Your Thougts on Real Estate Commission

[Rehoboth]

Has anyone else listed the property on MLS themselves but jacked the buyers commission to 4 or 5%?

This seems like a really logical thing to do in a buyers market. The net cost(extra commission to buys, MLS listing fee and lawyer fee) will probably still be around 6% but one would think this would sell a property faster.

 

[dandxg]

Quote from Rodney King:

At this point your home is a FSBO, right? So if she wants to show it to buyers, that's her choice and it can only help you. But if she wants you to sign an exclusive with her as a <i>precondition</i> of bringing over buyers, obviously that's a red flag.

As to whether you're able to make your mortgage payments... Your personal finances are none of the broker's business, and I can't see any reason to communicate them to her.

I wanted to comment on another point you made a good one. I may sign an exclusive for a very short time period, several days. If it looks like its going to take a long time to sell I will wait. She didn't mention anything about wanting to that at all. Her associate is planning to bring them over tomorrow morning before I meet with them.

 

[Arnie]

Quote from dandxg:

An update on my on selling my house and I would like feedback and opinions please.


After interviewing several brokers we were set to meet with one last and she says hey I have a prospective buyer even though your place isn't technically on the market yet. Can you have your house ready tomorrow?

Of course I say yes.

Do you think that she may just be pulling a fast one to tie up a listing? I have heard agents do that sometimes. When I called her back and said when do you want to bring them over she said they have to arrange us into their showings sometime in the morning. I explained to her that we are motivated but far from desperate as we can easily make out payments. We are just looking to downsize as we won't be having children.

Appreciate the constructive feedback.

Dan

Just sign a listing for that one buyer. No more than 30 days.

 

[Rodney King]

Quote from Arnie:

Just sign a listing for that one buyer. No more than 30 days.

That sounds about right. If you like and trust her, sign a short-term exclusive.

My brother got into a bind recently on a home he sold in the Philly suburbs. The broker semi-retired, and lost interest in showing the listing, shortly after he signed the deal, so the house went into limbo till the exclusive finally expired. A tough spot to be in.

To get back to the discussion of what to tell a broker about your finances, again I would suggest you ST[Heck]U. If the broker is ethical, she won't pass along the info -- that you're well-capitalized and not in a hurry to sell -- to prospective buyers anyway. And if she isn't ethical, and tells buyers, she'll kill off interest in your house. Put yourself in a buyer's shoes -- no buyer wants to deal with a seller who isn't "serious" about selling.

 

[dandxg]

Quote from Rodney King:

That sounds about right. If you like and trust her, sign a short-term exclusive.

My brother got into a bind recently on a home he sold in the Philly suburbs. The broker semi-retired, and lost interest in showing the listing, shortly after he signed the deal, so the house went into limbo till the exclusive finally expired. A tough spot to be in.

To get back to the discussion of what to tell a broker about your finances, again I would suggest you ST[Heck]U. If the broker is ethical, she won't pass along the info -- that you're well-capitalized and not in a hurry to sell -- to prospective buyers anyway. And if she isn't ethical, and tells buyers, she'll kill off interest in your house. Put yourself in a buyer's shoes -- no buyer wants to deal with a seller who isn't "serious" about selling.

Sure you make good points about finances. I just don't want low ball offers.

On the exclusive another broker that we know of, whom can't rep us because he is out of area, said all you have to do to get out of an exclusive is tell them you are no longer comfortable with them and threaten to report them to the regulatory authorities that you feel they are doing their fiduciary responsibility and they will let you out. Just some helpful info to pass back. I like to deal above board so I wouldn't come to that, but good to know if you end up with a bad broker.

 

[Rodney King]

Quote from dandxg:

I just don't want low ball offers.

Why not? Takes only a second to decline them, and many <i>respectable</i> offers arise from improved low balls.

 

[Lucrum]

Quote from dandxg:

Do you think that she may just be pulling a fast one to tie up a listing?

probably, I heard the same shit when I was selling buy owner. And I hear the same lie from aircraft brokers almost every month. These low life leeches just want to lock you into a listing contract.

 

[dandxg]

Quote from Lucrum:

probably, I heard the same shit when I was selling buy owner. And I hear the same lie from aircraft brokers almost every month. These low life leeches just want to lock you into a listing contract.

That's why I will take the good advice of folks on this thread. If I sign its going to be short term only.

 

[OldTrader]

I have bought and sold many, many houses over the course of my adult life, both rental properties and personal homes. There have been very few times when I did it without an agent. Those were times when I was going to finance, and felt I had an advantage that I could advertise.

When I hire an agent, the way I do it is I look over the area to find out who is the listing agent for most of the houses in the area. I list with him/her. The reason is that I think they will have the most traffic. Neighborhood drive-bys for instance call on the sign, and become a potential buyer for all the houses that are listed by the agent.

Finally, I don't negotiate the commission down. I want the agent to work hard, not half heartedly. And certainly I don't want the buyer's agent to not show my place because I am paying less than all the other listings. And by the way, that is not "illegal" at all.

Now frankly, I don't think you're going to take my advice. But the fact is that good agents are worth the money. Problems crop up, they smooth them out. It's clear to me from reading your posts that you are no expert in real estate. And therefore you should be seeking to get the best agent you can on your side...especially in what in most areas is a difficult market, and in a price range that is not entry level.

OldTrader

 

[Arnie]

Quote from OldTrader:

I have bought and sold many, many houses over the course of my adult life, both rental properties and personal homes. There have been very few times when I did it without an agent. Those were times when I was going to finance, and felt I had an advantage that I could advertise.

When I hire an agent, the way I do it is I look over the area to find out who is the listing agent for most of the houses in the area. I list with him/her. The reason is that I think they will have the most traffic. Neighborhood drive-bys for instance call on the sign, and become a potential buyer for all the houses that are listed by the agent.

Finally, I don't negotiate the commission down. I want the agent to work hard, not half heartedly. And certainly I don't want the buyer's agent to not show my place because I am paying less than all the other listings. And by the way, that is not "illegal" at all.

Now frankly, I don't think you're going to take my advice. But the fact is that good agents are worth the money. Problems crop up, they smooth them out. It's clear to me from reading your posts that you are no expert in real estate. And therefore you should be seeking to get the best agent you can on your side...especially in what in most areas is a difficult market, and in a price range that is not entry level.

OldTrader

Good advice.