Are agents now giving/sharing commissions to buyers and sellers? I have met a realtor who is willing to share

Asked by Fox Blake, 90650 Fri Aug 22, 2008

her commission just work with her. Any comments?

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10
Tisza Major-…, Agent, Upland, CA
Fri Aug 22, 2008
BEST ANSWER
Hi Fox,

I am just wondering why they should? Are the buyers and sellers going to share what they earn at their jobs with us so they can work with us? And paying a commission for a service successfully rendered is not sharing, its business.

I can't speak for every agent, but I know that I work very hard for what I earn and, when you consider that I am earning on average $0.03 on the dollar for my skill, training, coverage of the transaction by my errors and omissions insurance (which I also pay for), my willingness to do what ever is necessary whenever it needs to be done in order to help my clients (I spend a lot of time working on my client's deals long after 10 PM and frequently start before they are even out of bed in the morning), and I am also expected to foot the bill for any and all advertising for my client's homes for sale.

What I will do for my clients is try to negotiate the best price for the home that I can and if I am offered a "bonus" by the other side, I will happily try to convert that bonus into a discount for my buyer.

Think about this, which is a better deal for the client - To have part of my salary "shared" with them but to then wind up paying top dollar for their home thus increasing their loan costs, taxes and other expenses. Or, having me work as hard as I can to get them the best possible deal for the home they want to own or the best price for the one that they want to sell.

Also, why would you want to work with someone who is not even able to negotiate the best deal for themselves with you? What does that tell you about their ability to negotiate on your behalf with someone else? Geez, if they are willing to sell their own family down the river, what do you think they will do to you?

Good question, this should elicit lots of discussion. Thanks for asking it :-)

Take care, help lots of people and have a wonderful day!

TIsza Major-Posner, Realtor, IVPG Realty
Web Reference:  http://Route66Living.com
3 votes
Monique & Joe…, Agent, Beverly Hills, CA
Fri Aug 22, 2008
Hello Fox,

No. Most agents do not do this. Some time you have to do what you can to keep a deal together as an agent. Pay for this or that. Just be sure you are getting full service. Some agents will do this because they are new and not experienced or do volume rather than quality. As a buyer you want an agent that knows the neighborhoods your looking in, knows how to negotiate a deal and keep a deal togeher.


You do get what you pay for.

Best,

Monique Carrabba
Keller Williams Wilshire
mcarrabba@kw.com
3 votes
Mike Bjork, Mortgage Broker Or Lender, Redondo Beach, CA
Thu Aug 28, 2008
I'm actually responding to Steve's comment to this question. I disagree with your reasoning about expecting the Realtor to share their commission just because home prices, also went up. This is the same type of thinking that create "Class Envy", which that Poor People are entitled to the money from the Rich. If you are unsatisfied with your salary, then I'd suggest choosing a profession that will allow you to make the money you desire, instead of feeling that you are entitled to somebody else's hard work. If you don't think that an Realtor's job is not hard work, then I suggest you give it a shot. That is why so many people leave the industry in such a short amount of time because they didn't realize all the work to become successful. If you are providing excellent service, which is why most successful Realtors are successful, then you shouldn't have to pay somebody to work for them. I'm not a fan of the "entitlement" mentality. I apologize to everybody for taking away from Fox's question, but felt that I needed to voice my opinion to this comment.
2 votes
Bryson Team, Agent, Fountain Valley, CA
Sat Aug 23, 2008
I would be a little concerned. If there is a situation that the agents need to help than that is normal, but just for no reason I would be wary.

Would you go to a doctor who offered to pay you part of their salary ?
2 votes
Keith Sorem, Agent, Glendale, CA
Sat Aug 23, 2008
Fox
There is a sign at my florist that reads "I will give you $500 if you choose to work with me" signed a Realtor.

If that is their pitch, I always think, "Gee, is that their best shot? What would it be like to work with them? How can they be a tough negotiator for me if they are already giving their money to me?"

I am sure your post will generate lots of comments. Thank you!
1 vote
Janet Reilly, , Carmel, CA
Thu Aug 28, 2008
Hi Fox, Some agents do rebate part of their commission and of course, all commissions are negotiable. Agents may rebate, first of all if it is legal, which it is not in all states (although lowering the listing commission is), if someone is both buying and selling through them (a volume discount), they may rebate or reduce commissions as part of a benefit to the buyer or seller through a Relocaion or Affinity program or simply to assist a buyer or seller in putting the deal together. Most frequently they do it because they are not strong at negotiating. I think it is important to remember that if an agent can't negotiatite on their own behalf they probably cannot negotiate effectively for you either. I would be looking for a strong negotiator who truly listens and understands what your needs are and does everything they can to meet them. At the end of the day this will be worth far more than any commission rebate. Personally, I have no problem with any agent who charges less than I do...they know what their service is worth, and so do I.
Best of luck to you!
Web Reference:  http://www.teamreilly.com
0 votes
Steve, , Rohnert Park, CA
Wed Aug 27, 2008
Even with the recent market downturn, most homes in CA are selling for double+ what they were 9 years ago. Presumably, that means agent fees have more than doubled over a 9 year span as the 3% still seems fairly static.

Median-income in CA has climbed less than 20% in the same time frame.

Seems perfectly reasonable for an agent to rebate some of the Realtor-fee bubble.
0 votes
;, , Riverhead, NY
Wed Aug 27, 2008
Fox, some agents ARE willing to rebate part of the fee for having located or sold a home. Check their history, check the marketing plan, and decide from there if you'd like to work with them. The Consumers Report link that I will post, again, indicates that real estate agents are willing to "share". It's just what IS.

http://www.msnbc.msn.com/id/26014600/
Those that don't want to offer flexibility won't- they'll let you know up front, and you can decide from there.
Web Reference:  http://optionsrealty.com
0 votes
J R, , New York, NY
Wed Aug 27, 2008
I charge a fee, and it is my fee, that's that. I have not come across ANY agents who are sharing their commission. IMO this is the flip side of buying listings. Weak agents do it. Just because I give you part of my salary, who says you got the best deal? Did you ever go to a store that advertises "50% off" and you feel like they hiked up the prices first? You could have gotten a better price using someone who felt they were being paid for their hard negotiating, not someone who has to bribe you to work with them.
0 votes
Mike Bjork, Mortgage Broker Or Lender, Redondo Beach, CA
Wed Aug 27, 2008
Hi Fox,

I'm not an agent, but work with many real estate agents. From my experience, this is not a common practice. Those who do this, then you may want to ask yourself if they really have your best interest at heart. I have to agree with the posts below, which it is true that "You get what You Pay For". In Real Estate, it can become very expensive, very fast. I'd recommend working with a specialist in the neighborhood you are searching. They will want to be sure they have done excellent work for you because they will most likely work to receive your future business and referrals. Best wishes!
0 votes
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