Home Selling in Buffalo>Question Details

Jan Lauciello…, Home Seller in Coral Springs, FL

What is the general opinion of the 2.5% agency's when looking to sell?

Asked by Jan Lauciello Chianta, Coral Springs, FL Mon Mar 21, 2011

Is it true that agents will shy away from showing the property due to the reduced commission?

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6
Honest answer? Yes. If there are comparable properties on the market, chances are a buyer's agent will send their client the others and possibly not the lower commission offered property. Smart buyer's agents have the right and should negotiate their commission if they want more. The seller pays the commission here in WNY but the buyer's price is reflected in this based on the sellers "net", so buyer's are certainly affected by the commission. Agents should disclose this to their buyer clients and should ethically show them anything they ask for.

Will a server at a restaurant try to sell you the surf and turf because its the "BEST" or because its the most expensive? What do you think? I doubt they will suggest the $6 salad over the $35 s&t. UNLESS the salad will blow the client away and the server truly cares about their customers experience. But they are just a customer, not a client, and there is no AGENCY relationship like there is in real estate.

Agents should be honest with their clients. Most agents should accept a lesser commission, especially on a more expensive propererty, and based on how much work they have done for you.

Sellers should also ask their agent if there is a way to reduce their listing commission, if they want to do some of the work or based on a promotion the brokerage may be running.

Everything's negotiable!
0 votes Thank Flag Link Wed Aug 3, 2011
All commissions are negotiable between you and your agent, there are no set standards as it would go against Federal laws, see link below--therefore, interview in person a few agents from different realty companies and then choose the one you like best and who has the most to offer--don't base your decision on commission alone--choose your agent with care.
http://www.justice.gov/atr/public/div_stats/211491.htm
0 votes Thank Flag Link Mon Mar 21, 2011
Honestly, it depends on them and their independent business model. I know several agents here in Tucson that takes them or even 2%. Some may not, but in the end, each transaction is different and the price to sell, is negotiable.

Best of luck.
Spirit
0 votes Thank Flag Link Mon Mar 21, 2011
Dear New Yorker,

All commissions are negotiable.

Research and interview asking lots of questions. What type of marketing do they do? How many websites do they put your listing on? Who handles the paperwork when an offer arrives? Who does the negotiating? Whose phone number will be in the listing and if it is yours, are you available to answer all calls or do you work full time?

Prior to showing your home, there are some agents that do look at the commission being offered and some that don't.
Web Reference: http://www.lindacefalu.com
0 votes Thank Flag Link Mon Mar 21, 2011
There was a flurry of these discount brokerages a few years ago, most are not around anymore - wonder why?

The 2.5% agency puts your listing in the MLS, they will charge you for a fee and for signs, ads, anything else they do since that is a source of income for which they don't have to even get your house sold to collect their fee. Realtors only get paid if they make it sell. I know some agents shy away from these discount brokers, not so much because the commissions but because we know there is no agent working with the seller, so we have to do that job too and for the same commission - so if there are other homes that fit the needs of the buyer......... they get shown first.
0 votes Thank Flag Link Mon Mar 21, 2011
I have seen that happen..

As a side note- just want to let you know that it is not legal for agents/brokers to be talking about commission rates (due to price fixing laws) with other agents/brokers. It may be a good idea for you to ask your friends and family or even talk one-on-one with a few agents.
0 votes Thank Flag Link Mon Mar 21, 2011
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