What are your thoughts on 50/50?

I don't know if it is possible, but I'm with a broker that gives us 100% of the commission, we just pay $295 per transaction. I can't imagine paying 40% to my broker, that would hurt.

Wow - interesting. I never considered that. But I think I like 50/50 - I think it all evens out in the end.

Active Rain is certainly interesting  - you see new things every day.

Judy - I structure my listings to always offer at least a 2 1/2 to the buyers side.  If I take a 6% listing I offer a 3% and 2 3/4% on a 5 1/2 commission.  On the other side if I take a 4 1/2% (which is next to never) then I still offer the 2 1/2% to the other side and take the hit on my end.  I understand that the buyers agent has more leg work to do for the buyers but as a listing agent we put our marketing dollars in as well.  Photos, Flyers, Virtual Tours, Open Homes and Caravan all come at an expense as well which is equal to if not more expensive than a tank or two of gas. 

I think this is a fantastic idea!  I am sure that it could be everyone's cash flow if they were to get a bigger cut of the deal.  I think it is common for clients to ask for a discount on  the listing side since it is their money being put up to get the home sold.  I am interested to hear what others think.

By the way, we have a client who is searching Omaha's MLS on our Home Buyers Scouting Report on our site.  we have MLS access in most major markets on our site.

Jess Rankin, Pickering Group

www.pickeringgroup.com

Lender in all 50 States

No matter what the commission is, the buyer's agents for my listings ALWAYS get a minimum of 3% as that's what my market tolerates.  Less than that, good luck getting a buyer through the door.  We cannot tell you how to do your split as that's against RESPA discussing commissions and everyone doing the same thing.  You should do what you feel comfortable with.  I will tell you that all of my listings right now have at least 3.5% to the buyers' agent in order to put the listing above the other thousands on the market.

I used to be licensed in Omaha and I forgot about the uneven split until David Matney brought it up awhile back. 3% is common while it isn't unusual to see 4, 5, 6, 7 and more for the buyer's agents, especially with new construction.  Foreclosures and short sales are variable commissions and remain in the 2-2.5% arena.

 

In our market it is pretty standard to do 50/50 split, I try to always give the buyers side more if I take a low commission which is rare not only because they do leg work, but because I want my listings to compete with the builders commissions and other agents.

Our commission break is 95% with me paying a fee on in house or out of house. My business is 50/50 between buyers and sellers. I like it that way and its great in this market. We however seldom see a 6% commission, its closer to 5%. I have done splits that give the selling agents more. I have also done one where I took more due to circumstances.  

I generally offer 3.5% to the Buyer's agent.  I've had several sellers, recognizing that we have 12,000 available homes, who listed at a higher than standard brokerage fee, and we offered 4.0% to the Buyer's agent.

Everything else being equal, I don't think it can hurt.

It will not overcome a bad price, a home that isn't ready for the market, but otherwise I don't think it can hurt.

If it does lead to a faster sale, my holding costs/marketing costs/ time consumption are decreased, so it helps to offset!

I am telling my sellers to offer as much commission as possible to buyer's agents.  Some are willing to pay 8-10% or big $10,000 bonuses on top of the 3%.

I always will do what I have to do to get the deal done. Generally speaking, In this market I dont take a listing unless the seller agrees to a price that will attract buyers and a commission that will attract  buyers agents. If I negotiate a 6 or 7% commission with my seller, I offer 4% to the buyers agent.  If 5% then the buyers agent gets 3%.  There are of course exceptions (short sales for example) but that's my general practice.

 

Does your MLS actually list what the listing broker is making?  I've never heard of such a thing if it does.  If it doesn't how does the buyer's agent even know what percentage of the commission they are getting?  In my area, the MLS lists only the buyer's commission, and you see what the listing broker made on the HUD the day of closing, and then you go "AHHH, that's why my calls weren't returned promptly, because they were only making such and such amount..." or something like that.  But at no time do the buyer's agents know what the listing agent is making during the transaction unless it's verbally stated for some odd reason.

I agree with you Judy about buyer broker coops.  Right now it probably takes more money to procure and work with a buyer than it does a seller!