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Why is it in Knoxville, TN the listing agent always ask for a 60/40 split?...

By Richard Harbin

Real Estate Agent with Century21 AAIM

March 23, 2009 05:14 AM

The argument goes they pay for the advertising and work so much harder than the Buyer's Agents. BullHockey!

I have probably shown my buyer every home in the price range before we found the right home.

How I overcome this obstacle is I establish my value before we look at our first home. I explain to the buyer about the Knoxvegas split. I tell them we might come into a situation where the listing agent will not split the commission and I lose out. If that happens do you still want to submit contract? I also explain that this now puts the ball in the listing agents court. If he does not want to split, the LISTING agent can explain to their SELLER why they don't have a contract. Most of the time my BUYERS want me to get paid and work with this.

However, if it came down to it and the BUYER really wanted the house, I would submit and place the LISTING agent on my own list. You see as a DUAL agent I also LIST homes and agree to a split. Unless you are on my list!

Also if you have had the house on market for 2 yrs and spent a boatload in advertising there is leeway there also.

However, if you have the home listed for 10 days and I bring a contract, you best be splittin fool!

IE,,,, Just sold a condo on market for 10 days. The listing agent doesn't want to split. I tell him no split no contract. He is still waffling so I say.. "I have shown the house 3 times in 10 days. How many times have you shown it?!"

His response..."Ill send the compensation agreement right over."

I sent contract, closing is April 9th.

Love this business! Adios

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Luke Constantino

Brooklyn/Manhattan Real Estate - Brooklyn, NY

Residential/Commercial Real Estate Brooklyn NY

Hey, hey hay!!! What going on here? Stop crying! You should try the NYC 70/30 split!!!! This is even worse!!!

Oh, I'm a listing broker, sorry. :-P

Mar 23, 2009 05:18 AM

Eric Reid

Renaissance Realty Group of Keller Williams Atlanta Partners - Lawrenceville, GA

ok that is crazy... here it is 50/50 and if the 50 I give is not enough then you are welcome to ask the buyr to pay your full fee and reject the sellers 50 /50 fee

Mar 23, 2009 05:22 AM

Jim Cheney

Saint Francis Property Santa Rosa, CA - Santa Rosa, CA

Rincon Valley Realtor 707.494.1055

In our MLS, if it's not 50/50 then the buyer's agent gets either more or a bonus. I've never heard of the Knoxevegas split. That is crap!!! If a listing has not sold in 2 years, that's the listing agents fault.

Mar 23, 2009 05:23 AM

Also if your basing submitting an offer on if adn how you will get paid ... seems like your putting yourself in front of the clients needs

Mar 23, 2009 05:24 AM

Margaret Mitchell

Coldwell Banker Yorke Realty - York, ME

Seacoast Maine & NH Real Estate

I think this varies by area. In our area, a 60/40 split is common. Agencies that offer a 50-50 split will note that they do so in listing notes on the MLS, provided the Buyer Agency enters into a reciprocal agreement.

I don't know. It seems fair to me because we do make a major investment in advertising the property. I do professional photos, premium web advertising, monthly print advertising and lots of open houses with advertising and refreshment. (They work well for me.)

Even with the 60/40 split, I get pretty excited about picking up a Buyer. All commission is negotiable but I don't object to this split arrangement. Ridiculously low commissions offered by discount agencies, which won't even offer me minimum wage by the time that I am done. is a bigger concern to me than the split arrangement.

I hear your pain. You might want to make this a members only post so clients don't!

Mar 23, 2009 05:43 AM

Richard Iarossi

Coldwell Banker Residential Brokerage - Crofton, MD

Crofton MD Real Estate, Annapolis MD Real Estate

Rich, I'm curious here. Aren't you interfering with the listing agent's contract with their seller? Here in Maryland, the commission split is on the listing agreement and an agent has to get the sellers approval to change it. Rich

Mar 23, 2009 06:05 AM

Richard Harbin

Century21 AAIM - Knoxville, TN

Thanks for your comments everyone! First off to Luke in NYC...DUDE! 70/30 ur bustin my nads ova here!

In response to placing my interest before clients if you'll read I talk about this. Establish my value up front and letting client know of this situation. That gives me ammunition. HOWEVER if my buyer really wants the house I submit upon their sayso.

I do agree alot of work goes into the listing and that it why I always factor in DOM.

And finally, Richard, a couple of good points here. In TN our seller or buyer never sees Compensation Agreement and is not required to sign. If in MD, as a seller, my Realtor hedges on his own commish then it might give me pause about how hard he is fighting for me and my home.

As far as interfering, I don't see how the SELLER's agent not placing his Clients best interest above his own comes on me. Maybe it was my bad upbringing, I was a Pastor's Kid! Look out!

Thanks again and sell baby sell!

Mar 23, 2009 07:04 AM

Why is it in Knoxville, TN the listing agent always ask for a 60/40 split?...

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Richard Harbin

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