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We have worked all morning getting payoffs from the lenders and title. I am giving up almost all of my commission to facilitate this transaction. If you could reduce your commission, I think we can put this deal together. This is the best we can do.
Counter says, "Seller's final counter offer shall be $226,000 plus Buyer's Agents commission."
What you should know is the seller bought this for $202,000 in 12/2005 with a $160,000 first. Then in 9/2006 got a $62,000 second.
Prices have mostly been flat for 7 years, here in the Metro Denver area. This owner used his home as an ATM machine. It might be worth $225,000 - $23,000 more than what he bought it for 2 years ago.
Other than putting in new hardwood floors, and a hot tub, the property has not been improved on.
Spelling it out;
1. A seller cannot use a counter to alter or change a coop fee offered in MLS. The contract is between buyer and seller. no brokerage fee can be altered within a purchase agreement.
2. Seller is getting $23,000 more than what he paid for it two years ago. I get to do my whole job, why do I need to cut my fee?
3. There are 14 other house for sale in this neighborhood. Why should my buyers deal with this seller?
Last edited by 2bindenver; 12-22-2007 at 10:24 AM..
Not completely sure what you are asking. I see Realtors cutting commission all the time if it makes a deal happen. A little bit of something is better then everything of nothing.
But now that I said that, this market is a whole new game that none of us have ever seen. That seller is in the same boat as millions of Americans across the country. He has to face facts. None or dwindling equity. His home is worth less then when he bought it in 2005. Sounds like there is no more room for negotiation without some one taking a loss. The only other option is contacting the mortgagor and trying to negotiate a short sale. I know you already thought of that though.
Bottom line is some one has to take a hit. The Realtor should make something, all the lawyers, title companies will charge regular fees anyway, and anyone else in the sale could care less. The buyer has to take the hit.
Hold on to your hats Realtors and home owners. This is going to get a lot worse in the next 3 years before getting better.
We have worked all morning getting payoffs from the lenders and title. I am giving up almost all of my commission to facilitate this transaction. If you could reduce your commission, I think we can put this deal together. This is the best we can do.
Counter says, "Seller's final counter offer shall be $226,000 plus Buyer's Agents commission."
What you should know is the seller bought this for $202,000 in 12/2005 with a 160,000 first. Then in 9/2006 got a 62,000 second.
Prices have mostly been flat for 7 years, here in the Metro Denver area.
Other than putting in new hardwood floors, and a hot tub, the property has not been improved on.
Did you Mr. Buyer say you want me to help you buy a house for you.
Did you Mr. Seller say you want me to work for free to sell your home, when you took $60,000 equity and spent it on something else.
Mr Seller and Mrs Buyer, my wife will not allow me to use the money that I earn to put food on my table to buy homes for other people. However, if you wish us to invest in a proportionate share of ownership in the home, then we may be interested
Mr. Agent, if you would like to help these clients buy the home with your funds, you are quite welcome to do so, but I don't particularly enjoy working for free, or using my earnings to help other people buy and sell homes.
Actually I do this job in order to earn money - not to give it away. These clients will have to make their deal with their own funds.
Or maybe they can ask their parents, children, neighbors, friends, pastors, attorneys, or other people they know to help them buy and sell their home.
Bill
...Bottom line is some one has to take a hit. The Realtor should make something, all the lawyers, title companies will charge regular fees anyway, and anyone else in the sale could care less. The buyer has to take the hit.
Hold on to your hats Realtors and home owners. This is going to get a lot worse in the next 3 years before getting better...
DesertSun, the Realtor should earn his agreed on fee. I would never give in to the tactic of getting the Realtor to cut fees to make a deal. (I'm not saying that's what you're advocating, but when you say the Realtor should make something, that is what it sounds like.)
Why should we be asked to bail someone out? People are constantly screaming that the government should not bail the homeowners and builders and lenders out for their problems. So why should the Realtors be expected to bail them out?
I never subscribe to the theory that "a little something is better than nothing". That's a very weak way of looking at it. The Realtor owes his/her client the fiduciary duties that s/he is contracted for. And she deserves to be compensated. S/he does not owe the client any part of her commission.
If the two parties can't come to a financial agreement to make the deal, then it's time to move on. The Realtor should accept the fact that the deal was not to be had and go to the next one.
Let's do the absolute best job (110% effort) we can for our clients, and let's stand up for the compensation that we contractually agreed on. If I can't make it in a business without having to give half of what I earn away, then I'll get out of the business.
If Realtors learn to "just say no" to commissionectomy, then people may eventually learn to not ask.
We have worked all morning getting payoffs from the lenders and title. I am giving up almost all of my commission to facilitate this transaction. If you could reduce your commission, I think we can put this deal together. This is the best we can do.
Counter says, "Seller's final counter offer shall be $226,000 plus Buyer's Agents commission."
What you should know is the seller bought this for $202,000 in 12/2005 with a $160,000 first. Then in 9/2006 got a $62,000 second.
Prices have mostly been flat for 7 years, here in the Metro Denver area. This owner used his home as an ATM machine. It might be worth $225,000 - $23,000 more than what he bought it for 2 years ago.
Other than putting in new hardwood floors, and a hot tub, the property has not been improved on.
Spelling it out;
1. A seller cannot use a counter to alter or change a coop fee offered in MLS. The contract is between buyer and seller. no brokerage fee can be altered within a purchase agreement.
2. Seller is getting $23,000 more than what he paid for it two years ago. I get to do my whole job, why do I need to cut my fee?
3. There are 14 other house for sale in this neighborhood. Why should my buyers deal with this seller?
The part I'm confused about is, if this is the offer, why do you have a need to alter your commission, if the deal is $226K + "your commissions". If your buyer is willing to pay them, what difference does it make to the seller if you cut your commissions or not?
The part I'm confused about is, if this is the offer, why do you have a need to alter your commission, if the deal is $226K + "your commissions". If your buyer is willing to pay them, what difference does it make to the seller if you cut your commissions or not?
What if the house won't appraise for more than $225?
Techincially he is not getting 23K more than 2 years ago. If you take out the commission (which you have to do) and all other fees (possible transfer tax, etc..) its less.
Just like you don't make "a full 6%", the buyer/seller makes less too.
Techincially he is not getting 23K more than 2 years ago. If you take out the commission (which you have to do) and all other fees (possible transfer tax, etc..) its less.
Just like you don't make "a full 6%", the buyer/seller makes less too.
I understand that, but if the counter offer is
$X + buyer paying the buyers agent commission, I'm not sure why the seller would care if the buyer is willing to pay the buyers agent 100% of their due commission or 0% of the commission.
Maybe I didnt word my question right but
Why make a counter offer contingent upon a buyers agent lowering their commission, and then on the same counter offer, make the buyer pay for commission fees for the agent? The seller isnt paying them (per the counter offer) so why would the seller care about what the buyer is paying to the buyers agent in commission charges, if a buyer accepts the offer?
Or am I mis-understanding the posting?
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