Real Estate Blog - Commission, do want to survive?

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Commission, do want to survive?

Commission, it's what we full time agent's exist on.

Question to the full timer's....Do you adjust your commission in this market to make a deal work? Or do you walk away from the deal? My RE attorney and advisor, the owner of the title company that I love to work with say's this, "Any deal, no matter what you have to concede in this market is better than no deal at all."

Do you want to survive? Do you swallow your PRIDE, and do what's necessary?

The market is tough, Do you want to survive? Have you taken a second job?

How do you manage yourself in this market???

I'm proud to say...creative is the way to go, let's make a deal...what do you do?

http://www.karenmonsour.com, 954-464-4194 cell

Posted by Karen Monsour,REALTOR® Broward,Palm Beach,Miami/Dade! 954-464-4194 anytime! on 04/11/2008 09:25 PM

Comments (39)

commission, pride, karen monsour, real estate, survival, current market

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39 Comments on Commission, do want to survive?

APR

2008

Hello Karen, It depends on the situation as to whether or not I reduce my commission. If the seller needs some help or it is my idea, I will reduce the commission, if the seller is pushy, arrogant and/or expects it then I will walk away as I know the the business relationship will be miserable. I learned the hard way after 24 years in the business.

Jean,

I reduced mine again...I saved my customer so much $$$ to make this sale work. If it wasn't for the benefit of a church, I might have thought differently. I don't think the seller need's the $$$ at all, but to facilitate this deal for the church, I did...guess it's scary a little...who would ever want to upset the Bishop...or the Archbishop?

Yes, if my seller is willing to make the deal work, then I am willing to help too.

It's a win-win.

Linda

No, the answer to that question is always no. How can you stand up for the price of the home if you can't stand up for your commission. Besides, if you negotiate your commission up front you have nothing to negotiate with later if perhaps you bring the buyer and have room for negotiation. Also if you plan on putting out reduced commission to your fellow realtors you risk less showings. We are not in charge of what people buy, we are in charge of what they see and I am showing homes with full commission and will make very little effort to show a home offering reduced commission. Why should I work harder for less because you can't get the listing without reducing commission? Speaking hypathetically of course! In this market it is NOT in the sellers best interest to reduce commission, in fact, they should be offering bonuses at this point in the market.

Linda,

Getter done! A little money is better than none and my favorite title company and the lawyer owner will take a cut too...I mean...getter done...just give them a bunch of business cards and ask for referrals.!!!! :-)

Hey Karen,

I've always been in the believe to adjust my commissions in order for a deal to close. getting paid a little bit is better than 100% of nothing.

Sean Allen

Patrick,

This has been 4 month's of negotiations. it wasn't done up front. I started out with them $200K apart...AND I HAVE the seller and buyer and then the buyer and seller on two consecutive deals with the seller of the first home being the buyer of the second. AND, JUST FYI, NONE OF THE PROPERTIES ARE LISTED, I JUST KNOW THE OWNER'S WANT TO SELL...also, the seller's aren't the one's in control of the commission on the listings (these aren't even listed properties) it is the agent's. It would be nice if they offered bonuses...

HOWEVER...IN THIS MARKET, ANY SALE IS BETTER THAN NO SALE!!! HOW MANY DEAL'S HAVE YOU SOLD SINCE JANUARY?????

NO IS NEVER A GOOD ANSWER, AND OPEN MIND AND A CREATIVE WAY TO CLOSE DEAL'S IS WHERE IT'S AT IN THIS MARKET. AMAZING...TO ME...READ THE POST, THEN REMARK THE NEXT TIME. THANKX.

Sean,

Thank you very much for supporting what Ijust posted to Patrick...he must know something we don't! LOL

I just took a deal this past week and the borrowers asked me to reduce my commission. I said no and they said "are you sure?" I said yes and they said OK. I made fair money and they we're treated well. Today they thanked me immensely.

I'd have to say that waiving part of your commission to get the deal done is the best way to go. When it is a truly slippery closing, then sacrificing a little glue might save your image in the long run. Besides, it isnt as if contracts are exactly melting the fax machine to the desk...

Larry,

I'm not loosing a potential $1 million dollar transaction over $15K...I'd rather change my commission than loose the deal in this market.

I'm not greedy and I am looking for future referrals from this deal...they are both very connected...sometimes you just don't cut off your nose to spite your face.

A deal's a deal and future referral's are worth it. What goes around comes around. I'd rather have 2 deal's and 3 happy people who felt I did them right than no deals. AND, 3 well connected happy people to refer to me than none.

Just my humble OPINION! :-)

Darrel,

Exactly, and I have also found the perfect townhome for the seller's of the first home. So selling the first home to my buyer. Found a townhome for that previous seller...I mean come on!..Let's make a great deal..

