2,456,009
Hi.
#1) settle for the 2%
#2) you've already discussed with your buyer and he/she/they have already concurred they will pay the additional .5%
#3) discuss with your buyer about the possibility of adding into the offer (if that's allowed in your state/area).
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Carol Williams
Wenatchee, WA
-
Doug Dawes
Topsfield, MA
-
Carla Freund
Raleigh, NC
-
Kathleen Daniels, Prob...
San Jose, CA
-
Shayne Stone
Fulshear, TX
-
Fred Griffin Florida R...
Tallahassee, FL
-
Eve Alexander
Tampa, FL
-
Brian England
Gilbert, AZ
-
Liz and Bill Spear
Mason, OH
3,174,937
Nothing clever involved. You either have a buyers agency agreement with your buyers that sets your minimum acceptable commission and they make up the difference between the offered co-op and your minimum, or you negotiate with the listing agent BEFORE showing for a higher co-op (and in this market, good luck with that, expect to hear some very loud snickering).
-
Chris Ann Cleland
Gainesville, VA
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Olga Simoncelli
New Fairfield, CT
-
Karen Climer
Orlando, FL
-
Doug Dawes
Topsfield, MA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Shayne Stone
Fulshear, TX
-
Lyn Sims
Schaumburg, IL
-
Brian England
Gilbert, AZ
-
Candice A. Donofrio
Fort Mohave, AZ
1,552,908
1. Your buyer/broker agreement (which you should have signed with every buyer) sets a minimum, putting the difference on your buyer, which you simply warn them up front "this house will cost you an additional .5%."
2. Ask in the buyer's offer for 2.5% - negotiate for it.
3. Accept 2% if you you didn't do #1 and couldn't accomplish #2.
Closing escrows with advocates that will refer you has much more value than .5%.
-
Diana Dahlberg
Pleasant Prairie, WI
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Olga Simoncelli
New Fairfield, CT
-
Karen Climer
Orlando, FL
-
Carol Williams
Wenatchee, WA
-
Doug Dawes
Topsfield, MA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Shayne Stone
Fulshear, TX
-
Thomas J. Nelson, REAL...
La Jolla, CA
613,494
Contrary to popular belief....(Please go read the interpretation of the code of ethics)
The Buyer Broker commission (or a portion) can be added to the offer by the buyer. A buyer can ask a seller for a new roof, credit towards closing costs, or additional commission for the agent....anything. That is then paid by the seller and does not interfere with the listing agent commission.
What is a violation of the code of ethics... is if the buyers agent suggests that the listing agent receive less commission. No one can alter any agreement between a listing agent and the seller.
Likewise, if you have a buyer agreement to receive a minimum commission of X , that CAN BE INCLUDED in the offer, and the listing agent cannot interfere.
There was a time when all exclusive buyer brokers put their commission in the offer so that they would be paid at all...yes, it has been challanged in the courts, so before anyone gets their feathers ruffled, read all of the interpretation of the code of ethics. Or send me your e-mail and I will send you documents.
HOWEVER....I would not suggest that you do that in todays climate of a crazy selllers market because you will never get your offer accepted. It is better to accept the co-op and move on to higher priced sales.
Eve
-
John Juarez
Fremont, CA
-
Carol Williams
Wenatchee, WA
-
Doug Dawes
Topsfield, MA
-
Diana Dahlberg
Pleasant Prairie, WI
-
Kathleen Daniels, Prob...
San Jose, CA
-
Richie Alan Naggar
Riverside, CA
-
Shayne Stone
Fulshear, TX
-
Lyn Sims
Schaumburg, IL
-
Fred Griffin Florida R...
Tallahassee, FL
-
Kat Palmiotti
Kalispell, MT
2,684,569
Hi, Austin.
Write it into the Offer, "Seller pays 0.5% to Buyer's Broker (your name)".
I suggest that you talk with your Board Attorney, or a real estate attorney who knows your local contract forms. Ask him/her "What wording should I use?" And of course, run it past your Broker, if applicable.
Here is one of the forms that I use:
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
-
Carol Williams
Wenatchee, WA
-
Doug Dawes
Topsfield, MA
-
Diana Dahlberg
Pleasant Prairie, WI
-
Eve Alexander
Tampa, FL
-
Kathleen Daniels, Prob...
San Jose, CA
-
Candice A. Donofrio
Fort Mohave, AZ
-
Shayne Stone
Fulshear, TX
6,416,169
1. Make sure you have a buyers agency signed that specifies what you want to be paid.
2. Then either your buyer pays anything that the seller is unwilling to pay.
or, the buyer writes into the offer that the seller will pay your full fee.
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Karen Climer
Orlando, FL
-
Doug Dawes
Topsfield, MA
-
Diana Dahlberg
Pleasant Prairie, WI
-
Kathleen Daniels, Prob...
