getting into my first deal

**teodoraa** · 09-25-2007, 01:54 PM

Hello to everybody.I am new to the site and I love it already.I am new to the industry also.I received my broker's license last week.But the problem is that I started working for an agency that doesn't provide much training.
OK I have a client now(very excited).I have my first buyer that qualifies for a credit but he wants to buy a house that is listed with another agency.
Can you help me explaining the process of my first transaction being a buyer's agent.Should I go and negotiate the commission split?I've heard that the buyer's agency gets bigger percent from the commission.Is it true?(ie LAC gets 1% and BAC 2%)
And I've heard that the seller usually pays the commission.Does it mean that I will receive my commission from the listing broker?
Please,Please I need your tutor's advice.I know that most of you guys have a lot of experience in this industry and you will be willing to help a brand new agent like me.
Or at least give me some basic knowledge about the whole process of a RE transaction.
Appreciate your help.

**Honeycomb Properties** · 09-25-2007, 02:27 PM

Congrats on you first deal!

Not sure exactly how IL law and your local MLS approach the commission split, but here in IN the BAC portion of the commission split is clearly identified by the Listing Agent within the MLS listing. It is not uncommon for a Listing agent to offer more of the commission to potential Buyer's Agents in order to entice other Agents and therefore generate a buyer for the property. With that being said normally though it is an even split and I have even seen the Listing Agent walk away from the closing table with more.

As far as payment of the commission, here it must be made payable to your principle broker who then splits the commission once again with the Buyer's Agent and yes the Seller pays the entire commission that is split between the 2 Agents.

Just keep in mind, every state is a little different in how things are handled. Hopefully this helps and congrats again!

**Greg** · 09-26-2007, 04:09 AM

If your broker won't help you with this basic aspect of the business you need to start looking for a new broker as soon as possible.

**IggysListing** · 09-26-2007, 12:37 PM

Greg is right!
What you asked is fundamental and important.
The MLS listing should spell it out. However, I was taught to call
the listing agency and firm up whether they cooperate with other
agencies and this is affected by the listing agreement.
Consider another agency to affiliate with.

**slh2002_77** · 09-26-2007, 08:55 PM

You really need to get with a company that has a good training program. You will get going in the business so much faster if you do. I lost a lot of deals my first year because of my lack of knowledge for the business. Training does not just include knowing how to fill out the paperwork. You have to know how to talk to your customers and know the correct things to say. If you can make you customer feel like you an expert with the words you say,they will not even think about asking you how long you've been in the business. Once I learned how to talk to customers like a professional my business increased.

**creativeagent** · 09-27-2007, 04:29 PM

Another thing that's very very very important is to know your sales agreement inside and out!!!

Our sales agreements are 10 pages long and there are many things in there that can make an offer better for the buyer or better for the seller. You don't want to misrepresent your client by accidentally missing a key point in the offer.

Plus, knowing the contracts inside and out will give you an upper hand on how to use it to get your client out of a sale if necessary.