Special offer
Paul S. Henderson, REALTOR®, CRS, South Puget Sound Washington Agent/Broker! (Fathom Realty Washington LLC)

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Rainmaker
1,231,853
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

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!!!

Feb 17, 2016 03:35 AM
Rainmaker
1,502,848
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

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.

Feb 17, 2016 09:42 AM
Rainmaker
1,027,602
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

Hahahahaha,,,

Feb 17, 2016 05:49 AM
Rainmaker
1,725,896
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

When you place that question to them, they will always say, "Off Course". In the real world, "Would they?" Hell NO!

Feb 17, 2016 05:32 AM
Ambassador
2,178,433
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Probably not... but that's because they think agents are overpayed and they are underpaid.  LOL

Feb 17, 2016 04:41 AM
Ambassador
3,169,377
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Paul, You trying to make me break a rib laughing so hard?  That's a one way street we're driving on!!

Feb 17, 2016 03:57 AM
Rainmaker
5,772,575
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

That is an excellent question Paul.  And the answer is no.  A

Feb 17, 2016 03:38 AM
Rainmaker
221,286
Richard and Jean Murphy
Harborview Properties - Portland, ME
(207) 712-4796

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.  

Feb 17, 2016 09:21 PM
Ambassador
3,727,873
Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

Well, sure!

Feb 17, 2016 10:56 AM
Rainmaker
1,513,143
Raymond E. Camp
Ontario, NY

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.

Feb 17, 2016 06:41 AM
Rainmaker
3,071,489
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

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....

Feb 17, 2016 06:02 AM
Rainmaker
637,434
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

Chances are, I would not be doing business with them to start with. In any event, I would be very careful if I did.

Feb 17, 2016 05:38 AM
Rainmaker
634,482
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

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. 

Feb 17, 2016 05:02 AM
Rainmaker
628,614
Buzz Mackintosh
Mackintosh REALTORS - Frederick, MD
“Experience, reliable, leadership”

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.

Feb 17, 2016 04:13 AM
Rainmaker
4,881,912
Richard Weeks
Dallas, TX
REALTOR®, Broker

No way.

Feb 17, 2016 04:07 AM
Rainer
183,407
Judith Sinnard
SMARTePLANS; Houston, Texas - Houston, TX
The SMARTePLAN Lady

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.

Feb 21, 2016 07:38 AM
Rainmaker
2,182,502
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Other side of the coin -  If they do give you a discount at their place of business , would we ?

Feb 19, 2016 10:41 PM
Rainmaker
1,767,597
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

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. 

Feb 19, 2016 12:22 AM
Rainmaker
1,196,912
Peter Mohylsky, Beach Expert
PMI. Destin - Miramar Beach, FL
Call me at 850-517-7098

I stand hard on commissions. It helps me sell their mproperty.

Feb 18, 2016 06:05 PM
Rainmaker
979,496
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Paul - Probably not.

Feb 18, 2016 03:20 PM
Rainmaker
183,505
James (Jim) Lawson, DBA
DomainRealty.com LLC - Bonita Springs, FL
Broker Associate, RSPS, BPOR, HI & PE

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  

Feb 18, 2016 12:51 PM
Rainer
223,831
LUXURYSOCALREALTY COMPASS La Jolla
Compass - La Jolla, CA
San Diego Partner - The Private Client Network

great question Paul I highly doubt it

Feb 18, 2016 11:19 AM
Rainmaker
140,768
Joan Dickie
Keller Williams Premier Realty - La Crosse, WI
Keller Williams Premier Realty

Oh, hale, no!

Feb 18, 2016 02:03 AM
Rainmaker
508,387
Jerry Murphy, CRS, SRES
Long Realty West Valley - Anthem, AZ
Anthem, Phoenix, and Scottsdale AZ Real Estate

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.

Feb 18, 2016 01:32 AM
Rainmaker
1,239,801
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

It is a one way street. 

Feb 18, 2016 12:36 AM
Rainmaker
1,466,207
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

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.

Feb 17, 2016 11:10 PM
Rainmaker
855,468
Mark Don McInnes, Sandpoint-Idaho
Sandpoint Realty LLC - Sandpoint, ID
North Idaho Real Estate - 208-255.6227

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

Feb 17, 2016 10:17 PM
Rainmaker
815,995
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

Probably not but it might be worth asking!

Feb 17, 2016 10:11 PM
Rainer
98,823
Becca Rasmussen
HomeSmart Cherry Creek - Highlands Ranch, CO

A lot of people subscribe to the "if you don't ask, you'll never know" policy. 

Feb 17, 2016 10:07 PM
Rainer
428,833
Chris Lima
Turtle Reef Realty - Port St Lucie, FL
Local or Global-Allow me to open doors for you.

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. 

Feb 17, 2016 10:07 PM
Rainmaker
977,386
Brigita McKelvie, Associate Broker
Cindy Stys Equestrian and Country Properties, Ltd. - Lehigh Valley, PA
The Broker with horse sense and no horsing around

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.  

Feb 17, 2016 09:07 PM
Rainmaker
639,495
David Jirasek
Jirasek Realty, LLC - Temple, TX
ALC, CCIM

It depends on a number of factors in the given situation.

