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Armen Hareyan (HULIQ.com Where Every Real Estate Agent is Welcome To Blog and News is indexed by Google News.)

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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

Armen Hareyan Since there is no "customary" commission rate (per DOJ), it follows that there cannot be a "lower than customary" commission rate.  That said, regardless of total commission (which is unknown to anyone other than the Seller and the Listing Broker until closing docs are seen by the Buyer) the offered co-broke is not visible to the Buyer when they are reviewing listings and deciding what to put on their list of properties to see. If "all area agents" viewed the offered co-broke as "lower", why would that "attract" them to the listing?

Nov 17, 2015 09:19 PM
Rainmaker
1,728,556
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

No; such a listing would receive negative attention.

Nov 17, 2015 10:33 PM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

"Lower than customary ....to attract attention from all area agents?"

No.

Experience has shown this is a good proctice if you want the real estate to "go black' and essentially become invisiable except to those trolling the dark side.

Nov 17, 2015 09:28 PM
Rainmaker
699,277
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

Never and I won't show those properties either.

Nov 17, 2015 09:20 PM
Rainmaker
1,554,237
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

Yes, I saw this on a Seinfeld once, it was called the Bizzaro World episode, where everything was opposite. 

Nov 17, 2015 09:39 PM
Rainmaker
3,340,443
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Lower than ?  We have seen it higher than....but don't use this a a way to market properties.

Nov 17, 2015 09:19 PM
Rainmaker
1,847,471
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Lower is a bad all around idea as it puts your seller at a disadvantage. Might put YOUR pocketbook at an advantage. Above scenario screams 'where's the agents value potential?' Can't sell yourself to the seller on what you can do.

I just listed an expired listing where this exactly happened & the agent did NOT point out to the seller that paying that percentage would give them no showings.

Nov 17, 2015 10:10 PM
Rainmaker
913,818
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

I've done it, but not to attract all area agents. I've done it because the sellers were at break even, had no money to bring to settlement, and we wanted to avoid short sale and keep price as low as possible to attract buyers. It's rare to see a 4 - 2 split.

Nov 17, 2015 09:45 PM
Rainmaker
5,583,328
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

that's not to attract agents....that's to get the listing.... most agents won't like the 2% cobroke fee... but will show it anyway....

Nov 17, 2015 09:36 PM
Ambassador
6,422,434
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

No, I like to establish myself as a professional from the start.

Feb 10, 2019 11:09 PM
Rainmaker
2,378,738
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

there is no customary commission - and no - that attention would all be negative and sometimes even hostile. 

Nov 20, 2015 09:42 PM
Rainmaker
1,506,613
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

How would the other agents even know what commission you listed it at?  The total commission is only ever on the listing contract (at least in my part of California).

Nov 19, 2015 08:18 AM
Rainmaker
4,319,773
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Armen Hareyan I would rather prefer to go up in co-broke compensation, if possible. 

By offering lower than customary commision rate, we can attract the attention, however, the results may not be desirable.

Nov 18, 2015 02:45 PM
Rainmaker
902,238
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

The common thinking is that this sort of structure would rather deter other agents... 

Nov 18, 2015 12:16 PM
Rainmaker
3,986,308
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

NO!

Nov 18, 2015 09:59 AM
Rainmaker
1,731,203
Rob Thomas
Prestige Homes of The Tri Cities, Inc. CALL....423-341-6954 - Bristol, TN
Bristol TN-VA & Tri Cities Agent, ABR, GRI, e-Pro

It's a negative in my opinion ....I just recently posted this same question ....only stated higher than customary ...

Nov 18, 2015 05:19 AM
Rainmaker
2,487,222
Captain Wayne - Rowlett Real Estate School
Rowlett Real Estate School - Panama City, FL
Rowlett Real Estate School / Owner and Instructor

I can not say that I have tried that tactic.

Nov 18, 2015 02:22 AM
Rainmaker
1,664,536
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

I have listed for less on my end but the buyers Broker always gets the regular cut. 

Nov 17, 2015 11:03 PM
Rainmaker
5,879,035
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Never have

Nov 17, 2015 11:02 PM
Rainmaker
115,432
Jeanne Feenick
NextHome Premier - Basking Ridge, NJ
The Agent you choose REALLY does make a difference

This strategy may well get the attention of other agents but not in a positive way in my opinion.  No, I would not do it, nor have I.

Nov 17, 2015 10:55 PM
Rainmaker
7,869,279
Roy Kelley
Retired - Gaithersburg, MD

In our market, a 50/50 split on the commission is customary for residential sales. Deviatation does attract attention but something lower than expectations may not result in a showing by some agents.

Nov 17, 2015 10:51 PM
Rainmaker
1,466,257
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Armen Hareyan I don't buy listings.

Nov 17, 2015 10:32 PM