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Hi, my nephews friend is a realtor and will do a 4% commission for me to save money. Will you as real estate agent bring buyers to a house with a 2% commission? Thanks for the feedback. Mindy
What will you, the seller, get for the 4% commission? Is your nephew's friend willing to commit to the marketing expense necessary to sell a house in a slow market if he's discounting his commission? What exactly will he be doing to market your home? You say he's doing this to "save" you money. However, if your home doesn't sell because of lack of marketing, or sells much lower than it should because of a lack of knowledge about your market, then have you really "saved" anything? Just something to think about. If your nephew's friend knows what he's doing and is willing to spend the marketing dollars like he would for full commission, then you've got a good deal.
If the home is marketed well and priced well (which means the friend must be willing to spend the time it takes to really stay on top of subtle changes in the market and track your competition so that you don't lose out on a sale) then buyers will want to look at your home, and agents should be willing to show even if the commission offered might be low. Keep in mind, though, there's going to be lots of other houses out there where the sellers are offering bonuses and extra commission to try to get more activity on their homes.
Consider this: Many buyers agents have a contract with their buyers to pay them 3% when they buy a home. That 3% is offset by the commission that the sellers agent pays the buyers agent.
If a listing agent offers 3% to the buyers agent, then the buyers client would not have to pay the buyers agent anything because his fee is offset.
If an agent takes the client to a home where the listing agent is only offering 2%, then the buyers agent must inform her client that if they buy this house they will have to make up the 1% difference.
Consequently if your home is on the market for $500,000 then the buyer would have to pay her buyers agent $5,000 to make up that difference. The buyer may decide to not look at your house because of that.
If most of the listing agents are offering 3% to buyers agents and your friend is only offering 2%, then he is doing you a disservice, in my opinion.
If he wants to save you money, then he should offer 3% to the buyers agent and only take 1% for himself, and still do all of the marketing and legwork required to get your home marketed. That means that s/he won't make any money, or won't do any marketing. That's the way I see it.
If your agent is willing to work for 2%, so be it. Find out what coop fee range is being offered in your marketplace. Then look at your closest competitors coop fee. Offer at least as much, better to offer more, if there is lots of competition.
You only pay if you get the cash, so there is little risk to you to offer a competitive coop fee.
I have to say I am surprised his broker went for it....myself, would i show the house? sure if its what my clients wanted, but I will not speak for all realtors....EVER lol
Great question, which brings about many as stated in all the posts. Ask all those to your listing agent, and then you should have a better feel. I agree with the one post, I always take clients to whatever matches their likes,and I only look at the commission, once we start with a transaction.
Hi, my nephews friend is a realtor and will do a 4% commission for me to save money. Will you as real estate agent bring buyers to a house with a 2% commission? Thanks for the feedback. Mindy
I would.
Although, in all honesty, and with complete disclosure to my buyer, assuming your home is in a "tract" subdivision, and there are several other homes, just like yours, that are offering more co-broke, I would also show those homes as well -
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