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
Hi Rep. Tons of answers here. Any to your liking? I love these questions that give no background but want an answer anyway. You're a contractor but are you referring to a current project of yours and the Realtor you want to use on the project?

Perhaps you are a buyer that has low-balled an offer and are trying to stick it to your own Realtor by trying to get them to cut their commission. Should they take less? I don't know. Could you raise your offer?

When there are no specifics, conjecture rules.
0 votes Thank Flag Link Tue Nov 30, 2010
You can say no, kill a deal and show your greed. It all depends. Depends on how much you are asking to give, the reason why etc. - How much of your comm % wise?

IS the seller still taking a profit?
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0 votes Thank Flag Link Tue Nov 30, 2010
We normally don't do it, but we have had to in some certain situations.
0 votes Thank Flag Link Tue Nov 30, 2010
Agents work very hard, it is the only business where you work, pay for advertising, printing and if the house does not sell the Realtor does not get paid. It is not up to the realtor to take the cut.
0 votes Thank Flag Link Mon Nov 29, 2010
Lets get the question out already!!

Mildred Valentin,Realtor
0 votes Thank Flag Link Mon Nov 29, 2010
Real estate is not a nonprofit industry; Realtors are in the business to make money. Also Realtors work in a contractual environment. Once all parties involve agree to the commission there is no reason the Realtor should accept less. If the buyer cannot afford a place he/she should not get into a contract to buy a place. If the price drops to a point when the transaction will have to be a short sale then obviously new agreements will have to be made.
0 votes Thank Flag Link Sun Nov 28, 2010
so much for , " I will do everything in my power to get your home sold" BS
0 votes Thank Flag Link Sat Nov 27, 2010
No, on the contrary...i think you should add another useless middleman...
0 votes Thank Flag Link Sat Nov 27, 2010
Daniel,
Would you take less pay for current job? That's what I thought!
0 votes Thank Flag Link Sat Nov 27, 2010
I bet your realtor told you that they will do everything possible if you were to list. I bet your realtor has since told you to drop your price.

Everything is negotiable. The realtor should take less commission to get the deal done
0 votes Thank Flag Link Sat Nov 27, 2010
By that logic, buyers, brokers will have taken two hits - one because the deal is smaller, and then to take a smaller piece of the smaller deal.

I go back to - you don't like the deal, then, go wait for another one to come along.
0 votes Thank Flag Link Fri Nov 26, 2010
I am not a realtor, but a buyer and I agree with Kathy B. In this market, realtors should be willing to take a small loss to make a deal go through. Its a buyers market folks, lets get real!...and yes its hard work, but we are all taking a hit in this economy!!! We are in process of asking our buyers and sellers agents to take a small loss and it they say no, we are walking away and buying a 'for sale by owner' house.,. and they will have lost a sure sale/comission!
0 votes Thank Flag Link Fri Nov 26, 2010
It might be different if I received a discount from my advertisers or MLS fees and office fees to name a few things which keep my business running, but I don’t and no agent out there should either.
Do contractors take less money for providing their service?
0 votes Thank Flag Link Wed Nov 10, 2010
I would only take less if upfront the seller and I looked at their costs and we agreed to make it work I would take a smaller commission. I would NOT do it at the end of a deal. The numbers are the numbers and a good agent should do their homework with the client to see if a problem will arise BEFORE the listing agreement is signed! All options should be talked about upfront- when to reduce the price, what seller contributions are possible, etc.. Then an Educated decision is made by all parties. Selling/Buying REO's already require agents to take less but you know this upfront. Educate Educate your Clients!!!
0 votes Thank Flag Link Wed Nov 10, 2010
People look at commission and think negotiable. If Realtors charged a flat fee their would no discussions on taking less. We work hard for our money and should not be expected to take less. I would turn that question around and ask the buyer/seller the question. If your company lost money on a deal would you take less money on your paycheck to make up the difference? My answer 99% of the time is NO. There are circumstances that I have reduced my commission but they are few and far between.
0 votes Thank Flag Link Wed Nov 10, 2010
This would depend upon the situation.......
0 votes Thank Flag Link Wed Nov 10, 2010
NO Why should they. They have to earn a livivng
0 votes Thank Flag Link Wed Nov 10, 2010
I worked a short sale this year that was so intense and long, I ended up making 47 cents per hour on the entire deal once it closed. I am NOT kidding! The seller wanted money..the buyer wanted sellers personal property (refrigerator etc), the sellers boyfriend did not want the sale to go thru at all and was a disaster, and all of this happened at the very end, like, the last 4 days of the transaction !!
