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Commissions and how they are presented

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Services for Real Estate Pros with Coldwell Banker 5050

I wonder, and think about this a lot with our changing business. Why do I as a listing broker determine the buyer brokers fee. Should I not present to our sellers what I am worth earning, and the buyer broker sign their contract for fees with their buyer. This way when an offer is presented, we as a listing broker will bring the net result to our seller, and what expenses brought the net result to them. It would sure clear the air on Dual Agencey, or at least give the seller a chance to see where all the money is going. Just a thought of A NEW WAY FOR US ALL TO LOOK AT THE NEW YEAR.

 

Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

ooooh.....If I understand you, you want buyers to pay their agents directly? I would disagree with this idea. Although at the end of most deals, the buyers do see my value as a buyer's agent, I doubt many of them would pay up front. The other problem is on my listing side. I don't want to have to meet EVERY potential buyer on all listings...and we can't let buyers wander in by themselves. So....I like the current system.

Dec 20, 2009 01:57 AM
Peggy Chirico
Prudential CT Realty - Manchester, CT
REALTORĀ® 860-748-8900, Hartford & Tolland County Real Estate

I think it is always worthwhile to question why we do things, not just keep with business as usual.  But I'm not sure I see this changing in the near future. No reason not to question though.

Dec 20, 2009 01:58 AM
Geoff ONeill
John L. Scott Medford - Medford, OR

I guess that would be the best way to get the buyers to contact only the listing agent when they find a home they like.  That would be going back to the old way.  In addition, it would be a new way to get everyone to start nickel and diming their buyers agents.

Dec 20, 2009 02:00 AM
Herb Hamilton
RE/MAX Preferred Inc. Realtors - Portland, OR
Real Estate Broker ,CDPE, Downtown Portland

Your concept I understand but the mechanics ae a little hard to understand by reading through your post.

I think that you mean to have the Buyers agent negotiate with the Buyer what fee they will work for. You then want at the time of transaction for the Listing agent to present to the Seller an offer including the Buyer's fee agreement for their agent. You then add the two fee agreements ( listng side and Buyer's side ) to present to the Seller the total amount of compensation they would have to pay.

If that is the case it would be a nightmare as you have just placed You Your Brokerage and your Seller in a position of negotiating a contract that is between the Buyer and their Agent. Lots of legal problems there. In addition you would quite quickly see Buyer's agents asking for unrealistic fees telling there Buyer's that the Seller pays anyway.

If not the case then it would not work anyway. Most Buyers barely have enough funds to close a transaction in the first place. I know of very few people who have the ability to pay Agent's a fee as well as meeting all of the closing costs.

The Listing agent chooses the Buyer's agents compensation after discussing it with the Seller. In that discussion the Seller gets to understand what kinds of costs there are and who would be compensated what for what amount of work. That is why it is done the way it is done.

Dec 20, 2009 02:17 AM