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Real Estate Commissions Are Negotiable

By Margaret Rome Baltimore 410-530-2400

Real Estate Broker/Owner with HomeRome Realty 410-530-2400 311291

July 03, 2011 04:29 PM

Real estate commissions are negotiable!

I have been protecting my commission since my very first listing. There is a Floyd Wickman audio tape "Protecting Your Commission" that I was part of way back in 1996. My position has not changed

Commission HomeRome 410-530-2400

I choose not to negotiate. I follow my own standards and list at one of the highest, if not the highest rates, in the area.

The seller used to have a choice. I would hand write at the top of my listing contract.

"x%,x%,x% or x%...please circle one."

When a client would ask for lower commission rate... I would say that is not one of your options. When they asked what they get if they picked the highest one..I said..you will get your house sold.

Today I do it differently. My commission is x%. I turn away quite a few but the ones I have are the ones I want to work with. Being a solo broker I limit my listings to fifteen and have a waiting list.

There are times when I am the 2nd or 3rd agent after they have tried a -X% broker. It is expensive to work with a professional...even more expensive not to.

Real Estate Commissions Are Negotiable and sometimes.. you get what you pay for!

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Marge Piwowarski

Phoenix AZ Horse Property - Phoenix, AZ

Phoenix AZ Horse Property, LLC

Yes! A professional after my own heart. The way it should be.

Jul 05, 2011 05:48 PM

Margaret Rome Baltimore 410-530-2400

HomeRome Realty 410-530-2400 - Pikesville, MD

Sell Your Home With Margaret Rome

Kathy,It's not about the commission It's what you bring to the transaction.

Marshall, You have established your reputation.

Marge, Thanks for stopping by.

Jul 05, 2011 10:56 PM

Anonymous

Kim Lookabaugh

Great post! My commissions are not negotiable either. Now days - it is usually the third listing agent that gets the sale anyway! By then - sellers are getting realistic!

Jul 06, 2011 12:55 AM

#81

Deb Espinoza

Stage Presence Homes, San Diego Real Estate - Ramona, CA

GRI, Broker, SRS,ABR ePro, SFR, CNE

Awesome post Margaret! and I too, LOVE your quote about it's more expensive NOT to work with a professional. If we are confident in our worth and abilities it will flow over onto the clients that will appreciate working with us professionals. Thanks for sharing!

Jul 06, 2011 04:45 AM

Margaret Rome Baltimore 410-530-2400

HomeRome Realty 410-530-2400 - Pikesville, MD

Sell Your Home With Margaret Rome

Gerald, You have set standards for your own business.

Kim, That happens that the seller gets realistic after several agents.

Jul 06, 2011 04:45 AM

Margaret Rome Baltimore 410-530-2400

HomeRome Realty 410-530-2400 - Pikesville, MD

Sell Your Home With Margaret Rome

Debbie, You have to be confident that you are the best person for the job.

Jul 06, 2011 04:48 AM

John Juarez

The Medford Real Estate Team - Fremont, CA

ePRO, SRES, GRI, PMN

Great post, Margaret! It is very important to know what we believe in and stand by our convictions. Getting paid appropriately is high on my list of professional beliefs.

Jul 06, 2011 06:59 AM

Gene Riemenschneider

Home Point Real Estate - Brentwood, CA

Turning Houses into Homes

In general I think you are right. I have taken less than X for an investor who I will be listing several homes for.

Jul 06, 2011 07:53 AM

Tammie White, Broker

Franklin Homes Realty LLC - Franklin, TN

Franklin TN Homes for Sale

I think it's much easier to turn away a client prior to listing with them. I recently had a seller who asked me to drop my commission. The listing was about to expire. I already had $500 into marketing the property. My choice either drop commission or he was going to walk. I reluctantly dropped it on the condition he would reduce his price and use me for the buy. He did. And now we're under contract and looking for homes for him. If all my clients dropped me before I got paid, I'd be in a bad place.

Jul 06, 2011 08:05 AM

Anonymous

When I was a new agent it was simple, the board/mls had a schedule of commissions that was mandatory. When the feds became involved and articles about negotiable fee started p0oping up everywhere you would get get that question what is your commission rate, or is your commission negotiable.

