Home Selling in Oceanside>Question Details

Sean, Both Buyer and Seller in 92056

What are your thoughts if you were asked to list a house At?

Asked by Sean, 92056 Sun Dec 2, 2007

2.5% for the listing agent and 3.5% for the seller’s agent?
2% for the listing agent and 4% for the seller’s agent?
But this one had incentives for the listing agent of $2,000 with increments draw in the sand that you know you could reach at least the first one if you worked on it.
Market value
$430,000 to $450,000
For every $10,000 you get $2,000
Line in the sand for your first $2,000= $440,000
I know you would like this one.
3% Listing and 4% Buyer

Help the community by answering this question:


First, I do not know your market. (disclaimer). You may not be aware that fees vary from area to area, so I would be surprised if you actually receive a pat "I like proposal A!".

I am assuming that your goal is to maximize your profit when you sell, right? Califl. Association of Realtor Buyer survey shows that 90% of the time, the buyer sees the home they purchase with a Realtor, so you definitely need to attract Realtors, who most of the time have the buyers.

You may be unaware that Realtors sign a Code of Ethidcs when they join the National Associaiton of Realtors. Part of the Code prohibits us from "steering" clients. That means that if there was ONLY an above-average commission, that alone will not cause a Realtor to show a property. However, combine above-market commission with a well-prepared property offer our clients value, then you have a pretty powerful combination.

So far as the "sliding scale" approach goes, there are two sides to your idea. One is that, for listing agent, technically I think you could offer them an incentive. However, There may be ethics questions regarding compensating the lisitng agent for a higher price based on the MLS rules. (everyone in the Realtor community wants a level playing field).

However, for you, this is a one or two time project, selling your home. For us, buying and selling homes is our livihood. In most cases the fee negotiated by the seller and listing agent is split equally between the listing office and the selling office. If word gets out that the split is not equal (this is called a variable commission rate, which also applies to other arrangements), it can create bad relationships between Realtors.

In the sale of a property the first part is to attract a buyer's agnet, then a buyer, then a lender who will fund the loan, then a appraiser that will certify that the property is worth the sales price. Given the current market conditions you can imagine that lenders are anxious about making a loan for more than a property is worth.

So I hate to upset your theory, however the truth is that the market sets the price. Once an offer is accepted, it's BOTH Realtors' job to get the process through escrow. In truth, this is where we earn our money. Anyone can put a property in escrow, it's closing that takes skill. i

I do know a little about the Southern California market, and IMHO you need to find a Realtor that has a firm grasp of the market conditions and what it will take to sell yoiur home for top dollar. My studies repeatedly show that homes that sell in the first 30 days sell closest to list price. So the longer the property is on the market, the larger the difference between list price and sales price. For the month of November the MLS shows that wthin 30 days homes sold at 99.4% of list price. 120 days, 94.6%..remember that the list price at 120 days has probably been reduced at least once or twice.

Hope this is not too complicated.
Good luck!
3 votes Thank Flag Link Sun Dec 2, 2007
Keith Sorem, Real Estate Pro in Glendale, CA
I will be very worried that you will nickle and dime me to death and I won't be able to concentrate and do a great job for you!

Hi Sean:

I think your most important job is to (yes, a canned answer, but I truly believe it) find a reputable, proven and great Realtor to represent you.

In this market, you want to have a Realtor who knows the market, who knows how to market your house, and who has your best interest in mind. If you find somebody who is going to worry about how to get $2,000 for each $10,000 he gets, I'd be super worried where his loyalty lies.

2 votes Thank Flag Link Sun Dec 2, 2007
Sylvia Barry,…, Real Estate Pro in Marin, CA
Here's what I like. I like that you are an active seller who's thinking and strategizing about ways to best sell your house. Unfortunately, I think you are focusing on a particular aspect of the selling process that probably has the least impact. So keep up the good work and continue to strategize, but focus on the items that will have the biggest impact such as pricing and marketing. Good luck!
1 vote Thank Flag Link Sun Dec 2, 2007

A very complex question. My simple answer is I show my clients property to fit their needs irrespective of commission. Many times prior to presenting the offer I find out the commission may be something less than I think I am worth. We more forward because my happy client (buyer) will be forever grateful and send me lot's of business.

As to listing a property with a complexity....I split whatever commission agreed upon 50/50 with the buyers agent.
1 vote Thank Flag Link Sun Dec 2, 2007
Pam Winterba…, Real Estate Pro in ,
Question for CA RE Pros.....

Are net listings legal in CA? Would such an arrangement like this have some spins that might get on the fringes of this? Curious..... I am not licensed in CA, and don't know the answer. But, I have been reading this and following the answers so far.

With specifics to your proposal, I am unable to respond because I don't know how license laws in CA might impact your suggestions for compensation.

