Why wouldn't an agent show a buyer every available home irrespective of the commission split % ?

Asked by Jean, Perth Amboy, NJ Wed Sep 25, 2013

Several agents mentioned agents reluctance to show buyers other brokers listings where the commission split is low, or where seller only offers broker 3% commission, leaving less incentive to selling agent. Isn't that like cutting off your nose despite your face? Isn't earning some commission better than no commission. Is that much work involved that it's not worth the effort? Aren't agents better off getting out into the field to network & find customers? Seems like lame excuses for not accepting lower commission percentages. As home prices rise the money is good even at 2%. Cost of advertising seems to have abated as many sites have fixed annual fees to join or offer no fee. At times you strike out, other times you get a hit or home run. Seems with low market inventory there would be more price competition between brokers, or is there just a conspiracy to keep commission percentages above a certain floor to keep the business listed as a profession?

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Anna M Brocco, Agent, Williston Park, NY
Wed Sep 25, 2013
Plenty of good agents out there who show properties that meet their potential buyer(s) needs regardless the commission amount.
0 votes
Gary R. DeFi…, Agent, New York, NY
Wed Sep 25, 2013
When a buyer asks me to show him/her a house, I am interested in selling them a home and earning a commission. I don't refrain from showing a home because of the commission split. I do, however, try to advise buyers that new construction brings more closing costs and, therefore the buyer will have to take more money out of their pocket at closing. As for the commission on new construction, here, on Staten Island, builders are paying less commission because one particular broker undercut everyone and destroyed new construction commissions for everyone.
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Kawain Payne, Agent, Seal Beach, CA
Wed Sep 25, 2013
Hello Jean,

Many agents practice this. What those who do fail to realize is every sale is a seed planted for a future referral.

When they focus on the commission rather than getting their buyer the best deal they do themselves and the buyer a disservice.

I may sound crazy, BUT I d not look at the commission% when I search for homes for my buyers. I look for their specs and price. I email them my findings and show them the homes they decide to view.

We have to put service above self!

Kawain Payne, Realtor
0 votes
Deborah Brac…, Agent, STATEN ISLAND, NY
Wed Sep 25, 2013
I think most agents let their buyers decide on homes regardless of commissions, better to sell one home rather than none at all! Unfortunately, SOME may feel otherwise.
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Jill Subes, Agent, New York, NY
Wed Sep 25, 2013
I always show the home regardless of commission. You can do a buyers agency and have the buyer pay the remainder of the commission. I do know when there were a lot of similar houses on the market many agent will not show ones that pay out 1%.. In defense sometimes you sell a new construction that is $700,000 and the cooperating broker is paying out $3000. We have to pay our broker and then we are left with enough to cover gas from showing 10-15 houses. Then we spend hours dealing with banks and attorneys so it is almost like working for less then minimum wage.
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Jonathan Dal…, Agent, Glendale, AZ
Wed Sep 25, 2013
There's no conspiracy. There's also no cure for either greed or stupidity.

A good agent absolutely will show homes to their client regardless of the co-broke offered. Not all agents, however, are good agents and some will only look at those with a certain co-broke as they feel it's not worth their time otherwise.

Having said that, while there's no standardized commission or co-broke, it generally is in the best interest of a seller to offer what would appear to be the "normal" co-broke. If you're asking whether it would be an issue, then you probably already know it may be an issue, right or wrong.
Web Reference:  http://expiredtosoldaz.com
0 votes
On the money! Seems in NY some agents are not dedicated as others. Lot of part time homemakers & oil salesmen in the industry only looking for the big payday.
Flag Wed Sep 25, 2013
J, Agent, Greensboro, NC
Wed Sep 25, 2013
Jean, I agree. I show all properties that meet or exceed my buyer clients requested criteria. My clients know well ahead of time via signed contract that if a seller is offering less than the standard buyer's agent commission then the buyer client will pay the difference. I've always done business this way and it has never been an issue with buyer clients. So, no, I don't understand why a buyer's agent would side-step any property. Thanks and good luck to you!
0 votes
Alan May, Agent, Evanston, IL
Wed Sep 25, 2013
A good agent will do exactly as you suggest... because in the end, they're supposed to be representing their client, not themselves.

And so, a good agent will show every property that meets their client's needs, irrespective of the commission being offered.

Now, does that mean that I don't look at the commission.... no, of course it doesn't. But I won't take a home out of the viewing que, simply because they're offering a low co-op fee. I have shown a property that was offering only $100.00. Yep, that's right, you read it correctly... one-hundred-dollars. I held my breath, during the showing, hoping against hope that my client wouldn't like the property... but I did show it. And I believe any good agent would, if it met their client's needs.
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