Do You Look At The Commission Rate When You Choose Homes? You are In The WRONG Business

Why can't I ever sell one of those? A 10K bonus? You pulling my leg?

Hi Frank!  You know, unfortunately there are agents out there who do that!  I've sold new construction before and have had buyer's agents complain to me that the builder just wasn't handing out enough commission to warrant their efforts to get the buyers out to see the homes!  My question to them was, "And, WHO exactly is buying the home?  You or are you representing a buyer?"  Needless to say, most of these agents are no longer in the business and I'll be glad when the other ones fall off at the end of the year when the NAR dues are up!

Frank & Jodi -

I real touchy, ethics-laced question here.

To protect myself and our Team, we sign all buyers to an Exclusive Buyers Agency Agreement where the BUYER would compensate us for any Brokerage Fee Shortfall (never call it "COMMISSION!") where the co-op fee is short.

However, we first try to get the shortfall from the SELLER.

We've proably had two dozen such transactions in the last three years since we institued this policy - and have never had a problem or settled for a low-Brokerage Fee co-op.

Is is possible that OTHER agents, over whom you have no control, do not operate as ethichally as we do? 

I think you know the answer to that question.  And we are selling LISTING CLIENTS short if we don't discuss this possible problem with them, in case they want to offer a low co-op to somehow "save money."

Let me know if you would like to discuss the systems we have put in place in greater detail.

DEAN & DEAN'S TEAM CHICAGO

I agree that if an agent's main drive in this business is to get the highest commission possible, they're most likely doing their clients a dis-service. 

It's already hard enough to find the right home for a buyer without throwing my own compensation into the list of requirements.  Now should zero-compensation rear its head, it's time for a discussion with the client.

Most of the time, my clients respond to homes for an automatic email...so I don't even have a chance..I look at the commission too..but I take the good with the bad...it all works out in the end.. :)

Well said!     

When I get a buyers agency agreement signed I put "per mls" in the commission spot.  And, I've picked up several buyers and referrals because another agent would show a listing with a 2% commission.  Personally, it's about the buyer and what the buyer wants and we are bound by law to show our buyers every property that meets their search parameters regardless of how much commission the seller is willing to pay.  I've had agents call me up and leave nasty messages about the 2.5% commission and how they won't show that house because they will only work for 3% or more.  Those agents are doing a disservice to their buyers.  If you make it about the buyer rather than the money you'll make more money!!