Looking back, I wish I had let the deal slide to hell & off the table, as I would of, at the very least ,got a huge laugh and not be sitting here, remembering how I screwed myself ,to make these people happy for one moment..
I therefore sescind my statment of 'yes, give your hard earned commissions away'...to state," throw your clients away and get rid of these thieves. I now say. Hell no, NEVER reduce or talk about what was a separate contract between the seller and Realtor, that was agreed to prior to any purchase or sale between the sellers and buyers.
If the sellers can't afford to pay the commisisons promised prior, then why should they be able to 'trick you' into working hard for them on the contention of being paid such, and then later... stealing your money by strongarming you due to their bad finacial caluculations later? We say yes sometimes ONLY due to the fact WE NEED the money and some money is better than NO money. I say, give me a rich old man first and I will marry him rather than pimp myself out to these sellers and buyers that I truely and hate to admit, dislike..
0 votes Thank Flag Link Wed Nov 10, 2010
If Trulia would allow me to have a one word answer, it would be no.
0 votes Thank Flag Link Wed Nov 10, 2010
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
Contact
Who is your agent, we would like to ask him that question ourselves...
0 votes Thank Flag Link Tue Nov 9, 2010
So many answers and viable concerns. Again, many people as a group take pay cuts, reduced income etc, to survive. GMA had a steel worker in Ohio who wrote a story about those, who in their plant, took pay cuts, hours cut, as a whole to make sure everyone had income. Again, cooperate as a whole. This question can never be answered to the fullest since full details were not disclosed. Most answers I see are about the "me."
Unless you are on "Wall Street,' that rhetoric holds no value.
0 votes Thank Flag Link Tue Nov 9, 2010
Like many have said, it really depends. If things are close and it makes financial sense then yes. However please remember, that commission is how your agents pays his bills and takes care of his or her family. In a tough real estate market a few hundred or perhaps thousand dollars can mean everything to your agent.
0 votes Thank Flag Link Tue Nov 9, 2010
I don't do it. I negotiate the best possible deal for my buyers or sellers. If I won't protect my own commission, why would I protect my seller or buyer's equity position. I have seen many times where we didn't budge and my clients got a way better deal and the real perosn hurt was the other agent.
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0 votes Thank Flag Link Mon Nov 8, 2010
Commissions are negotiable. It is possible for a Realtor to take less to make the deal go through but all involved parties must make it happen. Selling Real Estate is not an easy job in this today's market!
0 votes Thank Flag Link Mon Nov 8, 2010
Because, the funny thing is: the principal can make the deal work just fine, if they wanted to.
~~~~

That's right Mack!!

Just to chime in on the original question again, at the risk of bothering Frank, who thinks we have too much time on our hands to be here, yet is here himself. . .. :)

I have been negotiating a 800,000 purchase for the past 2 weeks. The buyers started out by asking me if I could do "something" on the commission, since they bought the first house they saw and I didn't really have to do any "work". This has been a real hair pulling 2 weeks. The listing agent is incompetent and unintelligible, and I have been fielding phone calls from the SELLER, who also thinks the listing agent is incompetent and unintelligible. If this deal ever flies, which I have my doubts, it's going to be one of the most difficult easy sales I have ever made.
0 votes Thank Flag Link Sun Nov 7, 2010
Hey Evanston,You know, in this market, just networking and sharing is a good thing. My son went to Northwestern and is an attorney in Chicago. Have friends there as well. Already have had 2 thumbs on responses. Anyone willing to work together? Referrals, name of game and do negotiate with generous referrals. Yes more than 30%.
Oh my, just wanting to make deals work. This has gone beyond Rep Chandler, I feel a connection to other agents, you know people.

A moment ago - Delete this answer
0 votes Thank Flag Link Sun Nov 7, 2010
@ Frank. If you're unhappy with continuing to see answers to this question, feel free to turn off your e-mail alerts so it no longer bothers you.

You've commented four or five times that you feel this question is rediculous (sic), and yet it continues on. You should do the same.
0 votes Thank Flag Link Sun Nov 7, 2010
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
In very few circumstances.
