Honorable Christopher Dodd

Hi Lonnie, It really depends on the price of the house.  I am closing Monday on a house that sold for $84000.  I am the buyer's agent.  I put in so much work for the buyer that I feel exhausted.  The 3% co-op commission will be split with my broker as well as paying other fees and expenses.  At 1.5%, I could not have worked with this buyer.

Lonnie,

Your post raises a few questions for me.  For the moment I'll ask just one. 

How much are you offering on the co -op for the buyers agent? I am always open to new business models but I'm curious how you structure the commission so that there is something there for you.

Thanks

In this market, we hold listings longer than ever!  We work harder than ever and close fewer than before.....I can't imagine charging less for doing more work!  What would I have to cut out to make the numbers work?  Paying the selling agent less of a split will turn the sellers home into one brokers avoid! 

There are all kinds of plans out there, sellers can find all kinds of fees... but it comes down to who can get the job done, and in my market we need EVERY marketing tool we have to hopefully get to a closing!

Lonnie,

Your post is well taking as far as 'am concern. In my market most agents see $$$ signs,. If one list less than 3% it will not be shown. I do show lees commissions properties because that what my buyer want to see.

I went to a listing presentation yesterday that the seller $$ is so tight that the only way to get the transaction done was to reduce commission at 4%, I took the listing offer 3% to the selling agent. and my company get 1%. Moreover, the seller want to move closer to her job so she agreed for me to be her buyer agent. Which benefit her and myself.

I have practice the above scenerio several times in the past during the boom years. It work's if you know what you're doing. Moreover, I will take $1 versus $0 any day.

Thanks for letting me share my two cents with the Rainer's

Seems to me that any broker is free to charge what they wish.  If the public won't pay a price, the broker will reduce their fee or lose the business.

Do we want Dodd determining the cost of real estate brokerage?  What other prices should he dectate? 

If a person can't compete, they won't survive.

I belive it's called capitalism. 

Knowing Dodd, he'd want everyone to pay market rates for real estate commissions except that he would want a "preferred rate" for himself.  Just as he got a "preferred interest rate" from Countrywide for his mortgages.