Will Realtors lower their commission?

By
Real Estate Agent with Keller Williams Jacksonville Realty

Will you lower you commission?.....that's a qustion we hear all the time.

Actually, what the sellers really want to know is....what is my bottom line? This is what I say,

" I just worry that if another agent is so willing to lower their complete commission, and give their own money away so quickly....how will they react when they are negotiating an offer with YOUR money? I am a great negotiator and will work hard for getting you the most money.

 I just got another one of my listings  under contract. Sales price was $250K and we lowered it to 245K and the first offer we received was 220K. Seller wanted to counter at 236, which he had told  me in the beginning was his bottom line ...However I strongly suggested 242K because I had the comps to suport the higher price, and knew the inventory out there, that they had to choose from. He agreed......

and We ended up with an accepted contract price of 240K with no closing costs paid. I more than paid for my commission, by helping the seller get MORE money in his pocket. So,  it's really not about the commission as much as it is the NET in your pocket and how successful the right Realtor is, in negotiating in your best behalf.
 
NOT all agents are alike!  If he had a Realtor, like the one that was so willing to lower their commission at the beginning, they would have let him counter at his lower bottom line price, to make sure the deal got done.....not trying very hard to get the sellers the highest price!!

Look at the referrals I'm going to get, with the seller knowing how much I fought for him, and saved him $4,000. He was SO excited!!!

Jeannette Kohlhaas - Keller Williams Realty Jac 904-735-8666

"A Straight Shot to a Successful Closing!"

www.buyandsellGOLFhomes.com

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Comments (8)

Nor Yeretsian
Envoy Capitol Realty Inc. - Toronto, ON
Envoy Capitol Realty Inc., Brokerage Toronto

Not all realtors are alike !

Lowering your commission, may be an option - but one of the last options in a negotiation.

As a full service realtor we do not entertain lowering our commission.

Cheers

Nor Yeretsian

Oct 17, 2010 01:47 AM
Dennis Duvernay Broker/Owner
Hillview Realty - Northbridge, MA

Every situation is different.....I fight hard to maintain my standard commission but will make exceptions.(especially for past clients who ask)....we all need some flexibility....

Oct 17, 2010 01:59 AM
Eric Kodner
Wayzata Lakes Realty: Eric Kodner Sells Twin Cities Homes - Minnetonka, MN
Wayzata Lakes Realty: Twin Cities, Madeline Island

Negotiating commission is a poor way to accomplish a successful negotiation and a last resort.  It makes no sense that the agent should help subsidize the buyer's purchase.

Oct 17, 2010 01:59 AM
David Jirasek
Jirasek Realty, LLC - Temple, TX
ALC, CCIM

We all want to make as much income as possible, but in many real life situations there are situations that warrant negotiating compensation for work performed. I been underpaid on full commissions, and on others felt like real estate is way too easy to make money. Is there two agents? Will an agent have to meet with a home inspector, surveyor, appraiser, maintenance/repair person? Will the agent have to go to the courthouse and research mineral rights, or locate missing or deceased family members? or, is it a cash deal with nothing to do but write the contract and show up for closing? or better yet, is it a mail out and the agent doesn't even have to go to closing, or drive to title company because the title company delivers a check to your desk in person! Lots to factor in, in getting compensated for time invested and work done. Treating customers as you would want to be treated turns them into lifelong clients, however I will say working for extreme discounts prevents an agent from making any real money in the longrun.

Oct 17, 2010 04:00 AM
Chris Dugger
Real Estate Marketplace - Louisville KY - Louisville, KY
Louisville REALTOR

Jeannette ~ I would agree that your client was smart to have chosen you. I always tell them that getting the wrong agent will ensure that they pay $0 in commissions...because they won't get the home sold. That said, I'm not sure how you make the connection that an agent who negotiates commission would not provide the same service and would have advised the seller to counter at a higher price. Not all agents are alike...except those that negotiate on commission? Doesn't seem like a fair charge.

Oct 17, 2010 03:03 PM
Margaret C. Taylor
Century 21 New Millennium MD - Mechanicsville, MD
St Marys/Calvert/Charles MD Real Estate Agent

I like your presentation, showing and believing in your worth.  Margaret  C.

Oct 17, 2010 03:21 PM
Jeannette Kohlhaas
Keller Williams Jacksonville Realty - Jacksonville, FL
www.MoveFREEwithMe.com

Thanks for commenting, I think we are all on the same page....we work hard for our Commissions!

David, yes, you're correct, some transactions are very straightforward and others have so many curves, and take so much extra time and erergy.

David, because each transaction is different, sometimes we all do what we need to do, to get the deal done.

Chris, I LOVE your saying "By using the wrong agent, you will ensure paying $0 commissions, because the home won't sell!" ....I wasnt really trying to make a connection.... I was just saying, it's not all about just asking about the commission we charge, or saying I want to hire an agent from a certain brokerage, becaues thet brokerage is good!.

 EVERY agent has their strong points (and weak points). and even every agent within the same brokerage is Different. It's about the Seller hiring the Realtor that they feel comfortable with, knowing their personality and work ethics, and their past performances to get the Home SOLD! ANd making sure that agent REALLY has the Sellers best interest at heart.

Jeannette

Oct 18, 2010 12:38 AM
Sergio DePinto
Royal LePage Maximum Realty.,Brokerage - Greater Toronto Area - Vaughan, ON

Great Post....I hear you, I hear you... I once took an expired, and with in a week of transforming the house decor, and smells.... oh the smells,,,, I present them with $10,000 more then the old list price... they ask... now get this..

" can we do anything with the commission.." I quickly and calmly replied " under the circumstances, if you'dwould like to give us a bonus for doing such a phenomenal job, I'm ok with that..." needless to say, the conversation shifted.

It's true.... I can supply witnesses. My partner at the time... reported me to my manager... who took me out for a big lunch.

Oct 19, 2010 11:43 AM