE DOLLAR.

Many times a buyers want to see a FSBO who will not play ball with a buyer agent.

All you agents to 'SHOW EVERYTHING' to your buyer are clearly pleased to work for FREE!
Will all 'Work for FREE' agents please announce yourselves, there are lots of folks who want to do business with you.

Here is what has not been discussed. REAL professionals will discuss with their buyer the minimal compensation expected that is usually paid by the Seller. The buyer can be given the option to pay out of pocket any shortfall in that compensation.

The result will be the buyer will say, "Don't show me anything with additional out of pocket expenses."

The seller offering 1.5, 2.0. 2.5 could be TAKING THEMSELVES (their real estate) out of the game, not the buyer agent.

This is a business not a hobby.

My buyer said, "I don't want to see any wonky property."
0 votes Thank Flag Link Tue Apr 15, 2014
You dont just have to do a 5% or 6% option. Get creative.. maybe do 5.5% do 3% to the buying agent and 2.5 to the selling agent.. Just remember... your trying to get out every dollar out of the property. What ever agent you select with work hard because the more money they sell it means more money for you both. Just make sure who ever you go with knows how to market your property on the web... good luck
0 votes Thank Flag Link Tue Apr 15, 2014
As a buyers agent I consider it most important (and my fiduciary responsibility) to find my client the best possible property regardless of the commission offered. It would be nice if every agent felt that way too.
As a seller and sellers agent, I find the amount of commission offered can be a very important and strategic decision. First I look at the market, is it a "Sellers Market" (inventory levels of less than 3 months), A "Neutral Market" (Inventory levels between 3-6 months), or a "Buyers Market (inventory levels over 6 months).
In a "Sellers Market" I can offer a commission of 2.5% or even 2% with no worry of decreased interest or traffic.
In a "Neutral Market" a commission of 2.5% is acceptable, but 3% would possibly entice more agents to preview or bring clients.
In a "Buyers Market" I always start at 3% and have even gone as far as to offer 4% to entice more agents to visit the property.
Regardless of the market, I charge my seller 2.5% to list the home, so if you are offering more to entice the buyers agent, as a listing agent I don't add more "enticement" to my side.
Any agent you interview should be providing you with data, showing you sold comps that would be appraisal comparable, active comps to see your competition, and inventory levels so you can determine your immediate areas market condition.
example: If 10 homes sold last month in your area, and there are 30 homes active on the market in the same area, then there are 3 months of inventory.
In conclusion, proper pricing from the beginning and strategic planning of buyer side commission, can prove much more inexpensive than price cuts, (most buyers would not even notice a price cut that did not exceed 5% of the purchase price)
Good Luck!
0 votes Thank Flag Link Tue Apr 15, 2014
I am 4 years late in this conversation, but the subject appeals to me. In today's world, buyers are finding homes they like online, and guess what? It won't matter whether the commission is 3%, 2.5% or otherwise, that buyer will want to see that property.
BUT...I also know of agents who practice this train of thought of NOT showing their buyers a property if it pays less then 3%. These agents are not doing justice to their buyers by limiting the options, especially in today's (2014) market where there typically are not many options.
NOW...all of this being said, I ALWAYS offer 3% (unless it is a short sale - different conversation) on the Buyer's Agent side, due to the fact that I know we would be eliminating some buyers, due to their agent's greed. Our job as Realtors is to make the home appeal to as many buyers as possible, which is the only way you will get top dollar, and one of those ways is the buyer's agent commission amount.
The agent who wanted to lower their commission to 5%, should offer 3% still, and only take 2% on her side.
In conclusion I will say that an agent who discounts their commission, typically has a reason they are doing it, and quite honestly, they should. My opinion on this particular matter is that the agent that was "older" or "more experienced" is probably going to negotiate a much better price, better terms, and do a better job during the inspection phase and protecting your overall liability as a seller.
I hope this helped.
0 votes Thank Flag Link Sat Mar 29, 2014
I don't think an agent will specifically avoid showing a low commission house, particularly if the house meets the criteria of their buyers. If I wanted to attract the most buyer agents I certainly would not be the one offering the lowest commission. I would offer more.
0 votes Thank Flag Link Mon Mar 24, 2014
I show whatever my buyers are interested in, but I can tell you that there are Realtors out there that do look at the commission and prefer to show listings that are higher.
0 votes Thank Flag Link Sun Mar 23, 2014
Clearly the seasoned agent is selling you experience and skills. That agent knows that in the real world many agents will not show your property if they are only going to get a portion of 2.5% when competitors are paying 3%. This agent wants to make sure that you are covered and nothing preventable will get in the way of selling your home. That comes from experience. Please understand that the agents are the workforce for the real estate industry, and 98% of agents share 40 to 60% of their commission with their brokers. On top of that, they have office and technology fees, supplies, automobile maintenance and gas. Real estate is the only profession in which the professional has to finance the cost out- of- pocket to provide a service to someone else.
Real estate seems to be a transient profession that everybody seems to think they are the expert at, with no real training. Most agents take a 75 hour class, pass their exams, get a website and are instantly in the real estate profession. Who knows the difference? They lure clients with discounts, rebates and a percentage point lower to get the business, but cannot really provide the service that an experienced agent can provide. That is the only way they can compete, they look for sellers who are not looking for professionals but just want cheap. It takes years to really learn this business.
Many people jump in Real Estate because it is glamorized and to make quick money, only to find that it is more than a notion. There all laws and technical issues that an expert knows and the newbie will not. Go to Georgia Real Estate Commission website, search agent, and type in any common last name. For example, “Smith” and look at all of those who left the business. Many have realized that this is not a game; we are dealing with people’s homes and finances. Real Estate is a serious business and it is cheapened by some of the activity and mistakes that happens as a result of inexperience and lack of training.
Inexperience agents can cause you unnecessary delays and can be a liability instead of an asset to you. An inexperience agent can cause you to lose thousands of dollars in profits on the sale of your home. So the decision is a personal preference. Buying a house is the largest transaction most people will make in their lifetime. Selling one is also a major transaction. Yes, you really do get what you pay for. Inexperience will tell you otherwise. Don't you deserve an expert working for you?

