"If you can't afford to do your deal, then don't do the deal."
It's not our job to pay for their deal.

I reduce for family. 

Those who aren't family that ask me to reduce my commission get this response:

"Now, if I were to reduce my commission, what would that tell you about my negotiating skills?  How do you think I would do negotiating a great price for you on the sale?  I'm worth every cent of my stated commission when it comes to negotiating."  They get it - most of the time!

A good negotiator should not need to reduce their commission to find a solution to their clients problems.

But if they want to give a gift to a friend then that is ok.

Only when I will be included on title!   I do not reduce my commission, ever.

If it's a repeat customer or one who is both buying and selling at the same time, I do adjust my commission slightly. Otherwise, no.

It really depends on the situation. I will reduce for a repeat customer or one who is doing both buy/sell with me. 

Definitely situation dependent.  

Push comes to shove, deal will fall apart, Buyer or Seller is walking away if the deal doesn't go through, everyone has given their maximum, I don't feel like a sap by helping out, clients are worthy.

Nathan Gesner It is not a good policy to reduce commission, but it depends on the client.

Nathan Gesner - never thought of that! Though some others have contributed to this, I have not - except once where the buyers were a bit off!

A friend repeat customer

I have reduced the commission modestly when the seller is also buying through me.

Each case is different, i will consider all situations and try everything else first, when needed i will. It also depends on the clients attitude

I have to keep the deal from falling apart.  

Whenever it's smarter than having everything fall apart and completely starting all over again (hours-wise ) !!!

I'm never willing to unless everyone in the transaction is willing to. It's that simple!

Hey Nathan,  I am one of those Realtors who is firm but flexible. 

If it is a second or third transaction I defiantly give a discount.  Also 

if we are really close to getting a deal done and everyone in the deal is giving and stretching a bit I will too!  I try to be like the person I want them to be.  Flexible not like a mule who sticks their feet in the ground. 

You don't get anywhere that way. 

But on the other hand I do not discount my commission much on the listing side to begin with either, we work hard for every dollar and if I need to give up commission then the seller needs to give up some type of service or advertising.  Every service we give costs time and money and most every seller understands that when I take the time to review it with them. Then they have a choice, sure I can discount the deal if we do not print postcards, or advertize in the local magazine or maybe no open house or lunch or door prize for agents.   Most of my clients enjoy the choices I give and end up understanding the value in a full service Realtor!  

How about you? When do you give a reduction in commission?

You got to call me Daddy please!

Depends on every situation individually and the price of the property. 

Talk to them about what they do for a living and ask them if they give part of their income in their job if someone asks.  Almost always the answer is no.  Leave it at that.

I have reduced a listing side commission slightly but in most cases even if I agree I discuss the actual cost with the seller and explain why doing this doesn't net them more money.  I'm sure many will get it, but if not pick up a copy of a book Never Split the Differnce and hand it to your client.

I'd never negotiate on professional services...one gets what they pay for in life. We must all figure our worth and back it up.

Hopefully, there will be no need for a reduction.

Upfront is less appealing but to get the deal closed I'll do what I have to. I just got word that a client had a water & sewer bill outstanding  & we could not close until it was paid. It was a short sale situation & the seller was not paying it. I had the seller & buyer on the deal & was not asking the buyer to pay it so I did. Thankfully it's not a position I find myself in often; we usually find & address these items prior to closing. 

Traditional Sales - No

Short Sales - to get the deal closed - sometimes to cover repairs that Seller could literally not afford and without which the Buyer would not or could not close.  Big picture approach to those - not focused on revenue for each specific Short Sale transaction...

Friends and repeat customers know our value and don't need a reduction in commission.

NEVER...  My commission is not up for negotiation or to give away.

Yes, yes and yes

I stopped by thanks for sharing. 

A listing agent on a property my clients were purchasing recently suggested that he and I share a commission reduction.  This type of request is a lazy and costly way to solve a problem.  I don't like that approach.  I said "I'm sorry, I don't do that."

When might I work for a slightly reduced compensation?  Perhaps if a seller were to sell their rental property to the tenant.  In a case like that, the listing would not require professional photos, marketing, etc. 

