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4 Comments on Cutting Real Estate Commissions

OCT
05
2009
205,223 Points 1 Featured Post

Sarah, I have shown homes that were giving $1.00 to the cooperating Broker.  The property fit what my client was looking for, so I showed the house, without regard for the commission.  However, even here on Active Rain, I read comments all the time, that people will not reduce their commission and they will not work for less commission.  Some people just don't want to make $1,000 when they can make $2,000.

I have reduced my commission in some cases, and especially where the seller was walking away with no money or next to nothing, but even in those cases, I gave the same commission to the cooperating side, and kept the lower portion for myself, for fear that the house wouldn't be shown.

Yes, I agree.  It's unethical.  But as we all know, there are unethical REALTORS out there.  When a client is in desperate need to sell, I just won't take the chance.  I'll even offer more commission sometimes, even if it means I walk away with nothing, to help the client.   My main concern is looking out for the client's best interest.

 
9:03am • #1
218,102 Points Localism Sponsor

Sarah:

In this tough market, when sellers are coming to the closing table with a check in hand, I have no problem reducing my listing commission.

Also, I do not judge the property, the agent or the seller based on the amount of commission offered to the buyer's agent.  If the property fits the criteria that my client is seeking; I will show the property regardless of the commission.

However, I am more than certain you will hear the opposite from other agents.  What a heated topic this is always is!!

Best of luck to you and your client!

-Karin :)
9:05am • #2
Localism Sponsor

I thank you for your honesty. I'm glad to know that there are still agents like you with a heart. It can't always be about the money.
9:09am • #3
Attended Rain Camp

I would definitely cut my commission especially in the situation you described.  That is just the honorable thing to do.  I also show every home that meets my clients criteria regardless of commission but I do believe there are REALTORS who will avoid properties because of the commission.  Not every REALTOR stayed awake during ethics class.
9:14am • #4


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Fedua "Sarah" Bandy

Colts Neck, NJ

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Re/Max Signature Properties

Address: 524 Brighton Avenue, Suite 9, Spring Lake, NJ, 07762

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