Brandi Callum
Associate Broker
American Realty Professionals
404-939-1322
0 votes Thank Flag Link Sun Mar 23, 2014
my pleasure..........anytime!
:)
0 votes Thank Flag Link Mon Dec 6, 2010
Thanks for the clarification, Debbie.

Jim
0 votes Thank Flag Link Mon Dec 6, 2010
Just to clarify one misconception regarding anti trust laws - it is NOT illegal for a company to advertise their commission structure - it IS illegal, however, to have a discussion among different agents in different companies...such as on an interent forum or at a meeting oreven on a golf course!

Below is an excerpt from an article on the antitrust laws :

"The prohibition on price fixing forbids agreements among competitors on prices, such as real estate listing commission rates, including commission splits. The law does NOT preclude a competitor who establishes its commission rate unilaterally and without agreement with other companies FROM ADVERTISING that commission rate. The law also ALLOWS that competitor to engage in competitive advertising, in which the company explicitly compares its stated commission rate to the rates publicly promoted or advertised by other firms, provided that the advertising was truthful and not misleading. In fact, the policy underlying antitrust laws — promotion of vigorous and healthy competition — would tend to favor and ENCOURAGE such comparative advertising since it HELPS CONSUMERS easily compare and contrast prices offered by various companies..."

FYI, and as an example - There was a company called Foxtons, now defunct, that had a huge print, radio and signage advertising campaign promoting their 2% commission structure - all was perfectly legal.

It's the discussion among realtors, that might hint at collusion, that is illegal - not openly advertising a company's policy. Confusing, yes, but makes sense when you think it through!
0 votes Thank Flag Link Mon Dec 6, 2010
Trueman