0 votes Thank Flag Link Sun Nov 7, 2010
I think that the circumstances is that someone wants to play a game with answers. I totally enjoy answering valid questions but this one is out of control. Not the first time! And why haven't we heard from the person who posted it?????
0 votes Thank Flag Link Sun Nov 7, 2010
Maybe. It depends on the circumstances.
0 votes Thank Flag Link Sat Nov 6, 2010
It depends on the reason such a question should be asked at all.
(1.) If the buyer and seller are not in agreement of repairs needed, and those costs might be at the cost of seller, and the seller is broke, then, if the sellers Realtor wants to contribute funds to the seller, then I say, YES,the Realtor should take less from the sellers commission offer, if the commission is paid at a normal and customary listing commission, to make the deal work...but, it depends on how much..
(2.) If the money is asked of, from the buyer, to make the deal work, then I say NO.
The commissions are usually governed and paid by the seller, therefore only the seller and Sellers Representative, can reduce the commissions. Buyers agents do not govern commissions paid for by the seller and usually deserve every penny earned. The BUYER should never ask for contributions from the Realtors to buy thier property. I know many buyers who 'have' strong armed Realtors to do so, after they entered into Purchase agreements.
0 votes Thank Flag Link Sat Nov 6, 2010
I do not think they should take less. Here is why: The seller signed a listing agreement with the agent and I am sure the seller negotiated then for the agent to reduce the fee. Now the agent has been successful in getting an offer on the property - the goal of listing it in the first place.
0 votes Thank Flag Link Sat Nov 6, 2010
That's a vague question....how much do you want them to reduce? My general answer would be No, they shouldn't take less. If the Realtor has completed there job per their agency agreement then they should be paid the compensation per the agency agreement. However, if you asked "Should my Realtor consider taking less a commission to make a deal work? I would say Absolutely. Good Luck
0 votes Thank Flag Link Fri Nov 5, 2010
I get it! Rep Chandler a Contractor Oklahoma City, OK (a Builder) asked this question. I have experienced this with Builders before. Why don't they just hire a full time staff and pay their poor employees minimum wages. That way they will feel warm and fuzzy because they have taken advantage of someone else! Don't get me wrong, there are good ones, but to ask this question I can tell the type builder this guy isn't. I feel for the poor REALTOR that is trying to sell his properties.
0 votes Thank Flag Link Fri Nov 5, 2010
The seller contracts with Realtor for X$$. Seller agreement done at that time. Listing agent agrees to this too.
Then listing agent goes to work, brings "ready, willing, able buyer", buyer and seller come to terms then about price and sign that contract. Realtor works with transaction and "bump" buyer wants repairs, seller won't repair and then these parties want Realtor to pay....that is typically when I see this question come up. I don't have in my contracts "Realtor to pay repair costs of sellers home" but all business decisions are up to the Realtor, have I never...no. Every business has a courtesy credit they can choose to offer their good customers, so do I. Remember, we are running a business here not just order takers...when you take your business seriously, so will your clients.
0 votes Thank Flag Link Thu Nov 4, 2010
In these tough times, Unfortunately I had a situation like that and to make the deal work both the Selling Agent and Listing Agent took a small cut!
0 votes Thank Flag Link Thu Nov 4, 2010
Yes contractors work for less all the time. Hard market, hard work and hard negotiating.
0 votes Thank Flag Link Thu Nov 4, 2010
Francesca Patrizio has a good point there we are working harder than ever with this recession!

Regards,
Mildred Valentin
0 votes Thank Flag Link Thu Nov 4, 2010
Would you work for less as a contractor?
0 votes Thank Flag Link Thu Nov 4, 2010
It is a reasonable question and worthy of a serious response. I think cutting a broker's fee might be done in the event that there really is an impass, there is a full fee agreed to at the begining, and the broker feels it is in the best interest of all involved to do so.
I do not as a matter of course include my fee in the negotiation, but without the details I cannot say whether it is appropriate or not to ask your broker to reduce his/her commission.
0 votes Thank Flag Link Tue Nov 2, 2010
I normally don't do this, however, depending on the circumstances, might consider it if I got both sides of the transaction and the buyer/seller both had done all things to make it happen. If the seller is being unrealistic, I would not cut it. If the buyer is being stubborn, I would not. My opinion is this: If a seller wants to sell and a buyer wants to buy, they will find a happy point for both without asking the agent to cut their pay. If either had been past clients or referred business to me before, then more likely I would. It's a case by case basis for me but no, I don't think a realtor should take less commission just to get the deal to work. Especially if the seller and agent agreed on the commission rate at the time of the listing. What's fair is fair. If you employer agreed to pay you X amount of dollars for a job and then approached you and asked you to cut your pay, would you? My guess is you would not.