In general, a buyers agent, even when paid by the seller, has a fiduciary to the buyer client. As such, it is their job to look out for the best interest of the buyer. That would mean negotiating the best deal for the buyer.

Several good posts, and excellent well thought out response from Keith. I will continue to follow the thread.

1 vote Thank Flag Link Sun Dec 2, 2007
Deborah Madey, Real Estate Pro in ,
whoa!! That is way too complicated!
The last time I answered a question like this the answer was as complicated as the question...what is the point of this question exactly?
1 vote Thank Flag Link Sun Dec 2, 2007
Sean add this to the senario. The seller feels the home is worth 430-450. My CMA tells me the range for closed sales with similar parameters is 400-420. In that price range there is a 62 month absorbtion rate.
Do you as the agent take the listing, lie and tell them the price is great, and try to beat up the seller for a price drop later, or do you tell them the truth and let them know what your research results are?

By the way I have been successful with the 3/4 senario. Agents will say that they show all homes but if someone is between 2 homes I have seen the higher buyers agent coop sell a home. Why do you think builders offer additional incentives over the normal coop? They want the agent to push their homes.
Web Reference: http://www.Find1Home.com
0 votes Thank Flag Link Wed Jan 20, 2010
Why not ask what and how the agent can do to move your sale or find the best home in the market for you before nail them down on how hard they work to earn their living? If the agent is not worth his earning, you should find someone who is capable of.
0 votes Thank Flag Link Wed Jan 20, 2010
Why make it so cumbersome. We work hard for you, and unless we get your home sold, we are out money. How about...you pay for advertising, time, phone calls, signage, caravans, gas (gosh it just went up again!)...and then pay 2%. That should cost you about....we'll you get the idea.
0 votes Thank Flag Link Sat Jun 6, 2009
On another note - over 72% - I've seen stats as high as 80% - of buyers search on the internet for properties. Often times, my clients choose the properties they want to see as much - if not more than the properties I suggest for them based on their criterias. Only three things sell a home - how it looks, how it's priced, and the obvious - how much exposure it gets. I always encourage my sellers to "stage" their home to make it look it's best. I've had feedback from buyers agents that the staging in my listings is what ultimately sway their buyers to offering on the home. Often time the buyers don't even realize the home is staged. For staging tips, go to the referenced website. Good luck!
0 votes Thank Flag Link Mon Dec 10, 2007
You have really been working overtime on your comission strategy. I commend for this. It does sound very complicated. I understand the concept. I tend to agree with Jackie. It is great to have a seller that is willing to work with his agent to get the job done. I wish you and your agent (to be) luck.
0 votes Thank Flag Link Mon Dec 3, 2007
That's OK, Sean. Like Jackie says below, you are concentrating on something that has the least impact. If there were 20 comparable houses all priced the same, I my customers would want to see all 20--no joke, Sean. Then they'd probably pick the one they had to do the less work on in the location they liked.
0 votes Thank Flag Link Mon Dec 3, 2007
J.R. Thanks
Sorry I was nasty with my second post. but if there were 20 homes on the market all comparable not over priced and you had one buyer with no listings that matched, which one would your salesmen deep inside hope they like. Come on you can do better then that... No one wants to talk about sales here I understand.
0 votes Thank Flag Link Sun Dec 2, 2007
Thanks Deborah, As you know one of my main reasons for this would be to get as many potential buyers on my property as quickly as possible. I know if the price was right. So if you are off the mark you can adjust quickly not after three months with little or no showing. Plus you can find out how many potential are in your specific market. The last place a seller wants to be is in the dark trying to find this way out.
0 votes Thank Flag Link Sun Dec 2, 2007
Sean, sorry to disappoint you, but I show my buyers what they want to see regardless of incentives. I also have no control over how much they want to spend or what they want to buy. Just FYI if you think you're going to attract a buyer's agent by offering an incentive for them to sell HIGH... they buyer's agent has a fiduciary duty to get their client the best price.
0 votes Thank Flag Link Sun Dec 2, 2007
Thanks, your points are well taken. Yes your right, I would have to make an calculated judgment call on the agent who would except this incentive proposal. it's also quick way at the end of a sales call to smoke out someone like you said that would not have my best interest in mind. I would only offer and keep this incentive on the table to someone after they earned my trust. More on the lines of 3% 3% with incentives.
Thanks, I was looking for some Ethics points of views. I will do some more research on this in my area.
What's the point... Your kidding me.... Attracting buyers agents making selling agents use negotiating/sale skills. You should be paying your clients for their advice.
I knew I would get some watered down points of views in an open professional form like this.
Thank you to all that tried.
0 votes Thank Flag Link Sun Dec 2, 2007
Why so complicated? What is the point?
0 votes Thank Flag Link Sun Dec 2, 2007
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