San Jose, CA
-
Shayne Stone
Fulshear, TX
-
Eve Alexander
Tampa, FL
-
Brian England
Gilbert, AZ
1,056,097
Sure. Sign an exclusive with your buyer that in event of less than x, they will make it up.
-
Diana Dahlberg
Pleasant Prairie, WI
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Karen Climer
Orlando, FL
-
Carol Williams
Wenatchee, WA
-
Doug Dawes
Topsfield, MA
-
Shayne Stone
Fulshear, TX
-
Lyn Sims
Schaumburg, IL
-
Brian England
Gilbert, AZ
3,349,229
You have some outstanding comments here. I have read them all and have nothing new to add other than, my market is like the wild wild west.
Depending on the offer, the last one we received on one of my listings was $400,000 above asking. Would the well have agreed to pay more than what was offered? That depends on what the next highest offer was. It's all about the net to the seller/
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Fred Griffin Florida R...
Tallahassee, FL
-
Shayne Stone
Fulshear, TX
-
Carol Williams
Wenatchee, WA
-
Diana Dahlberg
Pleasant Prairie, WI
-
Doug Dawes
Topsfield, MA
-
Eve Alexander
Tampa, FL
587,238
Why bother! I use the discounted commission as a leverage for future business e.g, listing, referral etc.
When I have a BRA it states that I am paid a certain commission rate and the buyers agree. But this does happen. So I inform the buyers that they owe the difference, but I am willing to accept a few referrals and/or their agreement when their ready to sell, that they will hire me!
Great way to build future business...
-
Diana Dahlberg
Pleasant Prairie, WI
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Doug Dawes
Topsfield, MA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Candice A. Donofrio
Fort Mohave, AZ
-
Joan Cox
Denver, CO
-
Shayne Stone
Fulshear, TX
5,237,947
Accept the 2%, or have your buyer kick in a half percent. Nothing clever, just the facts.
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Doug Dawes
Topsfield, MA
-
Diana Dahlberg
Pleasant Prairie, WI
-
Kathleen Daniels, Prob...
San Jose, CA
-
Richie Alan Naggar
Riverside, CA
-
Lyn Sims
Schaumburg, IL
-
Shayne Stone
Fulshear, TX
4,716,062
As everyone else has mentioned already, get a buyer-broker agreement signed. I think it is very sad that so many agents give discounts to sellers these days but it is what it is.
-
Diana Dahlberg
Pleasant Prairie, WI
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Karen Climer
Orlando, FL
-
Carol Williams
Wenatchee, WA
-
Doug Dawes
Topsfield, MA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Shayne Stone
Fulshear, TX
1,201,302
You can ask BUT maybe the total commission is 4% & is being split 50/50
-
Diana Dahlberg
Pleasant Prairie, WI
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Candice A. Donofrio
Fort Mohave, AZ
-
Fred Griffin Florida R...
Tallahassee, FL
-
Shayne Stone
Fulshear, TX
-
Joan Cox
Denver, CO
5,111,821
Ask for it.
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Carol Williams
Wenatchee, WA
-
Doug Dawes
Topsfield, MA
-
Diana Dahlberg
Pleasant Prairie, WI
-
Kathleen Daniels, Prob...
San Jose, CA
-
Shayne Stone
Fulshear, TX
1,505,863
In some states, prior to an offer, you can submit a form to the listing office to try and change the commission. They would have to agree, of course.
I have seen agents try and sneak it into the offer. That's a bad move out here, as that invalidates the entire offer.
-
Diana Dahlberg
Pleasant Prairie, WI
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Carol Williams
Wenatchee, WA
-
Doug Dawes
Topsfield, MA
-
Shayne Stone
Fulshear, TX
-
Brian England
Gilbert, AZ
906,077
Kat is spot on. You have options. This is a discussion I have with clients up front so they know that is a possibility.
-
Diana Dahlberg
Pleasant Prairie, WI
-
John Juarez
Fremont, CA
-
Fred Griffin Florida R...
Tallahassee, FL
-
Shayne Stone
Fulshear, TX
-
Joan Cox
Denver, CO
-
Doug Dawes
Topsfield, MA
5,877,179
In a multiple offer situation if you add commission into the deal, unless the terms are much better than the other offers, you may not get the offer accepted.
-
Diana Dahlberg
Pleasant Prairie, WI
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Carol Williams
Wenatchee, WA
-
Doug Dawes
Topsfield, MA
-
Shayne Stone
Fulshear, TX
2,784,416
As a listing agent, if someone brought me a "clean" deal (?) & wanted 1/2 percent for doing so....YES to this.
-
Diana Dahlberg
Pleasant Prairie, WI
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Doug Dawes
Topsfield, MA
-
Eve Alexander
Tampa, FL
-
Shayne Stone
Fulshear, TX
921,504
1. what is plan B and C regarding the buyers choice if this deal fall apart? OH, in this market it seems you have to buy the one you see otherwise it could be a long search.
