Posted by JohnBoy on January 10, 2001 at 17:40:15:
Next time if you have someone specific in mind that might decide to buy the property then just EXCLUDE them from the listing. Then if that person does end up buying you won’t have to pay a commission at all.
broker’s % - Posted by Kathryn
Posted by Kathryn on January 10, 2001 at 12:16:37:
I am selling 3 properties and purchasing one. I have offered 5% (understood 2.5% to each…buyer and seller broker). On one of the properties I found the buyer myself. The broker is now taking the full 5%. I think since I got the buyer that the 2.5% should be redirected in my favor. Am I right??? My broker, with the 2.5% only, will be making 15,000 off me for the month. He may even get more as the people I sent him are funding through his lending affiliate.
I have to make the call to him before I’ll probably get your answer, but I still wanted to know what is right.
Thank you! And, may I say, what a great service this is!
Kathryn
Re: broker’s % - Posted by JasonTX
Posted by JasonTX on January 14, 2001 at 09:50:49:
This is off the subject, but still sort of related.
I’m one of those people that likes to keep things simple, and I let my agent do a lot of my work. We worked out a deal where he sells my homes on 0 % commision, but gets his standard 3% when I buy (unless we partner on the deal).
I don’t care who finds the buyer when I sell because he does the paperwork, and that is of great service to me.
On a L/O, I give him a portion of the Option Consideration that the Tenant/Buyer gives me. The amount varies, but is always at least 1K.
The bottom line is that he makes money and I don’t have to sit around worrying about paperwork. I also try not to be a pain in his a$$.
Re: broker’s % - Posted by Brent_IL
Posted by Brent_IL on January 11, 2001 at 16:31:04:
If there’s room in the deal, I would not begrudge the broker 5 or 6%. I make them follow up and do all the things I don’t want to bother with.
Most agent s are like that… - Posted by dewCO
Posted by dewCO on January 10, 2001 at 22:24:17:
it’s all theirs and they want it all the sooner the better. A 5% commission is not much of a deal for you when giving the agent 3 listings. I would have made them go much lower, especially if your market is still pretty hot. You can try to renegotiate now, or withdraw the other 2, but expect lots of threats and strong arm tactics from the managing broker too.
A Lesson Here - Posted by Tom
Posted by Tom on January 10, 2001 at 13:59:05:
The below post are correct, most listing agreements say that the listing broker is to be paid XX amount, out of that they will pay any co-oping broker. If you sent them the buyer, they still are do the entire amount.
NEXT TIME…tell the broker that you want to add an addendum to the contract stating that if he sells the property without the assistance of a co-oping broker, or if you bring the buyer the commission will be XX amount. If he won’t do that, find one that will.
Re: Call Girl Theory… - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on January 10, 2001 at 13:43:08:
All commissions are negotiable, so it must be that the broker is going to be paid the amount that you originally agreed to pay. The agreement most likely is in writing, and is most likely signed by you if you are the one who agreed to pay the commission. If another party has agreed to pay the commission then the matter is of no concern to you.
What you are doing is called “THE CALL GIRL THEORY”. This is an effort to get the fee reduced after the fact, quite like a satisfied customer of a call girl might think that wasn’t that big of a deal, of that really didn’t take that long and I should get a refund of some of the fee.
My suggestion is to read the paperwork, and then do what you have agreed to do. You do, do what you have agreed to do , in writing; don’t you?
Re: broker’s % - Posted by CurtNY
Posted by CurtNY on January 10, 2001 at 12:58:19:
Kathryn,
Redline is right, what ever the listing agreement says will decide. My experience has been if you signed the brokers standard listing agreement then yes he will more than likely be due the full 5% if there was no selling broker (even though you found the buyer). Best of luck.
CurtNY
Re: broker’s % - Posted by Redline
Posted by Redline on January 10, 2001 at 12:31:09:
You need to read your listing agreement. Whatever the broker is entitled to (or not) will be found there. None of our opinions on this really matter - it’s what’s in writing.