Offered it to both of them. The one that sells it gets the prize. It does not have to go to the MLS. and no one is asking you to list it. But if you do>>>>>
Remember a listing is just going fishing with your house as the bait.
How about an agent delivering a buyer that is ready and willing with an offer.
How about a buyer paying for the broker's commission?
Seems confusing?
Not at all . Buyer's agents do that most of the time........... question are you ready to take their offer?
Listing agents can agree on what your house should list for but can they agree on what you should take when a low ball offer comes in? That is left up to you.. Especially if you are under water with your mortgage. Do you know how low you will go? Did you tell that to the listing agent? Should you? Is it much lower than your suggested listing price? So as you can see it really is not about the commission. It all has to do with at what price you will take. I whisper a secret to you. Just as your price is negotiable so are commissions. The experienced smart agent knows that buyers are NOT born every moment in this market if they want to hold out it is their mistake than what they will have is an expired listing and you are back to where you started.
There are a million stories in real estate but the one that is worth telling is. The sellers sold his house twenty thousand dollars less than the offer he received and rejected six months ago. Know when to buy know when to fold. A realtor is only a messenger but t what would you do without one . They post and deliver.
Don't get hung up on commissions take the agent that has the experience it's not the price you pay it is the risk of not getting the result.
0 votes Thank Flag Link Mon Dec 6, 2010
We cannot speak for other agents how they would act based on 2.5% or 3%, but we would be more interested in finding our buyer a home that fits his/her needs to best. I am pretty sure that would be the same case for most agents. More importantly is that the home shows well, price right and easy to show.
0 votes Thank Flag Link Mon Dec 6, 2010
I havent read all the postes here so I apologize if I repeat but there was a study performed by the National Association of Realtors that states a full 3% commission receives up to 46% more showings than a discounted commission.
0 votes Thank Flag Link Mon Dec 6, 2010
Would I show both the 3% and the 2.5% listings? Yes...bottom line for me is having a satisfied Buyer and would never steer them to one listing vs. another due to commission. But when hiring an agent a more important consideration when hiring an agent shouldn't be the commission they are charging but whether they are a good fit with what you expect in an agent and have a solid track of success.

Best of Luck,
Judi
0 votes Thank Flag Link Mon Dec 6, 2010
That is tough but i would always lean to who ever you have a better feel for. Niether agents approach is wrong, just different. I would ask each agent what their list to sales price percentage is. That might help you decide. If the older agent gets on average 3% to 4% more that the other agent, then there is better value with the older agent even if that agent's commission is 1% higher.

Good luck
Tom
0 votes Thank Flag Link Sun Dec 5, 2010
Today's Market is beginning to be reflective of some yester-year (1980's) creative strategies. Every situation is a little different as is every local market. So, bottom line, everyone (Homeowner, selling agent & Buying agent) wants and needs a sell. The Best that all parties concerned can hope for, is that all parties are willing to be "Flexable and open minded".

That 1% divided between Seller, selling agent and Buying agent is only 33.3% of 1 percent. This can be a much easier strategy to swallow financially for everyone.

In direct respose to the question; YES, sadly some (not all) agents will absolutely pass on homes that are over priced, not in the general showing area or if the Commission has been cut.

Generally speaking, if we have a listing and we want (need) to help out the Owner, we might cut our commission and we (the listing agent) will take the 2% side...

