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We have bought and sold two homes over the course of 12 years with our Real Estate agent. We are moving and have contacted her about selling our home and working with us again. We asked, because of being good costomers with her and working with her in the past, if she could lower her commission amount. She said "No, if I do a favor for you I'd have to do one for everyone." We understand that times are different now and it takes longer to sell a home but things are different for us as well. Are some agents lowering their commission during this housing crisis? Should we go to another agent?
We have bought and sold two homes over the course of 12 years with our Real Estate agent. We are moving and have contacted her about selling our home and working with us again. We asked, because of being good costomers with her and working with her in the past, if she could lower her commission amount. She said "No, if I do a favor for you I'd have to do one for everyone." We understand that times are different now and it takes longer to sell a home but things are different for us as well. Are some agents lowering their commission during this housing crisis? Should we go to another agent?
As a retired Realtor, I can advise you that this is not fair to your agent. No. 1, you know she is a good agent because you have worked with her in the past. No. 2, this is a difficult economy, homes are staying on the market longjer. You have to price your home aggressively because you most likely have a lot of competition. You are not just paying for an agent to write up a piece of paper, put it in MLS and so forth; You are paying for expertise, the agent's reputation and education, talent, and professionalism. You are paying for your agent to bring you to the closing table and get your home sold with the least amount of stress and time. Anything else is penny wise and pound foolish; and any agent that is successful will not take half a paycheck. You need the best agent possible in this market.
99% of homes are sold through the MLS system; with the average 6% commission being split between two cooperating offices; thus the listing office keeps 3% and 3% goes to the selling office. Why would you want to shoot yourself in the foot? You would not only be paying your own agent less, but a cooperating agent less. A cooperating agent may not even show your property if it is discounted; there are plenty of others. As a matter of fact, in this economy, sellers are offering incentives to the buyers; such as home warranty, decorating allowances, paying part of their closing costs. Whatever it takes to get it sold.
Last edited by QuilterChick; 06-11-2011 at 11:48 AM..
We have bought and sold two homes over the course of 12 years with our Real Estate agent. We are moving and have contacted her about selling our home and working with us again. We asked, because of being good costomers with her and working with her in the past, if she could lower her commission amount. She said "No, if I do a favor for you I'd have to do one for everyone." We understand that times are different now and it takes longer to sell a home but things are different for us as well. Are some agents lowering their commission during this housing crisis? Should we go to another agent?
Are you prepared to take your chances with another agent instead of dealing with someone who has proven themself to you already, over the difference in commission? You may be, and in that case, let her know. She said no the first time, probably thinking that you were just asking, like everyone asks, and that you aren't going to really use another agent. She'd be lousy at earning her living if she simply capitulated to every request for a decrese in her fee, right? It's a negotiation, and until she sees that she has something to gain in return for lowering her fee, or something to lose by not, she has no reason to give up on her full fee.
As a retired Realtor, I can advise you that this is not fair to your agent. No. 1, you know she is a good agent because you have worked with her in the past. No. 2, this is a difficult economy, homes are staying on the is what you are paying for. Knowledge, talent, and professionalism. Anything else is penny wise and pound foolish; and any agent that is successful will not take half a paycheck. You need the best agent possible in this market.
But it's not about "fair". It's about being able to demonstrate value for the fee. You make some good points about why a good agent can demand a higher fee. But if the agent isn't making those points, demonstrating her value, then what reason has the seller to pay that higher fee when there are many agents who will take less?
I disagree with Quilter Chick that this has anything to do with fairness. You don't owe your past real estate agent anything. While some agents promote themselves as "your real estate agent for life" this is a business transaction. So having said that...
I think you'd be crazy to go with another agent just over a small drop in commission. You have an agent that has done a good job for you twice already so you know she is good. Yes, a few agents are cutting commissions to get business and sometimes it works out okay and sometimes it doesn't. I can tell you that in my market many agents are cutting commissions and then do nothing for their clients except MLS entry and photos because they can't afford to do anything else due to the fee drop. I personally wouldn't take the risk in this market. Selling a home is not easy these days. The market is different for you but agents have a business to run. If they cut costs and don't make a profit then they'd be better off flipping burgers at McDonalds. You want to work with an agent that is good and that isn't in danger of going out of business. I have seen more nasty behavior by agents in the past year than in my previous 7 as an agent. Do you want to risk getting one of those agents?
If you really think you'll get some great savings from another agent, look for other agents that market well and interview them. You know what a good agent does since you have had one so you know what to look for. You may find that extra fee and your previous agent is well worth it.
Silverfall, isn't that what I said ? And your Realtor does not owe you anything.
I don't think any seller would take a pay cut from their employer in any market. Why do sellers think it is okay to ask for a discount from a Realtor? It's been a never ending problem with commission sales, and many folks feel Realtors are fair game.
Silverfall, isn't that what I said ? And your Realtor does not owe you anything.
I don't think any seller would take a pay cut from their employer in any market. Why do sellers think it is okay to ask for a discount from a Realtor? It's been a never ending problem with commission sales, and many folks feel Realtors are fair game.
It IS ok to ask. Sellers SHOULD ask. People should ask ALL service professionals for the lowest price they can pay to get the job done they want done. And a real estate agent can respond by either reducing their fee or demonstrating how they are worth the higher fee. I contend that if I can't demonstrate to a potential clinet why I am worht the fee I charge, that I'm not worth that fee.
Silverfall, isn't that what I said ? And your Realtor does not owe you anything.
I don't think any seller would take a pay cut from their employer in any market. Why do sellers think it is okay to ask for a discount from a Realtor? It's been a never ending problem with commission sales, and many folks feel Realtors are fair game.
You said...
Quote:
Originally Posted by QuilterChick
As a retired Realtor, I can advise you that this is not fair to your agent.
Fairness has nothing to do with anything here.
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