Commission Splits

Hi Kelly  It depends, alot of short sales only pay a coop of 2.5 in Denver where normal sales are 2.8 to 3.0.  Sometimes we raise it to 3.3 percent the last month of a listing and hope it will pick up showings.  Something is better then nothing.

Kelly - While I am not a Realtor/agent showing or listing property, I have heard that many Realtors/agents will show whatever homes fit their clients criteria regardless of commission.  However, I have also heard that if there are a lot of properties on their list of properties to show, the discount broker properties do get relegated to the bottom of the list.

Long story short, I'd show both but would hope like heck they picked the one with 3%.

Who do you think works harder for the sale?

Whatever side I am representing! :)

The discussion regarding the split is between the seller and his/her agent. This is not a choice... the listing agreement states it is the seller's choice. The agent needs to explain to the seller the possible effects of higher splits garnering more interest. 

Even if an agent is working the independent contractor angle, they still signed on the dotted line with the company they contracted with. If the agent doesn't like the company policy of taking the lions share of the commission, they need to find a company more in tune with their own philosophy of what is fair or not.

The identical condo situation is a simple matter of integrity for me. I signed on to find my buyer the best deal and I will show every listing in their price range regardless of the commission. My buyer's will always know that I work for them and not for my own wallet.

I tell sellers this all the time. Most Buyers agents will do whats best for their customer and not even look at the commission.........BUT.......there are a handful of agents that will push for your 3% condo over the 2% in the building since they make more off same condo (all other factors being equal).

My statement to the sellers is "It shouldn't work this way but it does" Of course I also subscribe to a 50-50 split model.....even on shorts. Just my 2 cents

Not every agent does 50/50, some listing agents keep more, some offer more to a selling agent. 

Some sneaky agents charge 1-0.5 % for listing but they do everything possible to double end.