This should be addressed early in the discussion before there is a specific property. I presume that your are asking as a buyer, not a seller and that your think that indirectly you as a buyer is paying for the buyer agent commission. if this was about the listing agent, that discussion should have happened early on about reducing commission if there is a buy and sell discount or sells fast, if under any circumstances you as the principle would pay lower commission than what is in the listing agreement.
Half a percent discount on a 2.5% gross commission is 20% discount, add to that the company split that the broker still wants their whole share and that 20% becomes a 35% discount.
Another point, not to be too snarky, but how many houses did the agent show you where they recieved zero commission? You know, look at 35 houses, write low offers on three and one comes together. Only that one that comes together the agent gets paid!
As a listing agent, what if the seller, says, Oh my cousin didn't know that I was thinking of selling, will you give me a discount on the commission even the listing agreement says "X"?
It is up to the agent to change an commission agreement, but in the end we don't make squat until a home sells at closing. If I have to lose a few thousand to make a deal happen I might do it so finally get compensated on a deal, but it all depends on the deal, client, time invested, etc.
Is the property in question being sold to a direct buyer or is this a co-broke situation? Again, no details to your question which makes me think you want (on some level) to have the brokerage community apply pressure to your Realtor in order to get him/her to drop their agreed to and signed commission.
Most Realtors will do what needs to be done but each situation is different. We have no idea if what you ask is your common practice after you sign for exclusive right to sell. Why not clarify your question.
As I read the answers below, the resounding response throws your question back at you. Would you accept less for contracted and agreed to work that you've completed in good faith?
A realtors commission should not come into play "For making a deal work". You have signed a legal binding contract with that Broker to pay him a certain % if they market your home and find a buyer, which sounds like they have. It is not the Realtors fault if that Buyer is coming in lower than you wanted. He has done his job of what you hired him for.....now you have to decide how bad you want to sell and try to negotiate with the buyer until you come to a meeting of the minds!
I see your a contractor....would you cut your costs after you've signed a contract to build another room on a house, supplied the materials and manhours and when you were just about finished, they ask you to cut your costs you agreed upon........I don't think so.
I wish you the best and hope it all works out for you!
This is a very interesting question.
For that matter, what about title, escrow, inspectors, the buyer's lender, the buyer?
I find it interesting that apparently your FIRST question is should the Realtor take less commission.
I am sure that in your work as a contractor you have had to make concessions in order to keep a customer happy, right? Why would you do that? To avoid legal problems? To create goodwill? To generate more business?
My recommendation would be to look at the big picture. In my company we have a saying "win-win" or no deal. What can you do to make it win-win?
If you like the answer - please consider making it a "Best Answer" !
Licensed in Maryland, Virginia and Washington, D.C.
Assisting Homebuyer's and Seller's for 28 years
A hint from an old broker - never go to the closing. If you don't go to the closing, they can't take any of your money at the table.
Makes a good read and could add some value to this discussion.
The situation comes up some times when unexpected repairs or fees arise near the end of a transaction.
Quote: "From a personal standpoint, my name isnâ€™t on the contract. When the the buyer buys the home and gains equity as the home appreciates I donâ€™t recieve or benefit from that. And when the seller gets their payoff from selling the home, I donâ€™t enjoy any of their equity gain. I simply get paid for the job that I was hired to do, and I donâ€™t see a reason to pay for a repair whoâ€™s responsibility is already covered in the contract. "
My personal view is that this is situation based and cannot be generalized. Fairness for all parties involved must be determined.
Kim Stover-Schumacher , Texas Realtor
Schumacher TX Realty a Private Label Realty Company
Do you think after an Electrician gives you a bid. You accept. He/She performs the work and then you want to ask to renegotiate his/her fee after the work is done. Do you really think that would fly? Your a contractor, right?
Now, my answer would change if you had a partnership with a Realtor to sell your listings and you and the Agent agreed upon a lesser commission so they could exclusively sell your listings and you were both scratching each others backs and the lesser terms were agreed upon prior to listing. Now that would be o.k.!
There are many ways to get a deal closed and that becomes our job to get creative and negotiate a close that satisfies both parties.
In this market absolutely not, although just last week a Realtor that I am working with as a referral was forced to do so. We are working 110% harder, spending much more money on marketing, encountering so many more 6-month listings that are expiring (since days on market tend to be greater than 6 months) with sellers chosing a new Realtor (because it is almost always the Realtors fault that a property didn't sell) and the actual closure rate of home for sale declining. In my experience if a buyer and seller truly want to make a deal work, they will find a way.
Francesca Patrizio, Broker, ePro, SRES
If you like my answer please let me know.
When you hire a Realtor our fee is stated at the beginning of the transaction. My experience has been that asking the Realtor to cut their commission is usually the path of least resistance so that is the first avenue that is explored. My experience has also been that buyers and sellers have a way of finding solutions when it is a "make or break" time.
Agents need to pay all of their living and working expenses.
Also How much buisiness have you already referred to the.
If you are a good client and repeat customer I can see an agent giving a small break. or buying a nice house warming gift certificate to Home depot etc. WE are all looking for people to be loyal to us and not use us for free. You have to pay the Plumber, handi man and electrician and car repair man you need to pay a good agent. Word of mouth is the best form of advertising SO I will work with you if you can bring me a few more nice people who want to buy or sell or lease. ColetteRosati.com 602 750 3233