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 Minimum Fee

Created by:
Yashjain1

Date: April 28, 2007, Number of Replies: 9


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Minimum Fee

I think that we should never consider the comission when looking for a property for our Buyers.  The key is to put their interests first before our own monetary gain.

Yash Jain

yash.jain@verizon.net

 

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Dee Miller,  IA

Date: April 29, 2007


I do believe that we should put our clients interests first when choosing homes
to show them, HOWEVER, when there are so many listings to see and many are
similiar, I am going to put the ones at the end of my list that offer out a
lower buyer agent fee than is customary in our MLS,especially if it is from a
company or agent who always offers less! I know that once in awhile the
sellers are really in a bind and can't pay as much commission to listing
broker. When I take a listing for a commission less than what our company
usually takes, I always tell the seller that if I list it on MLS as x% to buyer
agent it may be harmful to them in that they may not get as many showings! That
is just the way it is! I almost always take a hit on my end rather than have to
do that. I may be stupid, but I want that listing to sell or what is the point
of taking a listing and advertising it and never getting it sold!!!

In our market, our broker has written letters to the companys who are
dicounting their buyer agent commissions on a routine basis and stating that
they will be paid what they pay out on ours!!! and we are not the only company
that has done that!

Dee Miller, CRS, ABR, e-Pro
www.deeandtom.com
deermx@mchsi.com
--
RE/MAX REAL ESTATE CENTRE
1121 Shirken Drive, PO Box 189
Iowa City, Ia 52244
Licensed to sell Real Estate in
Iowa
(319)631-1979

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Al Napier Licensed Real Estate Broker,  CT

Date: April 30, 2007

The last dozen sellers I have had appointments with all without exception have asked me for a reduced fee (roughly 20-25% below what I normally charge) and all but one ended up paying my normal fee and are currently under deposit or already closed.
 
The one who didn't (I refused him like I did all the rest), called me this afternoon and wants me to come back over to list his place so I guess he's willing to hire me at my normal rate too like the others.
 
I guess the moral of this post is to have *your* business plan/model, show a benefit to the consumer in choosing it/you and stick to your guns by not being afraid to say no.  With half of these people mentioned above I actually got up and left their kitchen tables, only to come back a week or two later to take the listing on my terms after they called me back in.
 
Funny thing is that recently after a couple of these homes I listed hit the system, some of the other agents who had also been interviewed called me and ask me how I got the listing for full boat (as opined by my full, generous, MLS co-op offerings), when they were willing to discount to these very same sellers yet lost out anyway.
 
I really didn't have an answer for them, just wonderment that they were willing to work for such a low fee structure, though I couldn't say that to them of course :-)
 
Al in CT, JIM
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Dee Miller,  IA

Date: May 1, 2007

Since there has been a lot of talking lately about sellers asking us to lower our commissions,  I just have to tell a story that recently happened to us with a seller.
They had been trying to sell their home FSBO. They were buying a condo from the builder who owns our Re/Max Company. He told them that if they listed with one of his agents that they would get a break in their commission rate. They had been friends of Tom's since high school. They eventually did list with us and tried to get our commission down even more! We explained they were already getting a break but gullible us, we said OK and agreed to do it for another 1/2% less and still offered out to buyer agent at the customary rate. They told us the only person who had looked at it FSBO left the country for a few months and probably wasn't that interested. We explained about reserve prospects but they didn't want to reserve them even for a couple weeks.
5 months of advertising, 8 open houses, a brokers open, $30,000 price reduction,etc etc, their listing expired. They called and said they wanted to re-list and would we just change the dates on original, send it to board so it wouln't go off MLS too long and they would be in to sign a new agreement when they got back in town. I didn't feel right doing this, but they were friends and they would come in in a couple days and resign. 
2 days turned into a week and when I left them a message that they needed to get the paperwork signed. They called and left a message saying the couple down the street who looked at it when it was FSBO had called them and were interested again. They had a verbal offer and could I please put up a sale pending sign! I called them and said wait a minute, who is agent they are dealing with and they need to get me a written offer.
No,remember, they told us about these people and they didn't owe any agent anything!!! Their listing had expired !
Even though we were still advertising it and doing open houses at their request, they had no intentions of paying any sort of commission!
We didn't have a new listing agreement, they knew that and we got_______!
The moral of the story: If you don't feel right doing something, you'd better think twice about doing it! Listing agreements are legal documents! You have to treat everyone, including friends and relatives, as you would treat any other client!
Dee Miller
RE/MAX REAL ESTATE CENTRE
1121 Shirken Drive, PO Box 189
Iowa City, Ia 52244
Licensed to sell Real Estate in
Iowa
(319)631-1979
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Marie therese Van kampen Licensed Real Estate Agent,  Port Richey,  FL