2. How does buyer feel about stepping up to the plate regarding minimal compensation.
3. Advise buyer that the REBATE disappears when the compensation is not 3%. It may be necessary to include such situations in the agreement.
4. Write the offer stating required adjustment to buyer broker compensation. Seller can reject or accept.
5. Understand there are 3 spots ahead where further negotiation will occur. Use your superior skills to reward your buyer for stepping up to the plate.
-
Diana Dahlberg
Pleasant Prairie, WI
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Doug Dawes
Topsfield, MA
-
Shayne Stone
Fulshear, TX
1,846,851
Lots of great answers here. Obviously a heated subject.
-
Diana Dahlberg
Pleasant Prairie, WI
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Doug Dawes
Topsfield, MA
-
Shayne Stone
Fulshear, TX
7,862,331
This should be covered in your agreement with your buyer client.
-
Diana Dahlberg
Pleasant Prairie, WI
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Doug Dawes
Topsfield, MA
-
Shayne Stone
Fulshear, TX
765,973
You could sign a buyer's broker agreement with your client that states your minimum commission and let's them know that they must make up any shortage. Personally I don't and wouldn't. I let all of my clients know that I serve their best interest and not my pocketbook. I once showed and sold a 1.2 million dollar home with a fixed commission of $7,000. Sucks but it all goes into the pot and at the end of the day we get paid well.
-
John Juarez
Fremont, CA
-
Doug Dawes
Topsfield, MA
-
Diana Dahlberg
Pleasant Prairie, WI
-
Shayne Stone
Fulshear, TX
-
Ryan Huggins - Thousan...
Thousand Oaks, CA
1,322,519
Best answer is from Liz and Bill Spear with the exception that they did not mention option #3 which is take the commission that is offered and move forward.
-
Diana Dahlberg
Pleasant Prairie, WI
-
Joan Cox
Denver, CO
-
Shayne Stone
Fulshear, TX
-
Debe Maxwell, CRS
Charlotte, NC
5,253,385
First of all, I'm not discussing commission in detail but, I will let you know how I handled a transaction in which I represent the buyer and the seller's brokerage did not offer the amount that my buyer had agreed to pay me on our buyers agency agreement.
I'm in the middle of something very similar to you. My buyers asked the seller to provide the difference in what the listing brokerage was offering and what they were offering me. They adjusted the price and agreed to pay the difference in any appraisal deficit.
The sellers agreed, the house appraised and we are good to go!
When you sign the BAA, always be SURE to explain how you are paid and what you are expecting to be paid. Buyers take this very seriously. Sometimes, they don't even want to tour homes that the sellers' brokerage is not offering the same amount of commission that they promised their BA.
Good luck!
-
John Meussner
Fair Oaks, CA
-
Diana Dahlberg
Pleasant Prairie, WI
-
Shayne Stone
Fulshear, TX
-
Fred Griffin Florida R...
Tallahassee, FL
3,167,489
I take my advice on the subject from GAR's legal counsel.
-
Diana Dahlberg
Pleasant Prairie, WI
-
Shayne Stone
Fulshear, TX
-
Debe Maxwell, CRS
Charlotte, NC
-
John Juarez
Fremont, CA
1,153,794
It begins with the asking and the more clever you try to make it the less likely a warm reception will be received.
-
Diana Dahlberg
Pleasant Prairie, WI
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Shayne Stone
Fulshear, TX
1,077,931
Ask the buyer to cover the .5%. If you include it in the offer, they'll likely decline thanks to it being a seller's market.
After the offer is accepted, I'd be sure to provide a discounted level of communication and help along the way to the listing agent, though. And if they had a problem with it, I'd make it clear to them that you're providing services in line with the pay.
-
Diana Dahlberg
Pleasant Prairie, WI
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Shayne Stone
Fulshear, TX
679,404
I have enjoyed reading all the answers to this question. Interesting. We all have options.
-
John Juarez
Fremont, CA
-
Debe Maxwell, CRS
Charlotte, NC
-
Shayne Stone
Fulshear, TX
-
Joan Cox
Denver, CO
3,383,384
Have your buyer pay the extra .5% or whatever it is they signed they agreed to pay in your Buyer Brokerage Agreement.
-
Debe Maxwell, CRS
Charlotte, NC
-
Diana Dahlberg
Pleasant Prairie, WI
913,348
I'd ask myself if the extra 1/2% is worth the trouble. The buyer can pay it depending on what's in your Buyer Broker Agreement. Personally, I'd be happy with the 2% if that's what is posted in the mls. If you already showed the property, then you already accepted the 2%.
-
Diana Dahlberg
Pleasant Prairie, WI