Question Details

Rep Chandler, Real Estate Pro in Oklahoma City, OK

Should my realtor take less commission to make a deal work?

Asked by Rep Chandler, Oklahoma City, OK Sun Oct 10, 2010

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Answers

276
Depends upon many factors. But, neither a buyer or seller have the right to expect it. Sometimes it makes sense, but entitlement is not a reason that makes sense.
2 votes Thank Flag Link Thu Oct 14, 2010
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
Below are well stated points, i will had my 2 cents....

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"?
2 votes Thank Flag Link Thu Oct 14, 2010
What part of the agents job should she not do?
2 votes Thank Flag Link Wed Oct 13, 2010
That's a question that should be decided entirely between you and your Realtor.
Web Reference: http://www.golftobeach.com
2 votes Thank Flag Link Wed Oct 13, 2010
Depends on your idea of less. I have given 0.5-1% before to make something happen. Remember a good listing agent spends quite a bit on advertising and marketing to get your home sold. Not to mention the time spent on all that online marketing and brochures.

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.
2 votes Thank Flag Link Wed Oct 13, 2010
Hi Rep. The answer would depend on the circumstance and you give none here. Since you represent yourself to be a contractor, does the Realtor in question represent many of your properties? Is the deal in question a one time thing or have you given the Realtor the exclusive right to sell for a Condo building or an entire new development? Have you used this Realtor as your agent for other/previous properties?

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?
2 votes Thank Flag Link Wed Oct 13, 2010
It should be left up to the Realtor. It doesn't hurt to ask but most realtors will see that there is no other way to get the transaction done. I have done it a few times for clients based on the information at hand. Should it be done on every transaction? Absolutely not!!
2 votes Thank Flag Link Wed Oct 13, 2010
Hi Rep!
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!
2 votes Thank Flag Link Tue Oct 12, 2010
Should your realtor take more commission to make their business work?
Web Reference: http://www.clovelake.com
2 votes Thank Flag Link Tue Oct 12, 2010
Rep
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?
2 votes Thank Flag Link Mon Oct 11, 2010
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
I think that if the Realtor is already paying for the purchaser's plane ticket - they should not have to forfeit commission to make a deal work.......

Good Luck!

If you like the answer - please consider making it a "Best Answer" !

Gerard Dunn
Associate Broker
Licensed in Maryland, Virginia and Washington, D.C.

Assisting Homebuyer's and Seller's for 28 years
703-216-9100
2 votes Thank Flag Link Mon Oct 11, 2010
It all depends on the scenario and how much is needed to make the deal work. If we are at an a absolute standstill and neither party will budge on price, one agent (or both!) may step up and help in order to bring the deal together. Honestly, most of the time experienced agents tend to negotiate very well and have a way of making things work for all parties. Without knowing the exact numbers, it's difficult to say, but you can certainly ask your agent if they are willing to help. Best wishes to you.
2 votes Thank Flag Link Sun Oct 10, 2010
Rep Chandler,

This is a question that you must ask your realtor. No one here knows what your realtor is willing or able to do to make the deal work.
2 votes Thank Flag Link Sun Oct 10, 2010
A good REALTOR is one who does what it takes to make a deal work. I am not saying that a REALTOR should automatically drop commision every time thats nonsense...but in the end its all about making deals happen and helping clients.
2 votes Thank Flag Link Sun Oct 10, 2010
This thread has been up for 2 years. Need some new stuff! Bottom line is that I am worth every penny that I earn plus more. Great Franchise, extensive marketing, etc. Would the person who started this thread take a cut in pay? You essentially get what you pay for!
1 vote Thank Flag Link Sat Aug 24, 2013
This thread has been up for 2 years. Need some new stuff! Bottom line is that I am worth every penny that I earn plus more. Great Franchise, extensive marketing, etc. Would the person who started this thread take a cut in pay? You essentially get what you pay for!
1 vote Thank Flag Link Sat Aug 24, 2013
Every situation is unique. If you are at the eleventh hour of a closing and it is make it or brake it time, and the amount is negligible, then it may be worthwhile.
1 vote Thank Flag Link Wed Dec 1, 2010
It all depends on the situation. I don't believe that we can be so ridged to say never. There are a few instances where if may be needed and I feel that if will come back to you in loyalty and referrals.
1 vote Thank Flag Link Wed Dec 1, 2010
No. Would anyone ask their doctor or any other professional to take less. You choose your doctor, mechanic and etc based on what others recommend. Why would ask a professional to decrease their pay. Realtors work very hard and long hours for their clients.
1 vote Thank Flag Link Wed Dec 1, 2010
I've given money back (by cutting the commission) to either GET a listing or to make a deal "work".

