"You're going to have to kick in $2,000 of your commission.."

By
Real Estate Agent with HK Lane, Christie's International Affiliate, 760-285-3578 DRE #01329387

Coachella Music Festival RentalsOK..here's the thing.  Realtors are sales people, we all "get" that sometimes it takes doing this or doing that to CLOSE the deal.  I am always willing to work with the other Agent to make a deal happen.  But..there IS  limit!!

I have been working with a couple for several months now, here in the Palm Springs, CA., area.  They specifically wanted a 5 bedroom property to be used as a Vacation Rental.  Due to limitations on minimum days required by many of the HOA's around, I had to keep my head down to find the home.  I did.  I was there the first day it came active, even though the photos were dismal.  I took my buyers over the next day, and we wrote a good CASH offer that day.

As we all know, when the Sellers get an offer quickly, they often think they priced it too low.  Two counters later, and my Buyers were hearing me about price/sf, and maximizing income potential.  We were at our max.

List Agent calls..."We are so close Kim.  The Seller just wants both of us to kick in $2,000 of our commissions, and we can open Escrow tomorrow."  I took a deep breath..

"Absolutely NOT.  Your Seller is low on their Commission split to start (2.5%), and I am paying a referral fee.  If your Seller wants this to open tomorrow, they need to know that my offer is based on facts, and there is NO room left.  I'm bringing them a stellar CASH buyer, quick close, fair market value, and your Sellers out of their monthly expenses.  Please let me know what their decision is."

If a Seller is truly going to turn down an offer (not talking low ball here..Fair Market Value), over a few thousand dollars, they are not ready to SELL.  

List Agent called me within the hour.  "We have a deal.  Open Escrow tomorrow."

Sometimes, when the situation supports it, we MUST set our boundaries.  Part of being a good Sales person!

 

Posted by

 

Kimberley Kelly, RealtorKimberley Kelly,   Land, Ranches or Residential properties in the Palm Springs Valley of California. Follow this link to Meet Kim!

(760) 285-3578

 

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Comments (4)

Brigita McKelvie, Associate Broker
Cindy Stys Equestrian and Country Properties, Ltd. - Lehigh Valley, PA
The Broker with horse sense and no horsing around

Kimberly,

What consumers sometimes don't realize is that we have expenses to pay out of that commission, that not all of it goes into our pockets.  Good for you for standing up for yourself!

Brigita

Jan 08, 2015 11:21 PM
William Piotrowski
Diamond Residential Mortgage Corporation - Naperville, IL

Nice work Kimberley and congrats on the sale!

Jan 08, 2015 11:23 PM
Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA
FrankRubiRealEstate.com

Kimberly, I tell my agents when presented with type of foolishness to have the other agent call me the Broker. Good for you to have cut this one off from the get go. Just like the seller we all have bills and kids to feed. Come on cut your commission. 

Jan 08, 2015 11:25 PM
Michael O'Donnell
Berkshire Hathaway Home Services Arizona Properties - Scottsdale, AZ
GRI, ePRO, Accessible Homes

Kimberley,

Hoorah! For some reason, the public thinks that real estate sales commissions are just easy money, and that they are easily negotiated away,

Where did they get this silly idea? From the real estate agents who are not sure of their facts, their markets, and their skills.

Professionals earn every cent of their commissions, and refusing to "sweeten the pot" gets you taken more seriously.

Congratulations!

Jan 08, 2015 11:28 PM

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