Waive or Reduce Commission?

**kosmo** · 04-25-2008, 07:45 AM

here'e the situation: I bought a house about 18 months ago. I used a RE agent as a buyers agent, and we ended up buying a listing from her partner. It was a $240k property so she got 3% of that. Anyway, we cannot stand out neighborhood and want to move. Since I only put 5% down still owe $225k on the house (which appraises for about $260). We want to move in teh same town, just to a different neighborhood. I am friends with the RE agent and dont want to offend.

I cannot list the house and sell it, because the commission would cause me to lose too much money. Would it be reasonable to ask her to waive her commission and list the house if we used her as a buyers agent on the house we buy simultaneous to the sale of ours?

**JJohnson1985** · 04-25-2008, 02:13 PM

All people are different, and it doesn't hurt to ask. Just do not be shocked if the answer is no.

**RehabEd** · 04-25-2008, 02:35 PM

I've worked with the same independent realtor for my last three closings.

JJohnson1985 is right, it does depend on the person and it wouldn't hurt to ask.

I often think of asking her to cut back another percent, just because my real estate antics have given her some return business. I think I'm due for a discount on my next transaction with her.

**kosmo** · 04-25-2008, 02:52 PM

thx guys.

i look at it in this way: its either no commission and no sale, or she cant take the buyers agenst commission. i dont have to move, and wont unless i can sell for free (or fsbo). To me it seems like a reasonable request. she will still make a commission when i buy a house. I would consider a 3% commission IF i raised my bottom line

also there is a part of me thats sort of pissed she didnt warn me about the neighborhood. but she has helped me in other ways, so i will use her when i buy for sure.

**portland real estate** · 04-26-2008, 05:32 PM

if you trust the agent and want to work with them again. then you might offer to do a 1.5% listing and agree to get a 50% rebate of the commission when you buy. of course it depends on the local market and some markets don't allow rebates and how busy your agent is. it never hurts to ask.

**RehabEd** · 04-27-2008, 04:04 AM

It's reasonable to request a lower commission rate, considering you will use the same agent, but don't forget, your agent has to split the commission with the buyer's agent. The buyer's agent doesn't owe you anything.
Really, your agent doesn't owe you anything either, just because you don't like the house you bought.
I would ask for a small discount though.

**Codythebest** · 04-27-2008, 05:10 AM

I don't believe it will be possible for her to put it in the MLS, even without commission for her. The reason is your listing will be seen by other agents who will expect a commission. So even if she says yes to no commission, you will have to pay the other agent...

**REbuyersgroup** · 04-27-2008, 10:26 AM

It is not the agents fault you do not like the neighborhood, so asking them to forfeit their commission is unreasonable.
We all work very hard to make a living and support our families, just like you.

What if your boss told you you were not going to get paid for 3 months worth of work. Would you show up to work?

I'm tired of hearing agents reduce their fees in a market where prices are falling and gas prices are rising. You all need to charge MORE!!!! not less.

Agents need to get a backbone and stop cowering to pressure from their clients.

**Codythebest** · 04-27-2008, 05:01 PM

Originally Posted by REbuyersgroup

It is not the agents fault you do not like the neighborhood, so asking them to forfeit their commission is unreasonable.
We all work very hard to make a living and support our families, just like you.

What if your boss told you you were not going to get paid for 3 months worth of work. Would you show up to work?

I'm tired of hearing agents reduce their fees in a market where prices are falling and gas prices are rising. You all need to charge MORE!!!! not less.

Agents need to get a backbone and stop cowering to pressure from their clients.

I agree. But to make it, we need ALL of us doing it...

**REbuyersgroup** · 04-27-2008, 05:17 PM

Real Estate agents need to look at other industries for guidance in structuring compensation.

Look at the Airlines. When one raises prices, they all follow along.

Look at Gas Stations. OK I know it's supply demand thing, but I see 2 gas stations next to each other charging $3.65 gal today. Tomorrow, one of them raises prices to $3.75, and it is just a short time before the other station also raises their price.

We cannot price fix, but we do have a right to review what others are doing any modify our pricing accordingly.

ALL of my buyers are required to execute a buyers broker agreement for 3%. If the seller pays the 3%, then the buyer does not have to pay. If the seller only pays 2.5% then the buyer must come up with .5% at closing. Never had someone argue with me about it. Over 100 transactions.

Every agent that works with a buyer, should do the same. On Hilton Head Island, that is standard practice. Try to get an agent to drive a buyer all over the island with no guarantee of being paid. Never happen. Good lesson.