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.
Web Reference: http://www.rentlaw.com
1 vote Thank Flag Link Tue Nov 30, 2010
This is from the website http://staugustineteamrealty.com/TheStAugBlog/?cat=275

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 isn’t on the contract. When the the buyer buys the home and gains equity as the home appreciates I don’t recieve or benefit from that. And when the seller gets their payoff from selling the home, I don’t enjoy any of their equity gain. I simply get paid for the job that I was hired to do, and I don’t see a reason to pay for a repair who’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.
1 vote Thank Flag Link Tue Nov 30, 2010
Actually I have at times made deals work to ensure the home buyer or seller ultimately gets what they want however, keep in mind that is what we do for a living therefore you should ask yourself in your own career if you would take less from your employer working as much as 14 hours a day 6 days a week and unless the sale goes to closing will you get paid for your efforts. Just my opinion.

Regards,
Kim Stover-Schumacher , Texas Realtor
Schumacher TX Realty a Private Label Realty Company
214-762-0952 Cl
http://www.SchumacherTXRealty.com
1 vote Thank Flag Link Tue Nov 30, 2010
When we are only making 2.5% on the sale, and up to 1/2 of that could possibly have to be split with our broker, and then there are E&O insurance (like malpractice insurance for realtors) fees deducted, we have to pay income taxes on it (we work as 1099 employees/like a contracted employee) - well would you come remodel my bathroom, put in the time& labor on the job only to have me ask you to waive those fees cause something came up and I don't want to have to cough up the cash for it? Would you do it for free? I think anyone in business would say no. Everything is up for discussion, prior to a seller/agent or buyer/agent contract...once I do my job - I expect to get paid!
1 vote Thank Flag Link Mon Nov 29, 2010
Would you ask a Electrician the same question? Whom does the less commission benefit?

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.!
1 vote Thank Flag Link Mon Nov 29, 2010
You get what you pay for. You should choose a realtor based on their qualification and now how much they can contribute out of their pocket to the real estate transaction.
Web Reference: http://www.DavidNewHome.com
1 vote Thank Flag Link Mon Nov 29, 2010
I had to make it 220 answers just to make it an even amount. I think the question has been answered.
1 vote Thank Flag Link Sun Nov 28, 2010
This question comes up more often than you can shake a stick at. The regrettable thing about this is that most people put the burden of the deal on the intermediary under these conditions. Yes agents have been known to make concessions on their earnings just to make the deal work. However, the obligation of such concession doesn't bode well, particularly after the work has been done and the commission earned. This is not different than someone going to work one day and being asked by the boss to take a pay cut -- after two weeks of work! The agent can do something for the deal to work out, but please don't ask the agent to take a cut just to appease you, the seller, or "help" the buyer when other alternatives and resources are at your disposal. After all, the agent did their part to make the transaction work out, the asking of a reduction -- regardless of the amount, isn't a barganning chip for last minute coersions.
1 vote Thank Flag Link Sat Nov 27, 2010
I'm curious about why a reputable businessperson would even ask this question? When I tell someone I will pay them a certain amount of money for doing a job, I never go back at the end and suggest that they "should" take less in order to complete the deal, except where they clearly have not done their job. I try very hard to be as good as my word. Though I have never done it, there MAY be unfortunate occasions when one might ASK the other party to reduce the price later, but an honorable businessperson would never imply that the other person "should" make the reduction.