I reduce for friends and relatives. It just goes with the territory for me. Never give it a second thought!

there are many reasons that would be reasonable to me.... if someone is hanging by their fingernails, I'll always take a significant hit... 

VERY RARELY (I earn my pay) Seems like I am very late to this question and you already have great answers 

I was about to say NEVER and then I realized, hey, wait, there have a been a couple of times. When in a short sale and the bank refused to pay for an item, and it was against the law for the seller to pay for it, and it would not close if it was not paid, and if it didn't close, the seller would lose the home to foreclosure. Under that particular set of circumstances, yes.

I'm strongly opposed to contributing to help close a deal, particularly for parties that are in-contract and in some form of deadlock.  I'd have no problem offering a modest discount to close family or strong repeat customers (not so much friends) or to customers with whom I'm managing more than one transaction for at the same time.

I did a deal for a veteran that came back without legs, had a 2 story home, and they needed to sell.  Did it for costs.  Sure felt good.

Other than family members... I have kicked-in some of my commission only occasionally.

I've never done it when it's requested or demanded... only when it was 'my idea' for a particularly worthy client or very needy circumstances.

Depends on the situation but it seldom happens for me anymore

     I am willing to take an increase in commission when the deal becomes a PITA.

An unseen issue that the buyer or seller really can't handle.  Not one in 5 years

Anytime the price is reduced, so is my commission.  LOL.

Friends or Family may get a discount or at least, feel like they get a discount.

Commissions are negotiable before I take on a client, and always in writing. Sometimes circumstances change and I will reconsider depending on the circumstances. That's why I am an independent broker so I can make these decisions. In the case of a co-broke, I see what it is on the MLS and I expect to get paid that once we are in contract. On two occasions in 10 years I have contributed a little something extra as long as the listing agent was willing to contribute as well, but that is not the norm. 

It is not my practice to do this. If the seller is in severe financial distress I will do my part to help my client.

Too often agents are looked to to reduce their fees with a difficult seller or to make a deal go together.  I always say that the agents in our brokerage are worth their fee - they work very hard and only get paid at closing. However, if it comes down to sellers and buyers at loggerheads and in order to make a sale happen, a cut in commission is required, we do this. Better some commission than no commission.

I rarely do it unless it is to a family member or the only way to make the deal work.

We reduce for our military, police and firefighters as  our way of saying, "Thank You!"

I have made concessions to help past clients ... it is all tied to Good Will and customer loyalty. 

Depends on the agreements that preceded it.

For example, I offer homeowners a level of service selection with corresponding compensation. The lower they go, the less latitude I have, but the more money I make.

If the situation is caused by unreasonable parties, and the OTHER agent agrees to share the pain, thats a solution I can live with the following caveat.

Now, you suggest a reduction in commission, that THAT will NEVER happen.

I will fix something, buy something but not adjust the contractually agreed upon  compensation.

In 18 years, other than when lien holders in the Short-Sale years DID THIS WITHOUT OUR CONSENT, I've never reduced a commission once under contract for a buyer nor a seller.

I offer upfront rebates and some free services (like staging consultations) to my Military clients. I offer a smaller but helpful rebate to my repeat clients. I also offer "points" to those that refer me, so they get some freebies when they eventually work with me myself.

But, other than maybe running out to buy some carbon monoxide detectors or smoke detectors to help with an appraisal or something of that nature where $150.00 at Home Depot ensures $15,000 in my check, I do not reduce my fee once in contract, nor to I pay for repairs that are my sellers' responsibility.

The only time I adjust my commission is if I am doing both ends of the deal, or if it is a repeat client.  Otherwise, I do not deduct my commission.

When an impasse is imminent, I get creative with a lecture and demo

Nathan,

When has your attorney,, dentist, doctor reduced their fees?  A

Nathan Gesner Rule number one: Never take a reduction in your fee. Believe me they will come up with the money.

I do whatever it takes to close the deal even commissionectomy to move on to the next deal

My first answer is always no because I'm not going to be on title. I'm not part of the deal.

Never willing.