Real Estate Agents And Their Commissions

I find it simply amazing at how many real estate agents get offended at the mere mention of reducing a commission to get a deal done! I have suggested we do this twice in the last week to get to a couple of different homes sold and the resistance I was met with is astounding!  One agent actually wrote the following:

 “As for the commission I am not interested in reducing my commission less than 2.5%, that is already a discounted rate.  I do find it a bit insulting for the seller to propose that.”

So let me get this right making 2.5% on a $550,000 dollar house to you is a discounted commission? That’s $13,750 for showing houses? A discount? Really? How long does the person that owns this home have to work to make $13K and your balking at it?

OK so maybe you’re not a very productive (or smart) agent and you’re on a 50/50 split with your broker so you only pocket $6875 still that is not bad in the eyes of a lot of people…

Let me understand something else, you won’t take a .5% reduction to make a deal work so let’s do the math here again… 2% of 550,000 is $11,000 and 2.5% of NOTHING is well NOTHING! Even new math you end up with zero dollars in your pocket! I have news for this agent what I find insulting is zero dollars in my checking account!

Yes, I know we all have fees we need to pay to be in this business (but isn’t that true with any business?), but being insulted about having to do what you have to do to make a deal is near sighted and simply foolish! Wouldn’t your client be thrilled that you went the extra mile to help them out?

Let me tell you something, I spent 30 plus years in the swimming pool business and do you have a clue how hard one has to work to make 13K? Working in the hot sun, the mud the dirt? Running around with a buyer to look at high end homes is a walk in the park in comparison!