Feb 17, 2016 08:59 PM
Rainer
273,237
Richard Robibero, e-Pro, ABR, SRS
Panorama R.E. Limited - Toronto, ON
Selling Your Home as if it were My Own!

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?

Feb 17, 2016 08:57 PM
Rainmaker
5,215,488
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

I like Roger Mucci's comment!

Feb 17, 2016 08:56 PM
Rainer
427,147
J.R. Schloemer
Kentucky Select Properties - Louisville, KY

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. 

Feb 17, 2016 08:54 PM
Rainmaker
115,432
Jeanne Feenick
NextHome Premier - Basking Ridge, NJ
The Agent you choose REALLY does make a difference

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....

Feb 17, 2016 08:53 PM
Rainmaker
516,337
Brenda J. Andrew
ULTIMA REAL ESTATE - Willis, TX
Professional Realtor in Conroe/Willis, TX

Probably not.  This looks like a great question to have in the listing package.

Feb 17, 2016 08:19 PM
Rainmaker
4,571,456
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

You never know unless you ask.  

Feb 17, 2016 06:02 PM
Rainmaker
2,538,633
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Paul. They probably would, but since I am restricted from cutting my fee, it really doesn't matter.

Feb 17, 2016 05:23 PM
Rainmaker
2,759,812
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

 Most likely not. Most folks feel that real estate agents make a ton of money.

Feb 17, 2016 05:23 PM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Paul S. Henderson, REALTOR®, Broker, Tacoma Washington people wear different glasses when they want to see the world...

Feb 17, 2016 02:50 PM
Rainmaker
3,986,258
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Of course not

Feb 17, 2016 01:09 PM
Ambassador
3,854,786
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

I don't deal with people who want me to cut my commission.

Feb 17, 2016 01:04 PM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Maybe. I rarely get asked to cut my commission so I don't know for sure.

Feb 17, 2016 12:53 PM
Ambassador
6,392,889
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

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.

Feb 17, 2016 11:19 AM
Ambassador
2,160,948
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

I doubt it! 

Feb 17, 2016 08:59 AM
Rainmaker
2,443,250
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

Not if they owned the company.

Feb 17, 2016 08:49 AM
Rainmaker
5,005,333
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Love the questions and I feel strongly the answer would be no!!

Feb 17, 2016 08:29 AM
Rainer
150,416
Michael Thacker - Re/Max Real Estate Center - Louisville
Re/Max Real Estate Center - The Thacker Group - Louisville, KY
Your best friend who just happens to be a Realtor

No.

Feb 17, 2016 07:56 AM
Ambassador
5,048,708
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

When pigs fly

Feb 17, 2016 07:36 AM
Rainmaker
1,052,056
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Consumers have been misled into literally translating "commissions aren't fixed" to "i can stick my hand in your pocket".

Feb 17, 2016 07:30 AM
Rainmaker
400,356
Jill Murty, Realtor - Orange County, CA
Movoto - Laguna Niguel, CA

No, of course not.  Those people like to live by a strict double standard. 

Feb 17, 2016 07:20 AM
Rainmaker
1,712,676
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

It should be quid pro quo.

Feb 17, 2016 06:06 AM
Rainmaker
911,228
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

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.

Feb 17, 2016 05:30 AM
Rainmaker
655,840
Jeffrey Jones
AZ Home Seekers - San Tan Valley, AZ
AZ Home Seekers, azhomeseekers.com

I reduce me fee for my lenders personal family purchases and he discounts our personal loans.

Feb 17, 2016 04:37 AM
Rainmaker
5,104,806
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Do you even need to ask, Paul? Of course, not!

Feb 17, 2016 04:29 AM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

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.

Feb 17, 2016 03:58 AM
Rainmaker
450,126
Dana Hollish Hill
Hollish Hill Group, JPAR Stellar Living - Bethesda, MD
REALTOR * Broker * Coach

Ha! Great question. I'll have to try that next time someone asks. Sadly the last time I was asked, was by another agent. 

Feb 29, 2016 12:46 PM
Rainmaker
466,553
Katina Hargrove 352-551-0308
Stake Your Land Realty, Inc. - Eustis, FL
Broker/Owner, SFR®, e-PRO®, GRI, AHWD, REALTOR®

How dare me.....

Feb 23, 2016 09:34 PM
Rainmaker
20,954
Jeri Creson
Jeri Creson, Realtor - Covington, LA
Dually Licensed Broker in Louisiana & California

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 - 

Feb 23, 2016 08:45 AM
Rainer
392,768
Anna Hatridge
R Gilliam Real Estate LLC - Farmington, MO
Missouri Realtor with R Gilliam Real Estate LLC

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.

Feb 21, 2016 02:43 PM
Rainmaker
617,935
David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

Paul,
I make it a point to demonstrate value and then talk about money. So far, never a request to lower commission.

Feb 18, 2016 04:17 AM
Rainmaker
713,282
Sharon Kowitz
CRS-SRES-ABR-GRI-E-Pro-CREN ~ COMPASS RE - Cary, NC
Cary, NC Relocation Specialist ~ Buying or Selling

Great question! More than likely no!

Feb 17, 2016 11:46 AM
Rainmaker
763,783
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

Maybe not the same people but we all try to negotiate when the opportunity presents itself.

Feb 17, 2016 06:53 AM