0 votes Thank Flag Link Tue Nov 2, 2010
Heads I win tales you loose.
0 votes Thank Flag Link Tue Nov 2, 2010
If your Realtor is doing the job he or she should in your representation , and the deal is close enough to walk away with something and both sides are happy ,and these days closing are slim in some market areas, and the need to take a lower commission to finish a deal and as long as the agent is treated fairly then yes. As my broker once said sometimes you just have to wipe the blood off and keep going.
0 votes Thank Flag Link Mon Nov 1, 2010
Obviously this site has turned into a therapy session......Indicative of the frustration out there of all parties concerned. Since most of us do not work in the Oklahoma City market area and don't know the circumstamces, our answers were for our own benefit. To VENT. Rep Chandler, please let everyone know how all worked out. Let's all remember, just about everything is negotiable, especially in today's market!
Let's hope so, otherwise we will see worse gridlock than now.
0 votes Thank Flag Link Mon Nov 1, 2010
Often times clients are put in this predicament because borrowers loan agents did a bad job calculating closing cost or tried to impress the client with low but inaccurate fees. If this is a common occurance then thier may be an issue with the lender and not the borrower or realtor. Often Clients shop cost when it comes to house shopping and choosing a loan agent, this can easily back fire. We would not expect to pay the same cost for Nordstroms dress shirt as we would for a Walmart dress shirt, because of the difference in quality. This applies for home financing shopping, One of my sales pitch is to inform my prospective clients who is the cheapest in town. Clients pay for what they get, you can save 1500 dollars and lose sleep and be biting your nails until you get the official decline, or a client can use an experience loan agent with who has a knows upfront wither the deal is good or not and these type of last minute glitches would be a rare occurance. When looking for a loan agent or company the best advice you can receive is to choose a loan agent that has a reputation of honesty, integrity and knowledge.
0 votes Thank Flag Link Thu Oct 28, 2010
I guess the best question to ask is : Do you take a pay cut to do the same work that you do. Although, under extreme circumstances I have reduced my commission, I typically do not. I work very hard for my clients and I have disclosed my charges at the beginning of our relationship. My clients do not wish to take a pay cut at their job just because their employeer wants them to. We are professionals who work very hard for what we do. I still have a mortgage, bills and family to support. I do not feel that I am trying to do anything but earn a living just like my clients. If I reduce my commission for every client soon I become a discount broker who is not able to provide the highest level of marketing and expertise because I have run out of money for my budget. Then who will reduce the fees for me? Nobody.
0 votes Thank Flag Link Thu Oct 28, 2010
It all depends on your realtor.
0 votes Thank Flag Link Wed Oct 27, 2010
I deal with a lot of builders and sometimes to make the deal close you can consider a commission cut! This does not happen all the time! An agents time is precious and a reminder that they put alot of work and effort into working with there Buyers. If there is a commission cut to be considered I would advice you to also discuss this with your broker and get it in writing! I have closed deals like this and sometimes you might loose a little upfront but gain so much at the end, like referrals that lead to more business.

Regards,
Mildred Valentin, Realtor
Exit Realty Van Zandt
0 votes Thank Flag Link Wed Oct 27, 2010
It really depends on the nature of the transaction. However, as a general rule, I think agent should not cut their commission to make a deal work. Yet, there are situations in my opinion where it might make some sense. I typically will take on a transaction cost (like the cost of a necessary repair) if that becomes a sticking point for the buyers and sellers. However, I will only do so if I feel that the parties have negotiated in good faith and there is good chance my doing so will close the transaction. I usually never cut my commission if asked by the seller or buyer. My commission is on the table only if I make it so...Again, each transaction is different, and the agent needs to have enough confidence in the parties and process to make a commission reduction beneficial to everyone involved.
0 votes Thank Flag Link Wed Oct 27, 2010
In general, the industry is changing. We do listings for 1 %. The caveat is that the house must be priced 'at market'. If a seller wants to be greedy on the sell price, but wants the broker to take a cut, I walk. Let a more foolish broker work with them.
0 votes Thank Flag Link Wed Oct 27, 2010
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