There is No perfect answer to your question. So, in this market I would Highly recommend Guarding against the suspected "what if's". -You'll sleep better at night...
0 votes Thank Flag Link Sun Dec 5, 2010
After reading more answers I must add that there is a real need for clarity here. People buy homes. The notion that an agent wont show a home based on percentage of commission is rediculous. In my maket (Westchester NY) agents want to close deals. We want satisfied clients. It is highly unlikly a property will sell fast due to the commission paid. I have had over 12 listings this year. A few of them sold very quickly. In those cases the price was right and the market proved it. In the case of a home not being shown it is usually one variable, price. It is how people search and it is the honey that attracts the bee's. Price it right and it should sell. That spoken I do support the use or an experienced agent. There is so much that can go astray
you need a person with good skills. Please just understand as agents we all come with different features and benifits. find one you feel will do the job then price it right!
0 votes Thank Flag Link Sun Dec 5, 2010
When I am busy working with buyers I try not to notice the commission untill I have an offer. If a buyer senses an agent is pushing a home due to a higher commission they will drop him or her in a new york minute. Its all luck of the draw which home will appeal to a buyer and 3% or 2.5% makes little difference to a good buyers agent. As far as listing I lean towards the person with web savy. BTW you ask which will bring you the best results. Pick the one you trust most and let them set the price! Price sells! Very few sellers want to hear or embrace this. Good Luck!
0 votes Thank Flag Link Sun Dec 5, 2010
I'm a huge buyer's agent and I list properties as well. Although 3% is better in an agent's eyes, when I have a client and we are looking to buy, I scan properties that meet their criteria and what MY BUYER wants. My personal feelings have to stay out of it. I will show homes with 2.5% commission just as much as homes with a 3% or higher commission. Would it be nice if my buyer liked the home paying 3% or higher commission? YES...However, my duty is to find a property my BUYER likes, not what the other side is paying me. It is my BUYER's decision, not mine. If it comes down to 2 properties he or she likes and one pays 2.5 and the other 3 or higher? I still let my buyer decide, it's not my choice to steer them. I think all agents are definitely willing to show properties paying 2.5% to anyone, it's when the commission is lower than the base 2.5% that I and I'm show most agents draw the line. If I see a property paying 2% commission, and it is not in the over $800,000 price range, then I will think twice about showing any buyer a property paying commission that low. If my buyer pointed it out to me, then I will show it, if I see it pays 2%, I will pass it up. Every agent I know, will NOT show properties at 2% or lower commission to anyone. I think I would use the 5% guy, not because he is at 5% but if he has a huge internet presence this could help you. The old school way of doing things and an agent who is not flexible, disturbs me. Go with your gut feeling and who you feel will do the best job.
Sheyenne Schultz 310-429-4170
Web Reference: http://www.shysells.com
0 votes Thank Flag Link Sun Dec 5, 2010
Being a listing agent requires to be strong both on the web presence and also have a good knowledge of the neighborhood among other numerous factors. Just trying to save 1% of the commission by hiring the agent that has just a web presence may end up not selling your property at all.
Look at all the other determining factors of choosing an agent because the main goal here is to sell your property in the fastest possible time.

Hope this helps.

Thanks
David
Web Reference: http://www.DavidNewHome.com
0 votes Thank Flag Link Sat Dec 4, 2010
Trueman,

I have a cousin who lives in Burbank and I follow the market. I will let you know that I bluntly think both will do a good job. They're just going to get to the end result in a different way. The internet presence WILL HELP, but also will the other REALTOR KNOWING OTHER BURBANK AGENTS. So I think it comes down to: who you like better/get along with AND which strategy you prefer. Will you be made at the 2nd agent if your web presence isn't that big? THEN GO WITH THE 1st. Will you be upset if your agent hasn't worked with the agents that show and preview your home? Go WITH THE 2nd. Track record and testimonials are huge. Tell both you're about to make your final decision and would like 2-3 testimonials from past clients. I think that will help put you at ease. Best of luck! You should post your listing on here after you decide. I'm up there twice a month.
Web Reference: http://www.felixhung.com
0 votes Thank Flag Link Sat Dec 4, 2010
Choosing a full-service, full-time agent should have nothing to do with what commission rates they're offering. Ask for both agents' market stats in the past 90 days. Statistics show that over 90% of buyers begin their home search on the internet, therefore, I would lean toward the agent that is more online/tech savvy.
0 votes Thank Flag Link Sat Dec 4, 2010
I can say for myself 2.5% or 3% it doesn't matter to me. When I am representing a buyer I put my client first not my commission check. I bet the agent you choose to help you sell your home you will choose that agent because they are the best agent for the job. In my opinion a good agent deserves to charge a 6% fee. There is a lot of hard work and stress that both the selling and listing agent goes through to help their clients achieve their goal. There are probably some agents out there that will skip showing your home if there is another listing with a higher commission split but it is probably rare. Good luck!
0 votes Thank Flag Link Sat Dec 4, 2010
it is really like selecting ties............10 men have a navy blue suit and they all pick a different patter &/or color tie. Much like opinions.......everybody has a different one. I cannot believe that people are still barraging you with answers. If your listing agent is a hard worker then he certainly deserves a 3% commission (most of the work performed is by hiim). As far as the selling agent goes, they only have to bring the client to the property but commission is an inducement for many that will make them show your unit first. As I said before pick the one you like, because you will trust them and if you trust them then you want to have them handle your single most expensive possession.
0 votes Thank Flag Link Fri Dec 3, 2010
David, you have to show "everything?" Even if they've decided on something beforehand?

