In over 20 years I have not really seen agents create a sale because of the compensation. If a buyer agent is truly working for the buyer, he will show the buyer any and all available properties. If you are doing your job properly your focus should not be on your compensation, but rather helping your buyer achieve his goals. I see many properties offering bonuses, etc., but they don't seem to sell faster. It is much better to price the property appropriately, or even a thousand or two below market...that usually will bring the quickest sale.
As for the listing agent...when is the last time you went to work and did more than just an average job, and were then asked to give up part of your pay. If you get the right listing agent, that agent will work over-time to get your place sold. He doesn't earn a dollar until that happens. As a ReMax agent, I can tell you that I spend a lot of money on getting my listings sold - advertising, print materials, broker's lunches, etc. So, in effect, I am not really earning the 3% that I am being paid as a part of that goes to expenses. If you would like discounted services, then pay a discounted rate. You get what you pay for in this life. If you have a good agent, that agent will decide if it is appropriate and warranted to share is commission on a different split in order to get a difficult job done.
Carol Murray Cei
But I would suggest since you are ready to pay 6 % to discuss how your trusted listing agent would prefer to split it with the side that brings the buyer! I discuss it with my sellers in detail, as sometimes the location or kind of property I am listing may need more or less marketing and time.... And make sure you to the right thing by your listing agent - are you not also going to use that listing agent to find you your next home?
If you are interested in me recommending a trusted Realtor Colleague/Partner in Philadelphia to you, let me know I would gladly do so. E-mail me directly and send me your address and a phone number and I will forward to you the contact info. If you do not mind tell me a little bit about your current home and what you intend to buy.
Hoping to hear from you soon.
Edith YourRealtor4Life Working always in the very BEST interest of her clients!
In theory, it sounds good. However, a very major portion of the expense associated with the sale od a home is absorbed by the listing agent and/or company in the form of advertising and promotional expenses.
I'm afraid that if your plan were implemented properties would not be advertised and therefore visibility would be negatively impacted.
You may be onto something but I'm afraid as it stands, additional work is necessary.
Keep thinking out of the box.....
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Michael P. Cohen
As stated throughout these answers...very rarely will you find an honest and successful agent who shows property merely based on a higher commission. Agents cannot force their buyer to buy a certain home just because the commission is a % higher.
However...what you may find instead is a listing agent who is willing to do less for you if you are paying them less money. For example..if my seller would only pay 2% to my company for selling his/her home...just to give you an idea as to how that affects me. On a normal $200,000 house i would gross about $3327 on a normal 3% commission. Net would be about $2100 after you figure in advertsing expenses. That doesn't count taxes. On a 2% commission I would gross about $1825.00 and net $625 roughly. After taxes I don't make enough to pay my bills (ecspecially if that is my only closing for the month). At that point I am more likely to do less advertising on the property for the simple fact that based on a 2% commission I cannot afford to spare the extra money. What most people don't realize is that 9 out 10 times the listing agent is splitting their commission with their company. In my company, if we bring in less than a 3% commission than we get a little bit less than 50% of that check. Again..because of all of the cuts down the line..my advertising on the property has dropped.
Hope this helps!
Realtors are making a shift more towards marketing professionals as well as real estate professionals and you need to find someone who understands this.
Feel free to ask me any questions, email@example.com
Still, it is the same amount of work pretty much for the listing agent for each deal and the marketing will be the main reason they go under contract. I believe that buyers agents in this market are just happy to do a deal and thus are super happy with 3 percent too.
Either way, it is good to work with an agent that can think outside the box and come up with a strategy together with you that best suits the specific situation. Good luck ! If you need more info, please check out our site at http://www.thesomersteam.com ... specifically the section "selling your home" http://www.thesomersteam.com/selling.php .
Both Agents Gave Great Answers! And Sooo True too.
Just a Thought.... Going on the fact your paying a 6% commission>>
How about....2.5% to the listing agent , and 2.5% to the selling agent(even split). And a aditional bonus(1%) to the selling agent? Might keep everyone happier, including the listing agent who can list and sell your home too.
Hope I've been helpfull.