1,231,853
Lol, would you ask your heart surgeon to reduce his fee? Or your attorney who is representing you in DUI case?
However, as real estate agents we are often asked to reduce our fee. No way!!!
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Anna Hatridge
Farmington, MO
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Brigita McKelvie, Asso...
Lehigh Valley, PA
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Nina Hollander, Broker
Charlotte, NC
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Paul S. Henderson, REA...
Tacoma, WA
1,502,848
When this topic comes up, I have a similar question: "Would you be willing to take a 17-34% pay cut at your work and then split the remaining amount 50/50 with someone else?" (On a 6 percent commission, a 1% drop to a 5% commission is 17%). I also like to take a dollar out and start folding it in half over and over again to show the various expenses. By the end they realize that out of say a $10,000 commission, we may only see less than a quarter of that.
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Anna Hatridge
Farmington, MO
-
Brigita McKelvie, Asso...
Lehigh Valley, PA
-
Althea Kippes, Esq.
San Francisco, CA
1,027,602
Hahahahaha,,,
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Anna Hatridge
Farmington, MO
-
Candice A. Donofrio
Fort Mohave, AZ
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Paul S. Henderson, REA...
Tacoma, WA
1,725,896
When you place that question to them, they will always say, "Off Course". In the real world, "Would they?" Hell NO!
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Anna Hatridge
Farmington, MO
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Brigita McKelvie, Asso...
Lehigh Valley, PA
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Candice A. Donofrio
Fort Mohave, AZ
2,178,433
Probably not... but that's because they think agents are overpayed and they are underpaid. LOL
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Anna Hatridge
Farmington, MO
-
Brigita McKelvie, Asso...
Lehigh Valley, PA
-
Paul S. Henderson, REA...
Tacoma, WA
3,169,377
Paul, You trying to make me break a rib laughing so hard? That's a one way street we're driving on!!
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Anna Hatridge
Farmington, MO
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Paul S. Henderson, REA...
Tacoma, WA
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Nina Hollander, Broker
Charlotte, NC
5,772,575
That is an excellent question Paul. And the answer is no. A
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Anna Hatridge
Farmington, MO
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Paul S. Henderson, REA...
Tacoma, WA
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Nina Hollander, Broker
Charlotte, NC
221,286
Wow, lots of answers and all centered around the initial negotiations between a seller and a listing agent. The commission is not "the commission" until it has been fully negotiated. Once done, there should be no further negotiations.
Because commissions cannot be "fixed" in our industry, it comes down to what you, the listing agent/agency, decide to offer. If your bottom line is say 6% and the seller will pay 4%, you have to decide if it is worth it to agree.
Now to the way I understood the question. Once the listing agreement has been signed, that is the end of that issue (in my opinion). We have had sellers say, "if I am taking $10,000 less for my $500,000 home, then you should reduce your commission by $5,000". Well, we say, $10,000 is 2% of your sale price. At a hypothetical 5% commission ($25,000), $5,000 is 20% of the commission. So, we ask, would you accept 20% less for your home? Probably not.
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Anna Hatridge
Farmington, MO
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Margaret Goss
Winnetka, IL
3,727,873
Well, sure!
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Anna Hatridge
Farmington, MO
-
Paul S. Henderson, REA...
Tacoma, WA
1,513,143
Just recently went through this with a seller; the other company was doing less for less.
After the client contacted them they found out with the extra's and fees they would pay more I got the listing.
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Anna Hatridge
Farmington, MO
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Becca Rasmussen
Highlands Ranch, CO
3,071,489
Counterpoint. If you have looked at an "Explanation of Benefits" from your medical insurance company, the medical provider often accepts a significant discount in their fee (allowable amount) as a result of accepting your medical insurance...
I'm just sayin....
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Anna Hatridge
Farmington, MO
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Tony and Suzanne Marri...
Scottsdale, AZ
637,434
Chances are, I would not be doing business with them to start with. In any event, I would be very careful if I did.
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Anna Hatridge
Farmington, MO
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Margaret Rome Baltimor...
Pikesville, MD
634,482
Love this question, Paul S. Henderson, REALTOR®, Broker, Tacoma Washington! I've only been asked to reduce my commission once and it was an investor-buyer bringing me 6+ transactions. Under those circumstances it was reasonable.
