I would like to hear from other parts of the country. In the Milwaukee market a 6.0% commission is split 3.6% for the Listing Agent and 2.4% for the Selling Agent. I want to find out if other markets in the US use the same ratio on a commission split.
A few brokers insist the split is fair, because they spend money on advertising. But come on now, no one uses print ads anymore. So why not be fair about it and do a 50/50 split?
Most of the brokers working with forecloses use the 3.6/2.4 split. All they do is take one picture, copy and paste a description and put it on MLS. How do they justify keeping 60% and paying out 40% to the Selling Agent who has to go through all the headaches of taking the buyer around to 40 to 60 properties before they make a decision, find a lender who will work with a foreclosure, write the offer, follow up on contingencies, and all the other steps involved?
I want to find out if the Milwaukee market is following the trend of the US market or following their own path.
theJEMgroup.com (DRE #01373117) - Palmdale, CA
REO Broker, Palmdale, Lancaster, Rosamond, CA
What's fair? The listing broker is offering to compensate you out of his negotiated commission. If you want a guaranteed pay check then you need contract with the buyer to pay you what you want for the job.
Why is it fair that a buyer's agent feels that they are entitled to any more of the listing broker's pay check than the listing broker is willing to offer?
Quite often we offer more than half of our commission to the buyer's agent but, on the other hand, we've gone the other way too. Sometimes we'll offer a flat dollar amount and not a percentage. It all depends on the situation and the property.
The key here is that it is our commission and we can offer a buyer's agent what we feel may be necessary to get the property sold unless the seller directs us to offer a specific split.
Jun 17, 2010 10:35 AM
Crossroads Real Estate LLC - Howards Grove, WI
Dennis Herman
Well put James. I wonder how many agents explain this to the seller. The commission they offer has a bearing on how quickly a property will sell.
Jun 17, 2010 10:49 AM
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Dennis Herman
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