Date: May 1, 2007

Minimum Fee - Dee Miller. I have not been in real estate sales long enough to have a contract expire. It is coming and I know that I have at least one seller who will probably not re-list.  He is a former neighbor. However I will not handle the sale of the property without a listing. I work hard and if I commit my money advertising and my time showing properties I would like to be compensated. I also would like the protection of a listing contract and since I am in Florida I also like the fact that we are required to have property disclosure...There are some people who think this should be caveat emptor - not on my shift if I can help it...Marie Therese Van Kampen, Weichert Realtors Hometown, Port Richey  FL 34668.
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Connie Vicary

Date: May 3, 2007

I don't think it's a matter of "if it doesn't feel right; don't do it," it's a matter of whether what you did is legal in your state. You had no contract. It's unfortunate you pursued the marketing, etc. but I bet you'll never do this again. Shame on the FSBO! It wouldn't hurt to acknowledge the timing was off and compensate you for what you did to some degree. Great lesson to learn! At least you know this will never happen again!
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Connie Vicary

Date: May 3, 2007

These commission discussions alarm me. Does everyone remember the Code of Ethics and do each of your states have a Real Estate Law Book? Some of the comments about Brokers contacting other Brokers about commissions reeks "RESPA". There are very solid and legitimate ways to negotiate and explain commission. The way to get the commission you demand is to prove it to your seller during your listing presentation or to your buyer when you discuss exclusive buyer agency.
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Lenn Harley Licensed Real Estate Broker

Date: May 4, 2007

Connievicary@sbcglobal.net wrote:
These commission discussions alarm me. Does everyone remember the Code of Ethics and do each of your states have a Real Estate Law Book? Some of the comments about Brokers contacting other Brokers about commissions reeks "RESPA". There are very solid and legitimate ways to negotiate and explain commission. The way to get the commission you demand is to prove it to your seller during your listing presentation or to your buyer when you discuss exclusive buyer agency.
==========================================

If our discussion about co-op fees alarm anyone, don't participate. We are NOT having a fee arrangement discussion. We are having an agency discussion about how you charge for your own services. Our discussion is also about advertising and bait and switch. Our discussion is also about the misconceptions of the duty of fiduciary.

We are not conspiring to FIX commissions.

When discussion a co-op with a listing agent, my BOR has a form
called the "Commission Modification Agreement".

Lenn Harley
Homefinders.com
Serving home buyers in Maryland and Virginia
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Kris Coutant Licensed Real Estate Agent,  Hudson Falls,  NY

Date: May 4, 2007

Connievicary@sbcglobal.net said:

These commission discussions alarm me.  Does everyone remember the Code of Ethics and do each of your states have a Real Estate Law Book?  Some of the comments about Brokers contacting other Brokers about commissions reeks "RESPA".  There are very solid and legitimate ways to negotiate and explain commission.  The way to get the commission you demand is to prove it to your seller during your listing presentation or to your buyer when you discuss exclusive buyer agency.
Thank you Thank you!  I believe- or at least I read it- the original post was not about using a buyers agreement to get x% co-broke. It was about not showing anything that did not offer at least that amount. I 100% agree that the way to address the matter of the co-broke is through a buyers agreement. If you want to make sure you receive at least x% commission, explain it upfront to your buyer that they will be responsible for anything less. (and I loved the above post that explains it by saying if the co-broke is higher than x, it will be refunded to the buyer after the sale. Do you also explain how rarely that happens?). That way you are giving the choice to the client if they want to see a house that offers a lower co-broke.
 
Kris Coutant
Balfour Realty Inc
Serving Upstate NY- Warren,
    Washington and Saratoga Counties
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Dee Miller,  IA

Date: May 4, 2007

Connie,
I did learn a big lesson.Lost out on commission of over $6000 and lots of advertising $. NO! It will never happen again.  I thought I was doing what was right for my seller. I trusted him and believed he would follow through with paperwork! In the end I think he used me and wanted to keep marketing just in case his FSBO client didn't come through! what I meant about it not feeling right was I knew it was wrong, I did not have a legal contract but I did it anyway!
Thanks for commenting!
Dee Miller
www.deeandtom.com
--
RE/MAX REAL ESTATE CENTRE
1121 Shirken Drive, PO Box 189
Iowa City, Ia 52244
Licensed to sell Real Estate in
Iowa
(319)631-1979

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