Home Selling in 70115>Question Details

Nola Johnny, Home Seller in 70115

I am a property investor and buy and sell a lot of property every year. I am pretty happy with my agent, but

Asked by Nola Johnny, 70115 Thu Jul 3, 2008

I wanted to know what constitutes 'standard industry practice' in terms of commissions for agents working for developers. Given the volume of property I bring this agent, would it be acceptable to split the sales commissions 3% buyers agent / 2 % my agent - or is this likely to offend? Do agents generally take much notice in the commission % when looking at property for their clients ? THANKS!

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Katherine Racine’s answer
If you have an established relationship with your agent you should feel comfortable posing the question with him.her, but since you have posted it here is my take on the matter.
The listing agent is bearing the costs of marketing your homes to the public and the real estate community and in most cases also must share the commission with his/her broker and team members. You could perhaps draft an agreement whereby the first 3 homes pay the full 6% and the next 3 pay 5%, or perhaps the agent would agree to accept a reduced commission when serving as dual agent.

A quality agent will put their client's needs ahead of the commission rate. If there are 20 properties that are largely the same and meet the client's criteria then the commission rate may come into play as a criteria to narrow down the homes they show to prospective buyers.
If your homes are priced competitively and are of high quality, agents will be glad to show them!

Anyhow, if you decide to explore your options, it would be my pleasure to schedule an interview. Contact me at kracine@kw.com.
0 votes Thank Flag Link Thu Jul 3, 2008
Ever heard of if it's not broke, don't fix it? In your case, sounds like your Realtor is doing a good job for you and you are making the profit you must have wanted otherwise, you would not be using him for all those transactions), then why would you want to cut his commission?

A good realtor is hard to find and it's tough to build a trusting relationship; honor that and honor the person who help you build what you have now.

Yes, not to mention how difficult it is now a days to sell a home.

Sylvia
2 votes Thank Flag Link Fri Jul 4, 2008
Sylvia Barry,…, Real Estate Pro in Marin County, CA
MVP'08
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Why do people ask question that they should already know the answer to? If you were asked the same question would you be offended? If your Realtor is doing a good job he should be compensated for it. Regardless of how much the home is or how much buisness I get from a person I have expenses to cover. With the rising prices you would think that agents would start charging more commision.
Just remember, You get what you pay for.
1 vote Thank Flag Link Sun Jul 6, 2008
Agents do look at commissions when showing proeprties. In a tight market they look more. This is the truth. This market we never get 6% and prices are lower than most areas. I would not show a property bacause of a commission but we all notice in New Orleans. 2% on an 80k home is not that much.
1 vote Thank Flag Link Fri Jul 4, 2008
builders usually pay 1% to the sellers agent, in new construction because he knows that thousands of real estate agents will pimp themselves out to get the business!
0 votes Thank Flag Link Sat Jul 5, 2008
There is no "standard of industry practice". By law all commissions are negotiatable. If the business is growing and your doing well why take from those that support you. Everyone has the same process of evaluating their worth. Am I getting screwed here. Am I appreciated and compensated. Many investors actually pay bonuses to agents that bring them deals in an effort to have that continue.
0 votes Thank Flag Link Fri Jul 4, 2008
Jed Lane; Fog…, Real Estate Pro in San Francisco, CA
MVP'08
Contact
Nola
I don't know the specifics of your business, but speaking in general terms the listing agent bears the brunt of the time, effort and investment in marketing properties. They assume ALL the risk; we are not paid until escrow closes,

In Keller Willaims we have a culture creed, and the number one creed is this: win/win or no deal.

How does your relationship with your Realtor work. The tough part is that you don't know how many times this REaltor has gone above and beyond the call of duty to protect YOUR interests.

So far as selling office commission, I get paid my rate no matter what because my buyers sign an agreement.

To get to the point, is your current REaltor helping you net the most out of each transaction? That is what you need to talk about. Commission is just part of the picture.

Don't cut off your nose to spite your face.
0 votes Thank Flag Link Thu Jul 3, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
The agent's commission is negotiateable.
Yes! You as the consumer can negotiate your agent's charge.
Don't be shy.
0 votes Thank Flag Link Thu Jul 3, 2008
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