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I've heard this a few times recently, once in negotiations and another at a recent gathering with friends. I gotta tell you that this is one thing that really doesn't sit well with me when I hear it, yet this is a common thing that many people think.
While in negotiations..the remark went something like " Oh, you just care about getting the house sold..and a few thousand more is better for you anyway, right? " This was said jokingly...but again...it's what many people think. My response was "Yes, I do want your home to sell, which is why you hired me..but it's your home not mine, so if you don't want to go lower, than I will support it and we will go from there.
I also enlightened this seller as well as my friend on the realities of what a commission would actually be for a few thousand dollars. At the gathering, the discussion we were having was about a difference of $5,000 dollars in a sale price. What's the reality of how much we actually would get for that extra $5,000? Let's do the math shall we?
Say the home was listed at $200K and the co-op split was 2.5% (random percentage used here as example) ...which comes to $5,000. What would be the difference in the commission if the house was $195K? ..using my calculator here. ..ok, it would be $4,875. WOW...that's a WHOLE WHOPPING $125 bucks..to which I have to split and pay taxes on.
I just read a lovely (bit of sarcasm here) article titled "Why You Can't Trust Real Estate Agents When Buying A House" by Mike Holman which spurred this post. Yeah, I should have just ignored this, but it is something that is out there..and something that is really isn't true in most cases...and it really isn't giving a buyer or seller great advice in my humble opinion. In it Mike goes on to say:
"Thinking about putting in an offer – Trust no one!" ..and then further down in the article "Negotiation – don’t listen to a word your agent has to say"
"The point when the buyer submits a offer on a house is a time when a lot of house buyers – particularly first timers feel out of their element and defer to their agent for advice. This is the worst thing you can do. Your agent gets paid when the deal gets done and only when it gets done."
Hmmm..not taking your agents advice is the worst thing you can do??? Really?? Since our business relies heavily on referrals or word of mouth..and unhappy client is not something we like. If you can't or don't trust your agent, then you really shouldn't be working with them. A good agent will do a market analysis before writing up an offer and go over all the comparables with you help you make a sound offer. If the home is $200K and the comparables are all coming in much lower, than a good agent will recommend where your offer should fall in after going over them with you.
Whether you're buying or selling a home, working with a good agent means they have your back and are NOT thinking about getting you to pay more than you should so they can pocket that extra $125...or whatever it is. I'm not naive enough to think that there aren't some bad agents out there...cuz there are. Whether buying or selling, working with an agent you trust is very important. They will help you make an informed decision on what is probably the largest asset you have. The bottom line is though...that it's always YOUR decision. I've never heard of an agent that hog tied and forced a client into signing papers.
Want to work with a good agent? Give me a call.
PS: Although this post has the word "commission" in the title the numbers used were just random numbers to make a point. Please if making a comment refrain from using any commission percentage specifics as in "We always get $$$ %" Thanks :)
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.