RL
I disagree. - Posted by Redline
Posted by Redline on January 11, 2001 at 11:28:19:
The time to negotiate a commission is when you sign the listing agreement, NOT after the property has been sold.
And yes it’s true - most agents (just like all other people in the world that work for a living) will want to collect monies that are owed to them in writing.
RL
Re: A Lesson Here - Posted by AWWMi
Posted by AWWMi on January 10, 2001 at 23:05:14:
Scott,
would you be willing to list a property and exclude me(the seller)and, or my assign if I find a buyer before you? In other words, its a foot race to the finish. The one that finds a buyer first wins. The other person is out the 5% commision. What Tom is suggesting to Kathryn is a little nicer proposition. Simply put, the listing broker will get 5% commision if he comes up with the buyer or he gets 2.5% (half) if the seller comes up with a buyer first. Hope this helps:)
Re: A Lesson Here - Posted by Bassman
Posted by Bassman on January 10, 2001 at 21:31:25:
Forgive me if I misunderstood what you just said.
"NEXT TIME…tell the broker that you want to add an addendum to the contract stating that if he sells the property without the assistance of a co-oping broker"
that the commssion should be XX ( meaning less???)
From what I get out of this your saying, if the listing agent co-ops, he gets his share of the 5-6% commission, but if he does all the work , he should get
less??? Please tell me you meant something else.
That would be like saying, Tom, your salary is going to be this,with steve helping you, but if you do all the work yourself Tom, we will pay you less.
Tell me ,Tom, would you work at a job like that??
Why should I or any other Realtor/agent do that then ??
Sorry to get offended , Im just dont understand people saying my worth is less, than yours is.
Some agents may be worthless, I am not, I earn my commission, every bit of it and more.
Now that this is off my chest , I say thanks for letting me vent Tom.
Scott
Re: Call Girl Theory… - Posted by Kathryn
Posted by Kathryn on January 10, 2001 at 15:36:45:
Thank you ALL for your so very prompt responses!! What a great service. As for the “Call Girl”…no…I had had a real conversation prior to signing in which we discussed what would happen if I supplied the buyer (they currently rent from me, and I supposed they might be interested). Anyway…I did speak with my agent, and we have lowered the commission % to my satisfaction, as we had agreed upon in our verbal agreement last month. I’m greatful, and next time will seal it in writing!! Thanks again.
Not 2.5% - Posted by Tom
Posted by Tom on January 11, 2001 at 10:08:51:
I would reduce the commission but not by 50%, depending on the buyer and the work involved maybe to 3% or 3.5%, but not 2.5%
Re: A Lesson Here - Posted by Bassman
Posted by Bassman on January 11, 2001 at 01:31:32:
Actually ,the way it is written it says Next TIME, have it say that if the broker doesnt co-op(i.e he does all the work himself) OR the seller finds a Buyer first , the commission is XX amount.
What you are speaking about is Exclusive agency. In which the seller has the right to find his own buyer without owing the agent anything.But that they can run the buyers through the agency to negotiate and handle things and the agent will earn something agreed upon.
Most people only think about exclusive right to sell
agreements. there is also exclusive agency and open listing (yucky mess this one)
Scott
Re: A Lesson Here - Posted by Tom
Posted by Tom on January 11, 2001 at 09:46:26:
Bassman, I am not offended, I also know that not all agents will do what I’m suggesting. I DO; where my typical deal: List at 6 to 7%, I pay the co-op of 2.8%, if the seller bring the buyer to me I get 4%, if I find the buyer and double end the deal I get 5%. I don?t do this on all properties all the time, it depends on how hard the house is going to be to sell. Last year I double ended 2 deals at 6%, 1 deal at 4% and 1 deal at 4.8%.
As far as what it?s worth to sell a home, it doesn?t take twice as much work to do both sides, most of the time it?s more work dealing with a second agent.
Believe me, I work hard for every bit of what I make and I know that every one of my clients walk away from the deal happy. Most of my clients either referred me other clients or have purchased or bought other properties from me; some have done both.