I was a member of CBA here in Seattle, so I'm not a novice. They have an MLS, and co-brokerage agreements. Perhaps that's not the practice in your area, but I do know that many a relationship has been strained over a misunderstanding in the deal.
0 votes Thank Flag Link Fri Dec 3, 2010
Mack,
In the commercial world. it's different.

Commercial property, in my area, is hard to come by - for sale. If it does, I can usually pick up the phone and sell it

Leasing is different - I have to show everything. It's reall different - many commercial properties may not be listed. It's more relationships - with owners and other brokers - many whom own their own properties.

a 2500 sq ft warehouse may not be the same. Every one has an opinion of what they need. I rent a 1 one room office or a 25,000 sq ft warehouse.

A deals a deal.
Web Reference: http://www.rentlaw.com
0 votes Thank Flag Link Fri Dec 3, 2010
If I'm working with a buyer and there are two units in the same complex and I didn't show one because it was less money in my pocket then shame on me. Any buyer treated that way should find a new agent quickly. Sure a higher commission is always better and trust me we work harder for our money than most people think but, our ultimate standard of practice should be to offer the buyer the ability to view any and all properties meeting their requirements. Personally I think the practice of picking and choosing to show property based on commission is unethical behavior.

That being said the seasoned agent versus the younger is also not always the best way to go. You should way all services provided including internet exposure (as thats where more and more buyers are shopping these days). Ask for references and see what other clients have to say about their services. I like the idea of the 5.5 as well. After all the listing agent does have the opportunity to sell it themselves although it rarely happens.
0 votes Thank Flag Link Fri Dec 3, 2010
Obviously it will make a difference in showings based on the answers here. Some agents say they won't show it and some say they will, so that equals less showings.

A similar but related situation:
Say I am an employer and want to hire a good experienced manager. The going rate is $300,000 but I want to pay $250,000 so that is what I advertise. Who will show up for the interview. Will all the same applicants show up? Will it be the less experienced applicants? When I hire one, will it affect the success of my company.

I may or may not get what I pay for as even the inexperienced people will show up for the $300,000 job. If I offer $250,000, the less experienced will show up, but it is likely that the good experienced people will probably show up at my competitors interview since they are offering the $300,000 position.

Likely, my company will not do as well if I hire a less experienced manager and I wonder whether the $50,000 I think I am saving will really be saved or cost me in the long run.

Thoughts?
Web Reference: http://JimSellsHomes.com
0 votes Thank Flag Link Fri Dec 3, 2010
Hi Trueman,
The fact is that many agents will hustle to show a 3% listings to their clients.
Number of showings = greater chance of success!

Why don't you suggest a 5.5% commission, with the listing side getting 2.5% and the buyer broker, 3%.
If your listing agent firmly believes 3% sells houses, let him prove it.
Best of luck,
Murph Plishtin
0 votes Thank Flag Link Fri Dec 3, 2010
Sadly, commission matters. Remember, the large majority of agents sell only a few properties a year - therefore, they likely want to maximize their commissions. Agents may be reluctant to show their qualified buyers properties offering less commission than otherwise equivalent neighboring houses. The agent with the strong web presence may draw buyers without an agent representing them so it may allow him to double lend it. My advice, web presence is crucial and if the agent will be using other means to attract buyers (i.e. Open Houses, Marketing Dollars, etc) it may not hurt to save a percent on the commission. Regardless, if the house is fairly priced it will sell.
Web Reference: http://www.AQHomeLoan.com
0 votes Thank Flag Link Fri Dec 3, 2010
It matters, and in some cases it affects the ttraffic of would be buyers because their agents chose not sho participate in a sale with less than "adequate" commission. It is not fair, but it is the nat.ure of the beast
0 votes Thank Flag Link Fri Dec 3, 2010
If a property is listed at a fair market value (not overpriced) then it will sell fast and easy. I do 1% listings if a property is priced at market or below. Last one sold in 2 days - the appraisal came right in and it was closed in 4 weeks.
0 votes Thank Flag Link Thu Dec 2, 2010
The bottom line is............if you like the agent, then you will trust her or him, and you will trust their judgement and want to do business with him/her.
Web Reference: http://DonaldLinden.com
0 votes Thank Flag Link Wed Dec 1, 2010
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