Finally Instead I just started saying yes they are, isn't that great, now tell me do you want your home just listed or would you prefer that you get it sold for a good price? I have several plans I offer depending upon what you want to do. That usually disarmed them, but it was the old a, b, c. or d and usually a, b, and c sucked.and they knew it.

Jul 06, 2011 11:10 AM

#88

Anonymous

Hillary Gibbons Wyss

Horrrah Margaret!! It's great to see someone take a stand on a subject so near and dear to may real estate professionals hearts. I am of the firm belief that "times are changing"...and those that showcase what makes them truly unique will rise to the top. There will always be a market - willing to pay top dollar- for your seasoned expertise.

Jul 06, 2011 02:02 PM

#92

Michele Connors

The Overton Group, LLC Pitt & Carteret County - Greenville, NC

Your Eastern North Carolina Realtor

Great post Margaret! It also costs the professional money to be a professional. I look at it this way: If I can negotiate my commission well it should reflect to the seller that I will negotiate their offer (s) well !! :-)

Jul 07, 2011 04:03 AM

Todd Clark - Retired

eXp Realty LLC - Tigard, OR

Principle Broker Oregon

I'm a Floyd graduate myself and my favorite line to some one who has an expired listing that says "My last agent only charged _%" I then get to answer and your last agent didn't sell it now did they, do you want to relist with them for another six months and pay six more months mortgage? By the way, let me do the math for you six months at $______ per month, that equals an additional 4% commission, so what do you want to do?

Jul 08, 2011 05:58 PM

Margaret Rome Baltimore 410-530-2400

HomeRome Realty 410-530-2400 - Pikesville, MD

Sell Your Home With Margaret Rome

John. Knowing how to set your standards and then following through.

Gene, Thanks for stopping by.

Tammie, We do not get paid if the house does not sell.

Hillariy, There are people willing to pay for the best.

Michele, I think negotiations is what we earn our pay with.

Toddd, Floyd had some great dialogs for us.

Jul 09, 2011 01:58 AM

Tamara Schuster

Naperville Glen Ellyn Lisle Plainfield Wheaton Illinois - Naperville, IL

Realtor Broker - Naperville

Love the blog Margaret, as I do all of yours. I absolutely never negotiate commissions on my listings as I go up and beyond to make sure their home is marketed to the full potential it deserves and do i can to make sure the exposure is unbeatable. My upfront costs are high and continue through out the selling of their home . I will not sacrifice commission and continue to exceed expectations.

Jul 20, 2011 05:50 PM

Margaret Rome Baltimore 410-530-2400

HomeRome Realty 410-530-2400 - Pikesville, MD

Sell Your Home With Margaret Rome

Tamara, Glad you are reading my blogs. I like the way you think.

Jul 20, 2011 05:52 PM

Matt Robinson

Professional Investors Guild - Pensacola, FL

www.professionalinvestorsguild.com

Great point indeed, and I respect your decision to limit your business, and to expect a premium for your services. I won't take overpriced listings, but for the right client I will at times reduce my commission, more as a thank you for past business than anything. However, I'm glad your business model is working for you.

Jan 03, 2012 04:28 AM

Margaret Rome Baltimore 410-530-2400

HomeRome Realty 410-530-2400 - Pikesville, MD

Sell Your Home With Margaret Rome

Matt, Just noticed you were my 100th comment and I am 6 months late responding. Thank you.

Jun 04, 2012 11:03 AM

Lynn B. Friedman CRS Atlanta, GA 404-617-6375

Atlanta Homes ODAT Realty - Love our Great City - Love our Clients! Buckhead - Midtown - Westside - Atlanta, GA

Concierge Service for Our Atlanta Sellers & Buyers

Dear Margaret,

Congrat's on the 100 comment level. It is great when a post stimulates a lot of response. Your fiem standards are admirable.

Have a happy day -
Lynn

Jun 06, 2012 10:48 AM

Margaret Rome Baltimore 410-530-2400

HomeRome Realty 410-530-2400 - Pikesville, MD

Sell Your Home With Margaret Rome

Lynn, Thanks. You are always so supportive.

Jun 06, 2012 11:22 AM

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