I have 3 people involved, no home's were listed...just connected...helping out some people...A sale's a sale and in this market...you work it, n you work it good!

Thanks for posting.

Karen, You sound like you speak for all realtors in this post and your comments. You asked a question, and iI will answer it. I do not lower my commission, Ever! I am a professional and I earn my commission. If the buyer cannot afford to buy the property you should have pre qualified the buyer before hand. I don't ask the buyer for any of his or her paycheck. I don't want anyone in my pocket as well. I have built a reputation. I have repeat clients from all over the world. None of them ask for my commission. For your information, since you seek proof of my experience, I have 14 closed sales since January. I have 6 pending. I have three investors flying in from Canada on Tuesday to buy property. I sold their father three already this year.None of them asked me for my commission. I guess if you are not strong enough to protect your commission, how would any buyer or seller have respect for you to sell their home or negotiatr a good deal for them. Just my opininion. If you want to give your commission away, that is your business. But I would not be bragging about it to the public. If you don't watch it, you will be out of the business before long, especially in this market.

APR

2008

I think Gary Keller says it well in the title of his book, "The Millionaire Real Estate Agent: It's Not About the Money...It's About Being the Best You Can Be!"

Part of my job description is to help make deals happen. Commissions are always negotiable. And if a little give on my part does that. I do it

Ron,

Thanks for the support. I got beat up above you and I responded below you..like a sandwich! LOL!

Ummm... Karen.... that reply to Mr Money bags was... GREAT!

I'm still putting my responce to him together but I dont think it's needed now.

Karen.... Great Point.. I have always been a firm beliver that something is better than nothing. Now I will not just volunteer to give away my hard earned $$$. I just lost a deal yesterday that I was actually willing to give up a BIG chink of change just to get it closed and then the underwriter canned the closing.

Always remember... if you have to give a little, that is better than loosing it all

Karen, real estate is my hobby as well. I do it for the "fun" of it and the money just come. Service is key and if it takes a little cut to make the transaction close, then by all means I would go ahead with it. This is in no way or shape indicative of a passive stance on protecting our commission.

Nick may have his point in holding firm onto his commission and I can understand his reasoning behind it. However, that is not to say that all sellers and buyers think that way. Real estate is a customer service oriented field and we need to be flexible at times. We must become water....changing and adapting ourselves to whatever shape we are placed in.

Karen, I hardly ever reduce my commission. I tell my sellers....if I can not even negotiate for myself, how can I negotiate for you? I know...sometimes the transaction will not go forward unless you do and you have to make the decision that is right for you but don't give your VERY hard earned money away so easily.

I just wrote an offer for a buyer this week and included a home warranty that the seller was to pay. The listing agent negotiated the offer without reviewing the entire contract and then saw the warranty after he *started* negotiating. When he noticed it, he said, well, I guess I am going to have to pick that up. We were still negotiating at this point. I just thought, why? Let your seller know it is there and see how they want to respond, right? I just thought he gave his 400. away too easily. The negotiation is between the buyer and seller, not us.

I agree with your RE Attorney, some is better than none and this market is not getting easier.... yet....

Your Friend in Charlottesville Virginia!

It's better to make a nickel that to not make a dime... or something like that.

I think it all depends. Every situation is different. I've cut my commission so a buyer can purchase but I've yet to cut a commission for a seller.

Karen,

The reason I answered that way with the qualifications is how you answered Patrick.

I never said you weren't a good realtor, I said you needed to be strong when it comes to YOUR money.

If you continue to give away your commission, you most certainly will be out of business period.

It takes alot of money to be a realtor, advertising, marketing, websites, etc.

Consumers have to be aware of that, and when realtors give away commissions to buy business like

Zip Realty. It is disgusting how these companies get business by advertising 1% commission back.

I also feel it adds to the mortgage crisis. If customers can't afford to buy, and are asking for help from their realtor, how can they afford the payments?

And when it comes to churches in the case with your deal, I think it is a shame that they are sticking their hands in your pocket.

I agree with Debra, sellers and buyers need to negotiate between themselves. We just bring them together, and thats our job. The rest is up to them, we have to keep emotions out of it.

I don't believe we must change, and become like water.

We must protect our profession, otherwise the consumers won't.

I don't know what is so hard to understand about that.

It is not personal, I am not attacking you.

I am attacking the mindset of realtors giving away their hard earned commissions.

Mr. Moneybags

Karen - considering your response to Nick's very reasonable points I am guessing that this is more of a hobby for you than a career. If you think receiving your full commission is - in your words - screwing them ("I'm strong enough in this business to not need to "SCREW" my customers"), then why would you ever charge anyone full commission? If you have ever done a full commission deal, then by your very own words, you screwed your customers. I simply don't understand your point.

