Do Realtors frown on getting 2.5% instead of 3% commission? (buyer's agent, commisions, agreement)
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Do you think that a buyers agent wont show our property if they were only getting 2.5 instead of 3 percent? I know that they would prefer 3% but would they not show our lots to their clients for 2.5%?
2.5 for the selling agent and 2.5 for the buyers agent.
Do you think that a buyers agent wont show our property if they were only getting 2.5 instead of 3 percent? I know that they would prefer 3% but would they not show our lots to their clients for 2.5%?
2.5 for the selling agent and 2.5 for the buyers agent.
Thanks~
I wouldn't hesitate showing the property to my buyers if it was what they were looking for and in their price range. However, if I have a Buyers Rep agreement with my buyers that says I will get 3% for performing my job, my buyers may be less interested because they would be responsible to me for the other .5% if they made an offer. My buyers understand what my obligations are to them and what their obligations are to me. If they want to see a house that offers the buyers agent a commission less than what their agreement called for I will happily show it to them but they will be aware ahead of the showing that they would be responsible for whatever portion of my commission is not covered by the seller.
The buyer's agent should show the house that best suits the needs
of their clients. Thinking about commission first is putting the cart
before the horse and may look good in the short term. However,
those agents that consistently look out for their client will do
the best in the long term. Word of mouth is huge is real estate.
Commisions in NC are negotiable. There is no fixed rate.
Also, 2.5 on a million dollar sale is a lot more than 3 % on a hundred
thousand dollar sale.
Iggy is right. Unfortunately there are realtors that put commissions first (like any industry) and needs of the buyer 3rd or 4th on the list. That's why its EXTREMELY important to interview at least 3 or 4 before you rush and hire a listing agent. Not an easy task, but must be done or you'll end up w/stories like people post on here everyday.
It is unfair though to paint an industry w/a broad brush.
As like anything else (mechanics, financial advisors, etc) you need to find one that is looking out for your best interests and not their pocketbooks first.
I am a realtor and also an investor...all I will say is that when I list a property of my own for sale, I offer a 3.5% commission. My average market time for my personal investments is about 9 days. (yes, that is a number for THIS year)
Do you think that a buyers agent wont show our property if they were only getting 2.5 instead of 3 percent? I know that they would prefer 3% but would they not show our lots to their clients for 2.5%?
2.5 for the selling agent and 2.5 for the buyers agent.
Thanks~
Just an FYI that you're probably already aware of - generally speaking vacant land commission is quite a bit higher than residential.
I wouldn't refuse to show a listing just because the commission is 2.5% vs. 3%. When you do the math...the difference between the two is neglible. Just because I don't do it doesn't mean it doesn't happen. The way I see it is 2.5% of something is better than 3% of nothing.
Do you think that a buyers agent wont show our property if they were only getting 2.5 instead of 3 percent? I know that they would prefer 3% but would they not show our lots to their clients for 2.5%?
2.5 for the selling agent and 2.5 for the buyers agent.
Thanks~
Well, let me ask you, would you frown if your got paid 16% less on your paycheck for doing the same job? I'm sure you would, I know I would.
The house I bought last year as an agent was offering 2.5% and it kinda sucked. I even tried getting the additional .5%, but the listing agent said he was getting even less as he was doing this for his long time friend's daughter (I think he was getting 1.5 or 2%). I didn't care for that answer as that was his problem not mine. But we bought the house anyway as it was the one we wanted.
I know it is different in different areas and it depends on the market. But where I'm at now, I'm a little unfamiliar with it some, compared to where I was living and sold before. As I didn't know selling land lots, you get a higher commission?
It's also good to know that Realtors will still show my lots to their clients. I might raise the commission but my Realtor said with multiply listings she gives discounts. Once our lots sell we will then sell our home with her too. The discount is selling it for 5% instead of 6%. Split 50/50 with the selling agent and the buyers agent.
So thanks, This forum is very helpful.
~Roma
Last edited by Roma; 10-14-2007 at 09:05 AM..
Reason: Added the split.
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