Best,
Ron
1 vote Thank Flag Link Sat Nov 27, 2010
The last sentence shoud read....You could have negotiated the commission before hiring your agent (although if you did, you would probably have a different agent and no offer, or a lesser OFFER to consider).
1 vote Thank Flag Link Sat Nov 27, 2010
It's your house do you want to take the deal or not? Your agent got you an offer in this market that's great ! The time to work out the commission was when you listed the property not after you get an offer How would you feel if the agent asked for a bigger commission now??
1 vote Thank Flag Link Sat Nov 27, 2010
I like to get that out on the table at the time the listing aggreement is signed. As agents we do a large part of the work to get a house sold that the seller nor buyer ever sees. Our only job is to be a conduit of information between two parties. Agents want the deal to work as bad as the seller or buyer does. I am certain that most clients dont have a clue as to what the net number an agent ends up with depending on what their deal is with the broker. In my experience, the client is more apt to find another way to close a deal rather than ask an agent to take a hit once they understand how we are paid and all the costs incurred in the transaction.
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.
Web Reference: http://century21beggins.com
1 vote Thank Flag Link Fri Nov 26, 2010
I had a situation when my Buyer couldn't close, because of tough guideline for FHA loan. A HUD was $1400 short and everyone points on the Agents. Selling Agent refused to participate, so I took a hit. Otherwise my Buyer would lost his deposit (it was REO). I asked him if he will split it with me and he said Yes, but I never get anything from him, so my commission was $1400 short on this deal.
1 vote Thank Flag Link Wed Nov 10, 2010
ya, where is the guy who asked the question? He's probably laughing his head off right now because everyone knows it's a bone of contention and this is proof. So im done. He was just one of many who like to play with us to see what we'll do.
1 vote Thank Flag Link Wed Nov 10, 2010
I see this is a national discussion. As a realtor, I always find it offensive to discuss and have my payment an issue at the closing table. I don't even want the escrow agent to ask me, "where do i send your check?" It is the only industry where payment is revealed to all parties in writing or even considered depletable during a negotiation. Car sales don't have the commission for the salesperson revealed. So we are one step below car sales people! How about a proposed change to the NAR for a separate form, or brokerage agreement to the HUD 1? -aND to have discounts to the pay appear on the HUD as a discount and write off for cost of sale?
1 vote Thank Flag Link Tue Nov 9, 2010
Every situation is different. However, if I have an instance where a seller and buyer are close, but just can't get it together and having to give up a small amount of commission for a sale versus no sale at all, especially on a property with very little action, I think it is just good business to get the deal together if you don't have to give up too much. The sellers and buyers usually appreciate the gesture as well, but I do explain to them what I am sacrificing for THEM.
1 vote Thank Flag Link Tue Nov 9, 2010
Please delete this rediculous question. I suppose some of you have nothing else better to do?
1 vote Thank Flag Link Sat Nov 6, 2010
If an Agent is quick to negotiate their own commission...how quick do you think they will be to negotiate your money??!
1 vote Thank Flag Link Sat Nov 6, 2010
Let cooler heads prevail. Yes daily, I get alerts about New answers. These are troubling times for all, including my husband who is a physician.... everyone negotiates. If we all don't cooperate, as a group, the me and all will go under. Stop the rhetoric of I am special, I work hard. So do all . Wake up people, what is good for all is good for the end game. It's not socialism, it's called survival.I think everyone will have to redefine our conrtibutions to society. At the end of the day, what is good for the benefit of all, will benfit us all.
1 vote Thank Flag Link Fri Nov 5, 2010
Not only will I cut my fees, I will also pay for your plane ticket if need be......
1 vote Thank Flag Link Fri Nov 5, 2010
Because, the funny thing is: the principal can make the deal work just fine, if they wanted to.
1 vote Thank Flag Link Thu Nov 4, 2010
Rep,

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.

