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Agent Commissions

By Toby Barnett

Real Estate Agent with KW North Sound 103527

April 09, 2007 08:35 AM

The other day, while at a public meeting, I briefly overheard a friend's conversation with his friend. Incidentally it was real estate related so it immediately caught my attention and not trying to be rude I just it came "I am listing it myself because I don't want to pay those damn real estate commissions".

The person's tone made me believe she despised everything a real estate professional does for a living and is just the scum of the Earth. At first I was a little angry and then hurt but as sometime has passed since hearing that comment I am contemplative on the real estate agent's commission, read more.

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Dee Neal

Palmer House Properties - Alpharetta, GA

Atlanta Area Real Estate

good post. let me tell you, i honestly think that we dont get paid enough for all that we do. i charged full commission for a house that sold for $220,000..with all the running around and stress i had with that transaction, i honestly don't think the pay was enough. now the sellers are nice people. they were not the issue but i guess the buyer's agent knows that it is a buyer's market and intended to have his buyer take full advantage of it. this, combined with the broker split, made me feel really underpaid,lol my seller even asked why am i doing all the work and the buyer's agent is still getting paid...i had no answer for him...

Apr 09, 2007 09:02 AM

Marchel Peterson

Results Realty - Spring, TX

Spring TX Real Estate E-Pro

I think there are a whole lot of people out there who don't realize that we don't get paid unless a transaction happens. It is not uncommon for me to work with someone for a very long time before a transaction does happen and sometimes doesn't happen even then. I don't like the image we get of being a used car sales man though.

Apr 09, 2007 09:20 AM

Gerald Mori

Coldwell Banker 2M Realty - Whitby, ON

Realtor - Coldwell Banker, Oshawa

Toby, I'm in a situation now where I have a listing that is getting lots of attention (showings) but has yet to yield a single offer. Initially the price was a little because the seller wanted to test the market. Now the price is OK but the home doesn't show well. The seller is getting frustrated and I think they may feel I'm not doing enough to sell the home. I've explained that there is a lot of inventory in the area and that other comparably prices homes show much better.

The seller insists that their home having too much furniture in it is not the problem. This despite feedback from several agents who have shown the place. The owner doesn't want to entertain the idea of bringing in a stager at all. I'm afraid it's quickly coming to the point where I may have to cut this one loose.

I'm frustrated because people hire you to essentially market their home for them and then when you make suggestions based on your experience and the experience of others they are reluctant to follow those suggestions. Then when the house doesn't sell it's because real estate agents are scum and don't know what they're doing. It's like going to the doctor to find out how to lose weight, not following the routine of diet and exercise he puts you on and then saying that he's a bad doctor because you haven't lost any weight.

I'm not sure what else I can do on this one. Obviously I'd like to get the home sold so everyone involved can move on but this one is proving to be a challenge.

Jerry

Apr 09, 2007 10:13 AM

Toby Barnett

KW North Sound - Marysville, WA

Toby Barnett

dee neal, I completely agree, most people don't know what an agent has to deal with in a transaction. There is so much behind the scene like driving around. Most clients don't think about the price of gas when they ask to go out and look at homes all weekend.

Marchal, I know exaclty what your talking about. We've had people call us and use us for their transaction, request tons of upfront marketing costs up front, negotiate transactions and then fire us because we didn't do enough. It blows me away that people forget that we are professionals working our butts off and incurring costs with the "hopes" of closing a deal.

Gerald, that is quite a predicament and the sad thing that is so common. Just recently we had a person request a CMA, didn't like the professional recommendation, hire us, list at their own price, then complain that offers weren't coming in and then fire us putting the blame on us. It goes past being insenstive and reasonable where people no matter how much they ask for advice never really listen to it especially when it comes from a experience agent. For the most part I would love to chew them out and tell them "its my way or the highway" but I just can't do it and agents shouldn't do it because it would effect the rest of our business. I hope it works out for you my friend it goes smoothly here on out.

Apr 09, 2007 10:45 AM

Gerald Mori

Coldwell Banker 2M Realty - Whitby, ON

Realtor - Coldwell Banker, Oshawa

Toby, I hear you loud and clear. Everybody thinks they're living in the Taj Mahal it seems.

It drives me insane when a place obviously isn't showing well. The sellers invariably ask me to get feedback from agents who have shown the home and then are offended when I pass the feedback along to them, usually because it's less than flattering. People really need to divest themselves emotionally from their homes when they list them. I realize that's easier said than done but if people would step into the buyer's shoes and make a concerted effort to look at their own home objectively they would be hard pressed to *not* see what is keeping it from selling.

I know I'm preaching to the choir here but at least it's allowing me to get it out of my system. I am this close to just letting this listing go. I offered to do it at a reduced commission since they are going to buy through me as well so I'll be losing two deals but honestly, at this point I think I may just have to cut and run.

Thanks for your comments.

Jerry

Apr 09, 2007 12:33 PM

David Smith

Fillmore Realty - Brooklyn, NY

Jerry, you said:

"It's like going to the doctor to find out how to lose weight, not following the routine of diet and exercise he puts you on and then saying that he's a bad doctor because you haven't lost any weight."

That's a powerful analogy. I wonder what the sellers would say if presented with that statement (or something more digestable if they aren't the type you can be that frank with). I wonder also what their sense of why the home isn't sellign when clearly, there is traffic. You don't control a buyer's behavior, but is there something the seller has control of that they think they can do to help the home sell?

Just food for thought. Good luck to ya,. As you can see, many of us here can relate.

Apr 09, 2007 12:41 PM

David Smith

Fillmore Realty - Brooklyn, NY

Toby,

Great topic/subject. Sadly, an all too common sentiment. Instead of professional association awareness, I wonder if NAR would take on the issue of helping consumers to be better aware of all their members do with no guarantee of pay?

Apr 09, 2007 12:43 PM

Toby Barnett

KW North Sound - Marysville, WA

Toby Barnett

Jerry, taj mahal...LMAO...that is a great anology. one of my all time favorites is sellers wanting to sell 5f0k more than their home is worth then low ball 40K on new construction.

Davide, thanks for chiming in and glad you liked the topic...soon I'll take a more opinionated approach on it and really have at the topic. I don't NAR would ever back the issue since it is so controversial and they might fear the name of REALTOR would be further tarnished.

Apr 09, 2007 02:02 PM