It's been a long time since this has happened. We are doing our third transaction with this client. We sold them a home, sold that home and they are now in the market for home number three. We have shown them homes and they have selected one--that they really like. We have written a low offer. The seller and buyer are $14K apart. They have asked that the listing agent and we split the commission on a $450K transaction. Total commission on $450K: $13,250. Why would either of us be willing to give up that kind of money? I am speechless. It has been a very long time since anyone has asked for charity. The buyers are two well employed professionals. No kids. No obligations. What the crap?? Who out there has been asked lately to give up part of their fee? It's not often that I am speechless. I am now!
I was just asked for a discount when selling and buying... I guess that's not too uncommon.
It happens all the time. Thank goodness I am a Coldwell Banker agent and they will not allow it.
That's totally crazy, if they can buy a $450,000. home, they can afford commission. Geeze - I went back up to re-read again. The total commission is 3%??? They are getting off easy. Total commission for the most part in SE, FL are 6 - 7% total.
So let me see if I get this. They're writing a low offer. And they want you to, it sounds like, forfeit half of your comission if I'm reading it right. Do they understand you have to share your commission with your franchise, and your broker? Do they work for free? I hope you have a buyer's broker agreement with them.
Oh yes...just happened a couple weeks ago. I listed a property for an investor friend of mine. Because he has bought several homes through me, then allowed me to relist them and sell them for him...my broker agreed to give him a 1% discount on his listings. With the current house I have listed for him, he is selling it to a personal friend of his. I have it listed as an Exclusive Right to Sell. He asked that since he "brought the buyer" if we could only charge him 1/2 the commission. WHAT!!! Lemme get this straight....I did all the advertising.....all the showing......and I'm handling both sides of the transaction althought I am seller's agent.....and he wants me to cut the commission yet again. Absolutely not!!! We are professional with a valuable service. Just remind them of the money and headaches they saved by having you market, show and sell their property with expertise instead of them "flying by the seat of their pants". There are soooo many things that go on behind the scenes of a listing, selling and closing properties. They buyer's and sellers don't always see that stuff. Sometimes I think they think we just take calls all day and drive around touring properties. Geez...
The first people they always come after are the ones helping them. I was talking to one of my realtors this week and he was telling me the same story on one of his listings. A single doctor who has a second home on the market would only lower the price if he cut his commission. I don't think sellers know what kind of money goes into marketing a property! Good luck!
I haven't been asked but I did give up part of my bonus to ensure the deal closed because the buyer was short.
I have had a few clients ask me to reduce my fee for them, and it always seems that when I do, their listing ends up being a lot of trouble and hard to sell. I have promised myself I'll never do it again!
Bonnie, your post is specific enough to enable your clients to recognize themselves. Perhaps making it public was an inadvertent mistake?
Brian L. Sirota, Esq., Broker/Attorney, BriStar Realty, Orange County, California
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