Finally, you asked for opinions and when you got one you didn't like, you attacked the contributor. Makes no sense to me. You actually said "How do you manage yourself in this market??? I'm proud to say ...creative is the way to go, let's make a deal...what do you do?" and Nick told you what he did and how he did it?

Karen,

Do you have trouble making friends? Really! I think Nick is right. Do we ask our Doctors, Attorneys, etc... for a price cut? No! Would they do it? Probably not! I am a professional and I earn my money from doing a great job!

I do give them options. This percent and what that gets you or another percent and what that means to you. I may start offering a third option that is higher yet because of the internet marketing I do on my own time and money.

John

Simon.

If I have the buyer and seller, I give them a break on the commission, that is my style. I deleted my response to Nick and I was going to delete his as well, this was not written to become an argument or an attack on anyone, it was for opinions.

John,

No not really. No one asked me to reduce my commission. I did it to try and facilitate the deal of my own choice.

I have had 11 closings and have 7 under contract now. I live in a remote, far off place in the middle of nowhere and still manage to pull of sales due to my consistency, my knowledge, my skill and my honesty. I think you ware wasting your time negotiating with someone not listed. Just my opinion, BTW, I DID READ YOUR POST BEFORE COMMENTING. I JUST DIDN'T AGREE WITH YOU, and now that I know more, I REALLY DON'T AGREE. SEEMS YOU SHOULD HAVE AN OPEN MIND TO OTHERS OPINIONS, after all you asked the question. Good Luck to you, sounds like you need it.

In this market, yes I am getting creative in my commission structures. I have cut my commission to make a deal go. This week I was at a FSBO appt. 2 other agents came in before we and walked out when she refused to pay their asking price. She is an ex-agent and insists on trying FSBO for 3 weeks, then says she will list if she doesn't find a buyer. I told her if she finds a buyer, to call me and I'll write up the paperwork, represent her and move it to closing for $x. Today my son went over and helped her weed the garden. I am building trust and a relationship here. WHo do you think she will call when she doesn't sell in 2-3 weeks? Not the 1 agent who told her "6% or nothing" and walked out. Not the other agent who laughed at her when she said she wanted to try FSBO for 3 weeks. No... it'll be the one who promised to be there even WITH the FSBO sign in the yard, helping at a flat fee basis, for whatever services she needs (for a price).

Patrick,

I am happy and doing fine, just trying to help a few friends...the homes are not listed, I just know they want to sell and the match was perfect...I don't need luck...but thank you. If you don't agree that's fine...This is for opinions. not for fighting. What are friend's for, if you don't help them out...never know when you might need their expertise, why not?

Erica,

Sound's like you are doing everything possible for a deal...I mean really, your son was weeding her yard...

Sound's to me like you are a great agent! You do what it takes. Thank you for proving to me there are agent's out there who have a spine!

Hey--the kid made $10/hour pushing a wheel barrow. Not bad for a sunny Saturday.

Erica! you go girl!!! Sound like you think like me...What ever it takes to make the deal! :-)

Karen - I like you a lot. You know that. But this blog post is bizarre. You clearly didn't want opinions even though you asked for them. You simply wanted people who agree with you to post. I don't see the point of this at all.

Karen - We're not in the "any deal is better than no deal" camp on this one. Generally, we don't cut commissions. We are professionals, and our unique market knowledge and skills are what our clients are paying for, and we're not shy about telling them that up front. AR is full of stories about the trouble transactions can run into, and the creative solutions of professional agents - that's what we are getting paid for!

Two exceptions: if we are doing both sides of a transaction, we may give up 1%, especially for repeat clients. If the property is not under contract with a realtor (an atypical transaction), then maybe - just maybe - we would consider a discount to make it happen, depending on the circumstances and the risk of things going wrong with the transaction. Good post!

Karen

You've struck some nerves, obviously. Bottom line is that EACH OF US is an independent contractor.

Commissions are negotiable. We can charge a percent. We can charge using a schedule of fees. We can set a flat rate.

If the client knows and understands our fees and what he/she is getting for the fee, then it is fine. If we are happy with the amount we receive, that is fine.

This is a business and we are all free to charge what we wish.

Erica,

Thanks for posting...I guess I did strike here, but you know...your are right..."EACH OF US is an independent contractor"...meaning for what I'm understanding is that it is our choice.

Thank you for posting.

APR

2008

As Lenn said, We are all Independent contractors. What you do with your business is your own business. I choose to negotiate to make a deal happen...in this market. Some sales are better than no sales, and referrals are very important. In South Florida...there is so much inventory and so little buyers...so a deal is better than none.

APR

2008

In this day and age, I work with my clients. Although mortgages are a little different animal than what you guys do. to survive in my business, you need to bend.

Casey,

In this market, we all need to bend. Those who protest that they don't need to are way beyond me.

Thank you for posting on my blog. And Welcome!

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