Home : Blogs : Affordable Homes in Florida : Affordable Winter Homes in Florida - Investing in Florida

Do agents look at the commission %?

I was surfing around some real estate web sites on the internet hoping to come up with today’s topic. You see, posts on this blog are usually based upon reader questions.

I came across a question posted on Trulia that I think might provide some interesting insight for some people who are trying to sell a home in Tama Bay. The question was about getting more agents to show a home that is already one the market, and asked: Do agents look at the commission %? If you saw a house that had 4% instead of 3% would you show it more?

This simple question actually brings up quite a few key points that homeowners should know when trying to sell a home. The reason that I think it makes a great discussion point is that currently there are 146 responses to this question at Trulia, and I suspect there will be more to follow. So folks over on Trulia have a lot to say about this, so I’ll chime in with a few points of my own. Is this a buyer’s market? The first thing that comes to mind when I read this question is that some homeowners are thinking they should consider a discount broker. Without being rude … Are you kidding? It has never been more difficult to sell a home in Tampa Bay than right now, do you really want to hire somebody who is willing to cut their fees?-Here’s a quick analogy for you…Hiring good help is always relative to the task at hand. I wouldn’t pay $1,000 per hour for an attorney to help me with a speeding ticket. I’m sure there are plenty of “discount” attorneys who could help me with that problem. But would my thoughts change with different legal problems? What if I’m being sued by somebody for hundreds of thousands of dollars? Sometimes it is worth it to hire the best.

Choice Real Estate Spots in Tampa

Westchase Real Estate | New Tampa Real Estate | South Tampa real Estate | Luxury Real Estate in Tampa

Posted by Affordable Homes in Florida on 09/17/2009 08:47 AM

Comments (11)

Real Estate Commission in the ActiveRain Channel

real estate commission

This post has been included in Florida Information
Post is included in group: The Lounge at Active Rain
Post is included in group: TeamTopics
Post is included in group: Realtors®
Post is included in group: Dedicated Bloggers
Post is included in group: Almost Anything Goes

11 Comments on Do agents look at the commission %?

SEP

I feel it is always worth it to hire the best. Of course I look at the commission. I look not because it will dictate to me to show or not to show a property … I look because it gives me my first clue about the listing agent. If the commission is full commission I stand a good chance I will be dealing with a true professional. If it is not full commission then I am likely dealing with a weak agent and that means I’ll doing most of the work, chasing disclosures and the transaction will be more time consuming to manage. Any agent who discounts clearly brings no value to the table!

Yes, but there is also a different angle. I am pricing it below what others are asking, so it should be relatively easy to sell. So, then I would save a couple of thousand of dollars on commission.

I am playing devil's advocate here.

The product is what drives me to show the property to my client. I do not judge the agent, the property, nor the seller based on the commission percentage. In this tough market, when seller's are bringing checks to the closing table, I have no problem accepting a lower commission whether I'm representing the seller or the buyer in the transaction.

-Karin :)

www.propertypromenade.com
Your Source for Local Real Estate

I saw that question on Trulia (I may have even answered it, I don't remember).

Here are my thoughts on the subject: Offering a bonus or a higher than expected commission isn't going to sell your house any faster unless the property is in the middle. Middle price, middle condition, middle location, etc.

My reasoning: I'm looking through the MLS and deciding which properties to send to my client. There are 20 places that are pretty much the same in terms of what the client is looking for and value vs. price. They all fit the criteria, they're all about the same value for the money. I am going to give the ones for which I'm making more money more exposure. Am I going to push that property on the client or try to convince them that's the one they really want? No, not in the slightest. I'd rather see a buyer complete a sale on a house with a lower commission than try to push them into something with a higher one and see them walk away. I'd also have a hard time sleeping at night if I thought there might be something better out there for a buyer that I didn't show them because I was trying to make more money.

If you have a great home, in a great neighborhood at a great price, that's what is going to sell it. If you have a bad house in a bad location at a bad price, you're going to have to have a really pushy agent to get someone into it based on the extra money (and an unethical one, in my opinion). If your house is in the middle of the pack, a little push with a bonus might get it in front of more eyes than the competition and thus help it sell a little faster.

Oorah, Julia! Well said, I agree with you 100%!

-Karin

I think it's the reverse....it's human nature to look at the commission and it does say quite a bit. I would probably not work very hard to sell a very low commission. There was a 1% listing which required the listing agent to be present and she never returned phone calls....probably getting 1% on her end too....I tried a few times, my buyers were asking..and then gave up. I was not going to work that hard for that little. But truthfully? I'd have negotiated the commission higher in the offer :)

The first thought that came in mind to me was the seller was considering an additional commission to the buyer broker in hopes of generating more showings. I do look at commission, its my job to do so. I also look at many other factors as well to advise my client.

I once recieved an agent generated email offering the full commission less 500 dollars. Why? I have no idea. I absolutly took notice though and starting working my database and dug deeper. I wanted the contract. It was listed by a well respected agent, the property was priced at market, it was worth a second look. The property went under contract within 4 days (not from though).

I'm not sure if the typical agent would look at the commission before deciding to show the property, but I know that bonuses tend to help get more showings, and offering less commission is a quick way to not get any showings at all. I don't think this is greed as much as simple self-preservation. Why would I go out of my way to sell a home offering 2% to the buyer's agent when the one next door is offering 3%?

I think that it is in our best interest to show ALL homes that are available (Esp within certain communities that they are interested in) to our clients!! Will we try to SELL the homes with a lower co-broke offering?? :)

Remember that 90% of litigation/meditation is generated from the buy side of a transaction!! Stay above board!! Continued Success!!

I don't think it should even be a question. I'm going to show the home to my client whether there is a bonus or extra commission offered or not. It's my job and I am to place the client's interests above my own. Do I check the commission? Yes, because if they are offering less than what I have negotiated with my buyer-client, then I need to have a discussion about that with them before showing them the house. As long as the commission is at least at the level I request from my buyer-clients, it is not an issue. Would I push to sell a house more than another because it offered a higher commission? No. I just had a case of this recently. One home offered 4%, one offered 3%. They were the exact same home (condo). The 4% wasn't in as nice of shape as the 3% one and in talking to my client, we agreed that the 3% house was the better (and less expensive) choice for them. I "lost" 1% as well as the difference in price that would have bumped my commission up more than 1%. Do I care? No. Would I have loved the few extra dollars? Of course I would have. But my client's interest is more important to me...especially since I know that my dedication to them and their interests can bring me more business in the future.

I have had many agents over the years mention commission amounts to me since the ones I have a good relationship with as their lender have a confidence in me. YES agents do pay attention to commissions. I knew that before I bought a real estate company a few years ago and I knew it when I became very active in the real estate investment industry.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?