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Jeri Creson
Covington, LA
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Anna Hatridge
Farmington, MO
628,614
Most I would say absolutely NOT! However most agents don't know how to explain how the brokerage fee is split. By the time I demonstrate to a homeowner; a relocation or third party buyer agent can have to pay a referral fee sometimes up to 48% and they are going to potentially loose a golden Buyer, most of the time a smart seller will change their tune.
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Anna Hatridge
Farmington, MO
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Nina Hollander, Broker
Charlotte, NC
4,881,912
No way.
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Anna Hatridge
Farmington, MO
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Nina Hollander, Broker
Charlotte, NC
183,407
Ask your vendors (if they will tell you). How many of you ask/demand/expect/require a discount from your vendors? Real estate agents are notorious for expecting a discount right out of the blue .. without having a relationship or history with you. Swiftly followed up by veiled threats along the lines that they are a top producer ... with X amount of years in the business and they can make or break you. Guys, the door swings both ways ... never, never, never would I say some of the things that agents have said to me.
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Anna Hatridge
Farmington, MO
2,182,502
Other side of the coin - If they do give you a discount at their place of business , would we ?
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Anna Hatridge
Farmington, MO
1,767,597
I'm sitting here thinking about who would cut their own income in exchange for you cutting yours. Perhaps someone whose primary investment in whatever they did for you was their time. Your web developer, a graphic artist, or perhaps even your copywriter.
But if you just came to them with nothing more than a wish to pay less - I'd say hardly anyone would agree.
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Anna Hatridge
Farmington, MO
1,196,912
I stand hard on commissions. It helps me sell their mproperty.
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Anna Hatridge
Farmington, MO
979,496
183,505
Well said colleagues. Lots of good comebacks!
The difficulty is that the average seller has no idea about the time, effort, expenses and risks involved in closing escrow. They simply look at the commission, divide by an hourly rate they consider quite generous and say to themselves no way is the agent putting that much time in on my transaction. So they often ask for a hefty discount.
At this point I pull out my AR blog post, WHAT'S EATING UP THE COMMISSIONS AND WHAT CAN BE DONE ABOUT IT? and show them the upper part with all the numbers. It pretty much shuts them up and we move on to the next topic
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Anna Hatridge
Farmington, MO
223,831
140,768
508,387
I find that these same people who ask us to reduce our commissions are the same sellers who want to price THEIR homes above market but then want to make low ball offers on OTHER PEOPLE'S homes when they are the purchasers.
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Anna Hatridge
Farmington, MO
1,239,801
1,466,207
Paul S. Henderson, REALTOR®, Broker, Tacoma Washington No, I don't believe they would give you the same break. Cutting a fee by 1% doesn't sound like very much until you work out the numbers.
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Anna Hatridge
Farmington, MO
855,468
Excellent question here. I have always found it funny that a seller after talking about how many buyers are trying to low ball their property, and then will turn to the same buyer attitude the moment THEIR property is sold. I have never figured out if they really do not realize it or really don't care. Mark
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Anna Hatridge
Farmington, MO
815,995
Probably not but it might be worth asking!
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Anna Hatridge
Farmington, MO
98,823
A lot of people subscribe to the "if you don't ask, you'll never know" policy.
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Anna Hatridge
Farmington, MO
428,833
In most cases the answer would be absolutely not. Most people don't realize the amount of WORK that we do. When faced with this question, it is imperative that we know our value and that we are able to help the consumer see that value. The reason that they don't ask their cardiologist for a discount is because they see the value.
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Anna Hatridge
Farmington, MO
977,386
When I asked this question of prospective listing clients, most say NO. There have been a couple that said "If I want to keep my job, YES." Needless to say, I walked away from these listings.
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Anna Hatridge
Farmington, MO
639,495
It depends on a number of factors in the given situation.
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Anna Hatridge
Farmington, MO
273,237
Here's the thing. Because it is an open market place people are entitled to ask for this. In response you can take the listing and not do as much.
I negotiate new cars, appliances, home prices, etc.
The question is. Do you relent?
