No - realtor should offer standard 2.5% to Buyer broker and only take 1% for herself. Unless she is Dual on your old house too, then she gets the 3.5%

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Posted by AUtigR24

Happy Hour

Member since Apr 2011

19755 posts

Posted on 7/25/18 at 9:04 pm to ItNeverRains

quote:
You've drawn a line in sand saying whatever commission you negotiate as listing agent will be split 50/50 with sellers agent. Let me propose a hypotethical. Say you have a 1M listing agreement that will sell quickly and all seller is willing to offer is 3.5% total commission, but wants you to offer buyers agent 3% of that and you only take .5%. For that, they will sign an exclusive buyers rep agreement with you for a full 3% commission and are buying a house in the 1.5-2.0M ballpark. Go.

Absolutely in your scenario.

Our average home sells for around $160k IIRC. If you were to take 1% of that by the time you pay out your broker 70/30 split and franchise fees you would literally walk away peanuts. That's why I was using the standard listing agent / selling agent 50/50 split

But like you said if it's a high dollar listing and you know it will move quickly then absolutely.

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Posted by ItNeverRains

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Member since Oct 2007

25402 posts

Posted on 7/26/18 at 5:18 am to AUtigR24

quote:
Absolutely in your scenario. Our average home sells for around $160k IIRC. If you were to take 1% of that by the time you pay out your broker 70/30 split and franchise fees you would literally walk away peanuts. That's why I was using the standard listing agent / selling agent 50/50 split But like you said if it's a high dollar listing and you know it will move quickly then absolutely.

So your broker would let you take less than 5% if the numbers work

Can’t understand, especially in markets with median prices so low, why on earth you’d do a 70/30 split with big box brokerage (assuming it’s capped around 16k-ish). I pay $500 per closing & after 10 closings I keep 100% of my money. My monthly fees are $50/mo. Of course I have MLS and Association and E&O but you need to keep more of your money unless the referrals directly from brokerage are unbelievable

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