it's normal to make a deal with my agent?

Nicole
Home Seller
Tampa Palms, Tampa, FL

Hi,
I bought a houe last year with a buyer agent,and now I'll take him to help me to sell my old house.
Don't you think that it's normal that I can negociate (drop it)a little bit the comission that he want to take it?
He told me that he can't do it,because it's a fix comission ,he want to take 4% if he dosen't have a buyer agent ,and 3% if he will have a buyer agent.So ,I have to pay 4 or 6 percent from my money.
Please help me with sugestions .Thanks.

Answers (9)
James Gordon PBD...
Agent
Butler County, OH

Alan and Dunes the only reason that I mentioned the breakdown and taxes is that a lot of people thinh that when a property is sold the listing agent gets the full commission. A lot of consumers do not understand that the money that they pay at closing to market and successfully sell their home gets split many ways. The agent has only a small percentage for disposable income.

Web Reference: http://www.Find1Home.com
Mon Sep 28 2009, 01:26
Alan May
Agent
Evanston, IL

Overall, the consumer doesn't care (nor should they) how the money is broken down after it leaves their hands.

If you have a 50/50 split with your broker, or pay a 35% split to uncle sam that's all part of the cost of doing business. If you don't discount your services, (and I don't), then "don't discount" on the basis of your offering services that excel in your field.

Offer the top of the line marketing materials, photos, brochures, advertisement, web presences... you get the idea... but as a consumer, I couldn't give a rat's patoot, how the breakdown works.

Sun Sep 27 2009, 11:16
Dunes
Both Buyer and Seller
Benton County, OR

"1000.00 commissiom= 500.00 to agent and 500.00 to broker "

Maybe that needs to be discussed with the Broker, I do not see how that split is the Consumers responsibility in any way....I know...The Broker has expenses ; )

Sun Sep 27 2009, 10:41
Patrick Thies
Agent
Elmhurst, IL

You have used this agent on your purchase and must be satisfied with his services since you would like to use him on your sale. If you don't go with this agent then you will shop around until you find an agent that will list your home at a lower commission. In that case yo will be going with an agent that you are unfamiliar with and not exactly sure how their services will be. They could be good or they may not meet your satisfaction. In this market you want an agent that is going to work for you not just do the basics so choose wisely.

Sun Sep 27 2009, 07:58
Guy E. Gimenez -...
Broker
78704

Everything in negotiable. "Normal" is a very subjective thng. Normal for you? Normal for your market? Normal for the agent? The bottom line is you need to do what is best for you and your family and not concern yourself about what is best of the agent or his family. That is the agent's responsibility, not yours. If the agent is worth his salt, he will set his bottom line commission number and not budge. If you can't meet that number, he should walk. If he's not worth his salt, then he will take whatever you are willing to offer. Either way, you can and should negotiate every aspect of the transaction from commissions to what forms you will sign at closing.

Sun Sep 27 2009, 07:33
James Gordon PBD...
Agent
Butler County, OH

Nicole if I am working with a buyer we have a buyer/broker agreement signed. My buyer understand that the broker that I work with will be paid 3% of the sale price. You can choose to offer less but it is up to my buyer is they want pay the remainder commision or ask for you to pay it per the terms of their contract. Most of the time they choose not to view properties that are not offering a 3% commision. As for what your listing agent will work for that is another matter. Your listing agent may choose if the broker allows to work for less. At a 1% commission on a listing the listing agent wold not in my opinion make enough to market the property very hard. The normal way the commission is that the broker and the agent split. The breakdown per 100,000 of value is like this.
100,000.00 sale = 1000.00 commission
1000.00 commissiom= 500.00 to agent and 500.00 to broker
500.00 to agent = 300.00 to agent and 200.00 to governmet for taxes
So in the end at a 1% listing commision the agent has about 300.00 per 100,000.00 of income. That is their paycheck. They have to pay for their personal expenses like car and food, also that is the money that they will get to pay for any marketing. Remember that this money is only paid when the property sells so any marketing that is done on the home comes out of your agents pocket on the hope that they can sell your property. Good luck but I hope you can see why some agents that work hard and do a lot to expose a home sale just can not work for less. If this was a buyers market and all you had to was put a property on the MLS to sell it it may be different but in my area it takes a lot of to get a home not just under contract but sold.

Web Reference: http://www.Find1Home.com
Sun Sep 27 2009, 04:35
Dunes
Both Buyer and Seller
Benton County, OR

My previous comment is based on you haven't listed or already have a written agreement with the Agent...If you do then that's the agreement you have and you pay the Agent what you agreed to pay....period.

Sat Sep 26 2009, 19:39
Dunes
Both Buyer and Seller
Benton County, OR

"You paying 1% or 2% less on commission saves you some...but takes a huge portion out of the agents paycheck. We have families to feed and bills to pay just like everyone else and asking us to cut our commission when we have to work twice...maybe three times as hard to make that money isn't really fair. "

Is that what Negotiating Commissions has come to?

This is your Business Arrangement and you are doing the Hiring..Agents sell Services and that involves competing with other Agents who are selling services also. This is good for the Consumer and a part of any Profession that sells services.

When you buy a Car you don't buy the first one you see and I am not thinking RE Agents concern themselves any more than most people do about what the salesperson makes when they buy a car but are far more concerned about getting a good buy for their money.

That being said the Goal here is you want to sell your home so you need a Good Agent in order to attain that Goal..A Good Agent providing the Services to attain your Goal is the First Priority you need to take care of.

There are many Agents so it is perfectly OK to shop around and see if you can find a Good Agent that will offer a lower Commission. Maybe you will and maybe you won't but you do have that option if you choose to use it.

You are going to hear about Marketing costs and other expenses but those are not your concern, they are the Agents concern and they knew about those expenses when they choose this Profession. That is why they have the option of saying NO.

You will also hear the cliche "You get what you pay for" which is not always true, however sometimes people do not get what they paid for .....That is a FACT.....

Higher Commissions do not make an Agent a Good Agent any more than a Lower Commission make an Agent a Bad Agent. The same is true with Services, paying more does not automatically make them better nor does paying less make them automatically worse.

So with all that in mind you must first understand that the GOAL is to SELL your property and you need to keep that as the most Important priority..Negotiating or looking for a Lower Commission is an option, you have just be careful to be sure you are getting a Good Agent who can provide the Services you need to accomplish your Goal of selling your property.

Good luck, Dunes

Sat Sep 26 2009, 19:27
Jodi Smith
Agent
Marietta, GA
FIRST ANSWER

Nicole, this question has been addressed many many times on Trulia, and I'm sure you will receive many strong answers to follow. We are salesmen (women) essentially. So I ask you...would you go into Home Depot and ask the refrigerator salesman to lower his commission on the sale in order for you to pay less? Or would you go into the Toyota dealership and ask the saleswoman to lower her commission so you could save a thousand dollars or so on your car? The simple answer is "no". Today, more than ever, we work harder than we ever have to make money as Realtors. Fewer sales and longer work days make it hard to pay the bills. You paying 1% or 2% less on commission saves you some...but takes a huge portion out of the agents paycheck. We have families to feed and bills to pay just like everyone else and asking us to cut our commission when we have to work twice...maybe three times as hard to make that money isn't really fair.

I say, use that agent and don't forget to thank them when it's all over!

Good Luck!!!

Sat Sep 26 2009, 18:00

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