I was curious if anyone here has ever negotiated down (or heard of someone else negotiating down) an agents sale commission when a purchaser was found for the property?
consider a hypothetical scenario where:
1. there is a pre determined percentage of say 4% commission on the contract 2. buyer is found and the offer is accepted verbally. 3. vendor says to agent 'take half your commission or im not signing contract of sale'
this could be because the vendor wasn't happy with the agents performance or any other reason
I was curious if anyone here has ever negotiated down (or heard of someone else negotiating down) an agents sale commission when a purchaser was found for the property? If so, by how much?
cheers
Yes is the answer, but i always try to use the same agent for the type of property i am dealing in. So farms, i use a farm agent Dale, Perth residential Andrew, hotels and commercial i take advise as to who is the top of his game in that field, Margaret River again find the agent, and he or she will earn their fee. So a good agent is basically free. Does that make sense?? Good luck Peter Feel free to clarify your question. Quality does not cost it saves. :pop:
Yeah, some agents will also sometimes cut their commissions just to get a sale through, especially if there is only a few thousand in it. They quite often will do it if the property has been a really hard to sell, earning a few hundred can be better than nothing.
Sometimes the sales agent takes the cut themselves, meaning the office will get their portion of full commission while the sales agent discounts commission from their own portion.
i was putting forward a hypothetical scenario where:
1. there is a pre determined percentage of say 4% commission on the contract 2. buyer is found and the offer is accepted verbally. 3. vendor says to agent 'take half your commission or im not signing contract of sale'
I guess this could be because the vendor wasn't happy with the agents performance or any other reasonI was curious if anyone here has ever negotiated down (or heard of someone else negotiating down) an agents sale commission when a purchaser was found for the property?
ie. a hypothetical scenario where:
1. there is a pre determined percentage of say 4% commission on the contract 2. buyer is found and the offer is verbally accepted. 3. vendor says to agent 'take half your commission or im not signing contract of sale'
this could be because the vendor wasn't happy with the agents performance or any other reason
cheers
Interesting, If you want to sell the property you are the one paying the agent. So i don't see the connection. Is it a desperation situation??? The purchaser is unaware of the agents commission, the purchaser just offers the total price for the property. Not say $100,000 plus 10% agents commission. So i have not heard of this. You need to get some very good professional advise. I have not heard of this situation. Peter from Perth Good luck
As a purchaser of a property, I have seen the REA lower his commission to secure a sale so not sure if this counts. The vendor and I were down to the last $1000 in negotiations and both of us refused to budge. So the agent dropped $1k off his commission to secure the deal.
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
Interesting, If you want to sell the property you are the one paying the agent. So i don't see the connection. Is it a desperation situation??? The purchaser is unaware of the agents commission, the purchaser just offers the total price for the property. Not say $100,000 plus 10% agents commission. So i have not heard of this. You need to get some very good professional advise. I have not heard of this situation. Peter from Perth Good luck
Another way of looking at this is the vendor has to take less for the property, so he says to the agent well i have to drop say $5,000 so you have to drop $1,000 off your commission or i take the property off the market. This is common. But it is unless it has been agreed in advance immature and unlikely to encourage your agent to help you in the future. It is not a tactic i would use. The agent may offer to drop his or her commission. I have heard also of agents dropping their commission to half if the seller introduces the buyer. The way i see it take the property off the market if you are unhappy with the agents results. Then get some more advise. Don't do these things on the fly. Measure twice cut once. And good luck Peter from Perth
Trojan
27 Aug 2013, 09:31 PM
As a purchaser of a property, I have seen the REA lower his commission to secure a sale so not sure if this counts.<br />The vendor and I were down to the last $1000 in negotiations and both of us refused to budge.<br />So the agent dropped $1k off his commission to secure the deal.
As a purchaser of a property, I have seen the REA lower his commission to secure a sale so not sure if this counts. The vendor and I were down to the last $1000 in negotiations and both of us refused to budge. So the agent dropped $1k off his commission to secure the deal.
That's great news Trojan and what i suspect Jenni may have been referring to earlier.
APF - a place where serious people don't take themselves too seriously. There's nothing else like it.
Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.
Forum Rules:
The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.
Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.
Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.
This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.
Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ
Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy
