how to deal with my agent?

Asked by Nicole, Tampa Palms, Tampa, FL Sat Sep 26, 2009

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.

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13
Lee Taylor, Agent, Decatur, GA
Sat Sep 26, 2009
Uhhhh...are you in Intown Atlanta's 30307 or in Tampa?

You should spell check and review your question for syntax errors next time you decide to broadcast on the worldwide web, don't ya think?

To answer your question, for a "full service" real estate professional, and I assume that your recent "buyer's agent" is not a "discount broker," but for a "full service" real estate professional, commission discounting is done on a case by case basis. Long term, successful real estate practices are built by taking care of one happy client at a
time, and crafty, timely discounting is part of the game.

In your case, I can tell that you don't deserve a discount.
Web Reference:  http://intowninsider.com
2 votes
Debra (Debbi…, Agent, Livingston, NJ
Mon Sep 28, 2009
I have been on Trulia since May - not a long time, but long enough to see a variety of responses from around the coutnry on a variety of topics.

I see that word "discount" is used frequently - I may even have used it myself.....but it got me thinking ( I tend to do that on occasion !!) - what exactly is meant by discount?

Is that a flat fee, pay $300, and get listed on the MLS agent? Is that an agent that accepts 50% of what is usual or customary in an area? Or is that ME...I have around a 1% range that I can use when negotiating my commission (allowed by my company). Lower than that range, and I will have to walk away......however, to some, that may be considered "discounting".

In regard to that - let me state that I am a full service agent with a national franchise.....I am certainly not discount as far as services are concerned, yet I am am slightly negotiable...............so where do I fall in the generic term often used call called "discounting" ?????? I just wondered..............

If someone uses me..at a slightly less commission than someone else, believe me - they are not getting a reductiuon in services at all.............they are getting full service - and me to boot! They are getting what they pay for and a lot more.
I just think we need to be careful when making definitive statements about discount, full service and other such terms.

"Discount" seems to be in the eye of the beholder. To me, it means a limited service broker with an a la carte-type menu, and admittedly limited services - in that case you are literally getting what you pay for. . Apparently to others discount means someone who takes less than what the majority of agents in the area take.
Sellers , especially today, are looking to save money. I don't blame them for asking about paying less than X%.........I am not threateneed by those types of questions........they can ask......they can explore.....they can make the decision that works best for them.
1 vote
Bill Eckler, Agent, Venice, FL
Sun Sep 27, 2009
Nicole,

Your position IS reasonable because professional fees are negotiable normally controlled by the agent's broker.

Your agent is telling you that the 4%.....6% rate is the best he/she can do. If this doesn't work, you can always look else where but be sure to use a full service agenty and request a written form of the comprehensive marketing plan they will use to sell your home.

Good luck
1 vote
Fred Griffin, , Tallahassee, FL
Sat Sep 26, 2009
Shop around - there a bazillion real estate agents in Florida.

And don't buy into the Sales Pitch Cliche, "you get what you pay for". That time-worn slogan is used by Traditional Real Estate Companies to convince you to pay high commissions.


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Best wishes,
Fred Griffin
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1 vote
Bill Piper, , Atlanta, GA
Sat Sep 26, 2009
You have the right to negotiate. Your agent has the right to not lower his price. You also have the right to go with a different agent. Which one do you want negotiating the sale price of your home? The one who caved easily on price or the one that as willing to stand by his/her service and ability? Of course, you can sell it yourself and save all of the commission.
1 vote
Voices Member, , Benton County, OR
Sat Sep 26, 2009
You get what you pay for....A cliche which as many people know is not always True...

You do not always get what You pay for is a Fact most people are aware of...

It's the person providing the services that give the services Quality not the Price.
A Higher Price does not mean the person providing them does Quality work nor does a lower Price mean the person provides a lesser Quality service

If you do not already have an agreement with an Agent you do have the option of shopping around and there are many Agents...If you use the option to shop then find Good Agents, understand the Services they offer and discuss Commission.

Agents do compete for Business and that is a good thing for the Consumer....You are Hiring Services, they are Selling services

Choose the one you think can sell your property that is your first priority deal with the Commission if you find several to choose from that can fulfill that priority .

Good luck, Dunes
1 vote
Bryan Furse, Agent, Atlanta, GA
Thu Oct 1, 2009
Commissions are always negotiable, but what you should be looking at is how much you put in your pocket, not what the individual expenses are. Look closely at what an agent offers and how they can help you maximize the sale of your home, not where exactly the money is going. The bottom line is, a "cheap" agent is the most expensive thing you can do! The longer it takes to sell your house, the more mortgage payments you make. The longer it takes, the more tax you pay. The longer it takes, (typically) the lower the selling price goes. The longer it takes... the list goes on. That is also not to mention the fact that a cheap agent won't likely be able to sell your house in this market AT ALL, let alone cheaply. Then there's the fact that you will have to come up with more money up front to sell your home, because the lower the commission goes, the more of the risk the agent will expect you to take. If you really want to do it cheaply, try to sell your own home! It's possible and it's legal for you to sell your own home... or you can save yourself some time and stress and just do your homework up front. Because, after trying to sell your own home, you'll be begging your agent to sell your home (if they can).

Good luck and I wish you well and much prosperity!
0 votes
Voices Member, , Benton County, OR
Mon Sep 28, 2009
Debbie I guess I agree and concur..You explained from an Agents view what I was poorly trying to say...

It does seem though that if you offer more Commission you can get even Fuller Services....

"In this economy with so many homes on the market, you would think the smart seller would be offering more......... as an incentive to sell their home rather than how to get pay less"

Don't know if that's an example of you get what you pay for or you don't always get what you pay for ; )
0 votes
Bill Piper, , Atlanta, GA
Mon Sep 28, 2009
I like what Debbie Rose has said.
I have a question for Nicole;
Are you wlling to do everything your agent asks you to do to position your home to sell quickly in your market? The longer a home is on the market, the more expenses your listing agent incurrs to sell it. Resales aren't moving in most areas these days except those that are fabulous homes with agressive pricing. Would you be willing to pay an increased commisson if your home didn't sell in ,say, 90 days for a reduced commission during the initial period?
0 votes
Voices Member, , Benton County, OR
Mon Sep 28, 2009
"Not rocket science. You get what you pay for. if you reduce your agents commission, you reduce your services."

That is an opinion and not a Fact, but it may be a fact that it is an insult to all those who do lower their Commission while still Providing excellent Full Service to their Clients...Are are you stating as Fact that those Agents do not exist...

Again...You get what you pay for....A cliche which as many people know is not always True...

You do not always get what You pay for is a Fact most people are aware of...

As far as costs and expenses, that's the Price of being in Business.
Anyone has the right to say NO to a lower Commission but those who say yes are not automatically offering reduced services or are less able Agents...It's competition and it takes place in every Profession that offers services..
0 votes
Carol McAlis…, Agent, Nashville, TN
Sun Sep 27, 2009
Not rocket science. You get what you pay for. if you reduce your agents commission, you reduce your services. If the commission you pay is 6%...., is split 3% to the listing agent and 3% to the selling agent. Then the agents subtract marketing expenses and both agents must pay their broker/office splits, taxes etc. when you reduce the commission you reduce services and only hurt yourself. If you have a good agent, what you pay in commission is nothing compared to selling yourself, losing money, time and the experience of a great agent that has been thru every detail you encounter. Agents that offer a reduced commission are offering you reduction in service. In this economy with so many homes on the market, you would think the smart seller would be offering more......... as an incentive to sell their home rather than how to get pay less........ and expire.
0 votes
Debra (Debbi…, Agent, Livingston, NJ
Sat Sep 26, 2009
Hi Nicole
If I am following the numbers you provided, then your agent did discount his fee - 4% if he sells it himself, and 6% if sold through another agent. If you want more of a discount, then you can certainly interview other agents. ...Find the agent you feel will do the best job.......But........ don't just shop "price". (commission).

If you have a good relationship with this agent, and he did a good job for you last year....then why not use him again? Remember, he probably works for a company that puts restrictions on what he can and can't do as far as the commission is concerned. I know my company puts limits as to what I can offer. He has already shown you what kind of job he can do...so that should count for something (imo).

You are asking if it "is normal that you can negotiate"........yes, by all means, .you can negotiate................it's also normal for the agent to say no - either because they don't want to lower their commission, or because they can't.

The decision is up to you.
My suggestion - decide what is your priority - using an agent you have an established relationship with......or finding one who will list your home for the least amount. The choice is clearly up to you.

Whatever you decide - good luck with your sale!
Debbie Rose
Prudential NJ Properties
0 votes
Lise Desorme…, , Atlanta, GA
Sat Sep 26, 2009
Hello Nicole, I'm not a realtor but a home stager who has purchased and sold many homes as a consumer so maybe I can help with your question.

I understand the concern about spending more money but the reality is your receiving more serves. Take for example the home the agent sold you. In that real estate transaction there was work involved to ensure a smooth closing and making sure the real estate you were about to purchase was a solid decision and home. In marketing a home for sale a different set of skills are required therefore your realtor must demonstrate a talent in marketing and selling your home effectively. Because these skill sets are different they required the realtor have a certain level of experience to perform on your behalf. The time that it takes a realtor to acquire these skills is the measurable compensation they deserve.

The only reason your realtor would like 4% without a buyers agent is because he would have to perform two different skills sets and two different jobs. The time involved and experience for handling both sides of the transaction also requires more effort and time. If you think about it, that's 2% less then if a buyers agent would exist and quite a good price when you consider he would do the work of two agents.

Next my best advise is to ensure that the agent is worth their money. Ensure that they have enough experience in both sides of the real estate transaction to justify the price. Even though he may have sold you the home does not necessarily mean they have the talent, resources or ability to sell a home. Don't assume that all realtors are effective with both skill sets. You can ask for referrals of other sellers to ensure he will be the right choice for you.

One last note on the subject. In most businesses when services are discounted in price so are the serves performed. You may not like what you get with a discount.

Hope this helps. Lise

Hope this helps.
Web Reference:  http://www.rmr-usa.com
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