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Anna Hatridge
Farmington, MO
5,215,488
427,147
So many options to this answer. In general the answer is, No. The difficulty comes to light sure to the fact the are so many competitors willing to do anything to get business and receive a check. I have really been cent over a barrel on commissions before, at no fault of my own. Luckily, my broker does not negotiate or fees percentage.
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Anna Hatridge
Farmington, MO
115,432
Very good point - I have pushed back when challenged on commission - why not? - if it is all about working with a bargain shop then the listing will not be mine....
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Anna Hatridge
Farmington, MO
516,337
Probably not. This looks like a great question to have in the listing package.
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Anna Hatridge
Farmington, MO
4,571,456
2,538,633
Good morning Paul. They probably would, but since I am restricted from cutting my fee, it really doesn't matter.
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Anna Hatridge
Farmington, MO
2,759,812
Most likely not. Most folks feel that real estate agents make a ton of money.
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Anna Hatridge
Farmington, MO
4,319,419
Paul S. Henderson, REALTOR®, Broker, Tacoma Washington people wear different glasses when they want to see the world...
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Anna Hatridge
Farmington, MO
3,986,258
3,854,786
I don't deal with people who want me to cut my commission.
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Anna Hatridge
Farmington, MO
3,988,007
Maybe. I rarely get asked to cut my commission so I don't know for sure.
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Anna Hatridge
Farmington, MO
6,392,889
Keep in mind those people could be testing our negotiating skills and really do not want the discount , just want to know if you are any good at your job.
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Anna Hatridge
Farmington, MO
2,160,948
2,443,250
5,005,333
Love the questions and I feel strongly the answer would be no!!
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Anna Hatridge
Farmington, MO
150,416
5,048,708
1,052,056
Consumers have been misled into literally translating "commissions aren't fixed" to "i can stick my hand in your pocket".
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Anna Hatridge
Farmington, MO
400,356
No, of course not. Those people like to live by a strict double standard.
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Anna Hatridge
Farmington, MO
1,712,676
911,228
No. it would never cross their mind. I would never think to hire someone to do a job for me, then ask them if they would work for 30% less or give me a rebate.
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Anna Hatridge
Farmington, MO
655,840
I reduce me fee for my lenders personal family purchases and he discounts our personal loans.
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Anna Hatridge
Farmington, MO
5,104,806
Do you even need to ask, Paul? Of course, not!
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Anna Hatridge
Farmington, MO
921,504
That depends entirely on the need of those 'same people' reach some goal.
Just like those 'same people' I am the only one with the authority to make a compensation adjust or buy a reduced price product.
Times are changing. Now may be a good time to bring new understanding to the existing compensation structure. If the real questions of the consumer are being addressed, their real pain resolved, cutting is an easy issue to make dissappear.
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Anna Hatridge
Farmington, MO
450,126
Ha! Great question. I'll have to try that next time someone asks. Sadly the last time I was asked, was by another agent.
466,553
20,954
You can always respond, "ABSOLUTELY"!
It's gonna take quite an effort, not to mention a whole lot of time and money to advertise, promote, negotiate with multiple people - then walk through the whole process as many times as necessary to close escrow on your home - So say, you reduce the price...say...20% below fair market value - which will make my job quite a bit easier - and I'll be happy to reduce my commission by 20%. Do we have a deal?
I know that's a flip - tongue in cheek answer, and it's meant to be humorous - but seriously - God love em' they just don't understand what it takes to do this business right. If they did - they'd be happy to pay our fee. I think it comes down to - You want both me, and the buyer's agent motivated to do everything we can to get you absolute top dollar...this is what it's gonna take. Can you find an agent for less? Yes. Will big mistakes in marketing and attention to detail cost you far more than my commission in the end? Absolutely. That's why OJ hired Johnny Cochran and not 1-800- Isu-4less. The choice is yours -
392,768
If I understand your question, would those people give me a discount for services provided. Yes, they would and they have. That is why those people don't even ask. They will make the work minimal and I will offer to make it work well with their budget.
617,935
Paul,
I make it a point to demonstrate value and then talk about money. So far, never a request to lower commission.
713,282
763,783
Maybe not the same people but we all try to negotiate when the opportunity presents itself.