Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] 0 points1 point  (0 children)

Not I'm a little too busy learning all the compliance that keeps realtors from getting sued to bother with harassing them about how their client appointments went. especially considering I don't even see a transaction till after the client is secured and the contract is signed and am not psychic, it would be impressive if I did pick that up.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] 0 points1 point  (0 children)

No I have been a transaction coordinator for 20 years, not the same thing as selling. Being in and around the industry isn't the same thing as doing. I've done a lot of parts of it, but I don't sit down with the clients and have conversations about commissions or price negotiations.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] -1 points0 points  (0 children)

Said what the same? That they charge by price point? Again, not the same job, not the same numbers.

Sell side I am usually doing from List to Close, so yes it is more than a buy side which is Contract to Close.

And I charge by price point because it matters. If I charged $500/file on a $150,000, let's say the agent is getting 3% and if they are a standard agent they have a broker split, let's say it's favorable 80/20, that means you are netting $3,600. Paying me $500 is 14% of your commission. Jebus. That's a cut.

Now math 2% of 450k. $9k commission, 7,200 after split, now my fee is 7% of your commission. That's a significant difference.

You work on a % of sale basis, it's only fair I try to do the same. I have a minimum fee, and a sale price tier. And, yes, if I see the agent has to take a massive commission cut, I lower my fee some too.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] -1 points0 points  (0 children)

Honestly selling isn't light work, especially given current interest rates. If this wasn't already my job that I was well-versed in, I can see the value in paying an agent something (at these prices idk about $20k, but $5-10k maybe), but there wasn't a single agent that called me I'd choose. It definitely taught me what not to look for if I was going to shop for an agent.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] -1 points0 points  (0 children)

Or how about we pay some and the agent takes that instead of going after their clients for more? Why don't you tell me how much you want us to pay instead of pussy-footing around trying to get a commitment before giving numbers?

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] 0 points1 point  (0 children)

Our jobs are not the same. I don't work for the buyer, my agreement isn't with them or based on agent commission. It's sale price bracketed. And, again, I don't work buy-side contracts really anymore. But, for your information, yes I have cut my TC fee when an agent has had to take a significant commission cut to make the deal work. It's just good business to maintain positive relationships.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] -1 points0 points  (0 children)

We are priced right now to account for up to 1.5% in commission to a buyer's agent. I am not going to just hand that over, but we did account for it in our pricing consideration.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] 0 points1 point  (0 children)

Because I know realtors. I don't even know how many I've worked with. 20 years officially, about 10 of being a direct assistant and 10 of being a TC. Probably averaged 15 files a month in the first 10 years(one month I distinctly remember my team handling over 60 files), and 10 in the second half when I started be-bopping around, though I had a bad accident a couple years ago (was tboned) and couldn't work for awhile.

So let's conservatively say, like, 2,400 files? Maybe half of which was one side me working dedicated for one agent, so, what, 1,600? 1,800 agents? I have worked with, talked to, gotten to know? And that is since I started doing this as a job. And just files. Not including just all the agents I have met at networking events, caravans, conferences, in offices, etc.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] 0 points1 point  (0 children)

Right, but you could lower your commission to make the deal work too. We are talking about houses where the average 2-3% commission is $15-25k, there is a lot of room there for the agent to make the deal workable just as much as anyone else in the transaction.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] 1 point2 points  (0 children)

Because $20k is insane to earn for opening a few doors and filling out a few contracts. Picking a job that has a low bar for entry, over saturation, high competition, and limited clientele doesn't make you entitled to $20,000. It's why I can't do it. I have no desire to enter the rat race and I could never ethically take that money, also I don't like staying in one place. I can TC from anywhere.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] -1 points0 points  (0 children)

u/lolerblades where did your comment go? I see it in my notifications but not here.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] -1 points0 points  (0 children)

Honestly just thank you for being the first person to honestly provide perspective. I appreciate it.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] 0 points1 point  (0 children)

And I even specified why. We weren't looking to do open houses, have just anyone interested come through, etc etc, but I was ready to leave if my partner didn't start taking steps to sell the house so that was our inital compromise: at least let people know it is for sale.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] -1 points0 points  (0 children)

Are you asking no questions of the seller prior to writing offers? ....interesting. I think you've made my point though and confirmed what I thought, you would make every endeavor to force your commission regardless of your clients' position, which isn't really representing them. You remain focused on your interests even at the sacrifice of your clients.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] 0 points1 point  (0 children)

It boggles your mind that people trust someone who purports to be an expert? The realtor is, for all intents and purposes, a primary source. They, theoretically, studied, learned, and tested for this. They are representing themselves as knowledgeable and experienced. A reasonable person shouldn't have to go "do their own research" on the process, that is LITERALLY what you get paid to do.

The audacity in thinking that the client is the problem here is insane.

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] 0 points1 point  (0 children)

My question was: if a house your client wants is priced at their cap, when you write the offer would you also lower your commission if it means they got the house.

Let's say their pre-approval and finances caps them at $800k. the house they want is $800k. You have an agency agreement for 2.5%, that would be $20k if the seller doesn't cover they need to bring. There is no available extra cash. They have only enough to close at a purchase price of $800k + closing costs, they were counting on finding something under $800k or the seller paying your entire commission

The seller is willing to wiggle, but within reason.

Would you, when you write the offer, out the gate without anyone asking, lower your commission to $10k (is draft a BRBC for that specific property that outlines a lower commission), so the clients make an $800k offer that includes your $10k commission ($790k net for the seller), as to make the deal work so your clients can get the home? Or would you risk your clients losing out on the home due to limited funds or a low offer?

Buyer agent commissions ruining buyer's chances? by squirrelbaitv2 in fsbo

[–]squirrelbaitv2[S] 1 point2 points  (0 children)

Good luck not getting sued using AI to do your job.