Sincerely,
Francesca Patrizio, Broker, ePro, SRES
Francesca@PatrizioRE.com
732.606.2931
Web Reference: http://www.PatrizioRE.com
1 vote Thank Flag Link Tue Nov 2, 2010
you should pay the price it will take to make the deal work, when you go to mcdonalds and they tell you you owe $3.59 do you ask the counter person to chip in 30 cents because you don't want to pay $3.59?
1 vote Thank Flag Link Mon Nov 1, 2010
I see most of these answers are from realtors. As a seller I say YES they should, most likely they will get my listing for a whopping 6% or more, than put up a sign and put it on the mls...maybe make a cheap computer generated brochure. When it doesn't sell they will come and instead of saying I really don't have a client base, will start to give you all the problems with your house and neighborhood and your pricing. All of these were there when they were being so "exicted" about your property and they are the one who usually come up with the pricing. Personally I find most agents to act like they are doing you a favor - and if my employer ask me to take a pay cut to make sure I have income - I certainly would do it. But on the other hand I get my salary over a years time, not in one usually very large lump sum and a GOOD agent will get many of these through out the year. So if you are so greedy that you would give up even any commission - that speaks for your ability already. The BEST agent I ever had cut the commission on the day we signed the contract - why because he knew he was going to sell the house quickly and his overheard was going to limited - he had contacts and clients looking to buy even in a recession - sold before the sign went up or it was in the mls - it is so true - in real estate the money is in getting the listing - get signed contract and sit back and wait for it to happen. SO YES WORK WITH YOUR CLIENT AND GIVE A BREAK ON THE HIGH COMMISSION YOU RECEIVE.
1 vote Thank Flag Link Thu Oct 28, 2010
In the 13 years in the field I've been in that situation more than a few times and for several reasons...... I can't yet say I regret it. It is a good feeling to have the opportunity to help out when necessary. But honestly, the best thing yet is the referrals it will get you to "be there" when you're needed.


If you like my answer please let me know.
1 vote Thank Flag Link Wed Oct 27, 2010
As Realtors we have been trained to protect our buyers and sellers from problems associated with the property, the banks, title company or anyone that participates in your transaction. Our job is to get you the best deal possible through negotiation. In addition, we have personal liability.

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.
1 vote Thank Flag Link Wed Oct 27, 2010
As a realtor, we work hard to make deals close. We organize inspections, negotiate contracts, communicate with all parties, and flex when we need to. In a few cases, I have taken less commission if the seller is completely maxed out. However, I have to make sure that my broker is on board as well, and privvy to the commission reduction.
1 vote Thank Flag Link Wed Oct 27, 2010
I do not cut my commission to make a deal work with two exception. If the buyer is maxed out and is in a real need of funds to help close I will consider it. Same on the selling side if they are not making a profit I will reduce my commission to help them out.
1 vote Thank Flag Link Wed Oct 27, 2010
Perhaps it depends on how much time they have invested with you to find the deal you have been looking for.

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
1 vote Thank Flag Link Wed Oct 27, 2010
In today's market, Realtors are sometimes taking less of a commission to close the deal. But not as a regular practice. We work hard for our money. And if commission is lowered, that may mean other brokers won't even consider showing the property.
1 vote Thank Flag Link Wed Oct 27, 2010
I have and will continue to offer a commission break if it means the difference between a deal working and not working. However it is not something I do as a matter of course--any more than I expect someone doing work on my behalf to cut their price. I put a lot of my time and financial resources into marketing and selling a house for my sellers without any guarantee of a return, and like any other professional feel I should be paid under the terms of the contract that the Seller has signed.
1 vote Thank Flag Link Wed Oct 27, 2010
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