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I have to pay commission on what?

By Bryan Washington

Real Estate Agent with Keller Williams Realty, Eugene & Springfield

January 30, 2008 01:13 PM

I am settling on a listing tomorrow, which is great.

My client calls me yesterday and asks what the commission is paid on? It's 6% of the gross sales price. The property sold for $183,000 with a $5,000 seller assist.

He says it's ridiculous that he's giving 5k to the buyer, but has to pay on the $183,000. I explained to him that per his listing contract and on the closing cost estimate, that it's based on the sales price, not the net.

Ever had this happen? What do you do in this case? It's not a big deal, it's only $300 of commission dollars, but I did carry this property and worked hard to procure a buyer for my client. If I were to change it now, the $300 would come directly off of my commission and not be split evenly.

Why would someone wait until 2 days before closing to complain about that?

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Darci Gullett

RE/MAX Platinum - Fowlerville, MI

LOL I know how you feel.. I had a full boat offer in Michigan of all states.. and the buyer wanted concessions. Pretty normal. But the seller did not want to pay commission on that. To protect the seller I did an addendum to the buyers agent to go off of net. I know in todays market that is a tough one to swallow. But sometimes I find my self doing things just to make everyone happy and still put money in my pocket... GL to you

Jan 30, 2008 01:26 PM

Judi Glamb

Coldwell Banker Hearthside - Hellertown, PA

Associate Broker, ABR

Bryan, I've seen the practice change, at least in our area, where now it is more common that the commission dollar is taken off the net when a sellers assist is given. It may be even be standard practice in our company.

As an agent on either side, I've always based it off the net for sellers assist on the coop commission form that is put in with the agreement. I don't think the seller should be paying commission on a seller's assist that is agreed upon at the start.

Now, for any post agreement seller assist or credits disquised as sellers assist - this is a different matter.

Jan 30, 2008 01:32 PM

Rob Aubrey

Cottonwood Heights, UT

Let's role play

Agent: Now that I have sold your home, who do you know that I could help buy or sell?

Sell: Remember the discussion over three hundred dollars. go */%$

Obviously it is a big deal to you or you wouldn't;t be having the conversation.

I have no problem not being paid on concessions. I prefer to know a little in advance. But the seller doesn't view that money as the sale price, that is for the lender because it is part of the loan. If you I were you I would give the seller the $300 and get the referrals.

Jimmy McCall

JimmyMcCall.com - Cunningham, TN

The Ex-Mortgage Consultant

Bryan,

The client just realized it. Thoughts always come to people after the event happens. Here is a list of questions you should ask yourself before you make your decision:

How is your relationship with the seller?
Will the client refer people to you?
Will the client purchase a future home in the market?
Would the clients disatisfaction cause you business via verbal venting?
Who does this client know?
Was this client worthy of a $300 gift?

Jan 30, 2008 01:49 PM

Bryan Washington

Keller Williams Realty, Eugene & Springfield - Eugene, OR

It's my dentist, I doubt he's going to trash talk me. I sent him the HUD and he was okay with it, it didn't even come up at settlement.

I told him I would do my best to get it changed, but being so close to settlement it might not be possible.

Everything went fine...I'll give him a root canal in the future. ;-)

Jan 31, 2008 06:13 AM

I have to pay commission on what?

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