I rarely get into these "discussions" but do not like it when hyperbole and obfuscation take the place of logic and fact. With all due respect to my colleagues, does it not seem disingenuous to believe that the more you get paid the better job you are willing to do? Does a lawyer work harder for you based on the expected settlement or pre-agreed split or do they hold back their expertise because they are only going to make X amount on your case? Does a doctor hold back on a given procedure or work with one hand tied behind his back because he has agreed to accept what your insurance will pay? Of course not.
On an average say $700,000 home, the commission is "typically" (at 3%) $21,000 dollars. I work just as hard, have just as much knowledge, education and negotiating ability and feel that a paycheck of $14,000 is very good pay for representing my client and getting them the best possible deal while rebating back $7,000 to my client. Win, Win.
What about if you are also the listing agent, do you expect a full 6% or will you negotiate then?
If a listing is "only" offering 2.5% or even 2% (the horror) do you work any less on your Buyer clients behalf to get the best deal possible? Of course not!
Bottom Line; Demand the best agent skills and commitment AND make the best financial deal you can. All commissions are negotiable, by law, and this INCLUDES Buyers side. Do I "hire" every buyer or seller? No! So if an agent refuses to "negotiate" their Buyers side commission, when and how does the Buyer negotiate??
It is, after all, the BUYER that actually PAYS the commission by purchasing a home with the commission price built into the asking price and therefore Sellers "net". The nonsensical argument that the seller pays the commission "out of their proceeds" is merely accounting as the "proceeds" are coming from the BUYER.
In the example above, by reducing the amount of the loan by $7000.00, the fully amortized savings at 5% over the life of the loan is $13,527.00.
If you are a buyer that truly believes that "you ONLY get what you pay for" in this context then please call me and I will charge you a full percent ABOVE what anybody else is willing to do! ;))
Now that all being said, interview agents and find the best agent that matches your needs. I wish you all the best!
Marston Myers - Broker
Area Pro Realty - People's Choice