Comments on: Negotiating Commissions with Buyers http://www.realtybizcoach.com/2007/10/26/negotiating-commissions-with-buyers/ Fri, 09 Oct 2009 21:05:57 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: J. Ferris http://www.realtybizcoach.com/2007/10/26/negotiating-commissions-with-buyers/comment-page-1/#comment-1806 J. Ferris Sun, 04 Nov 2007 20:47:20 +0000 http://www.realtybizcoach.com/2007/10/26/negotiating-commissions-with-buyers/#comment-1806 I actually agree with everyone (for once!). I would be thrilled to take on an hourly fee over the commission but I don't think it'd be to the benefit of many buyers and brokers wouldn't be thrilled in the least bit. I have a relo buyer-client that I've worked with for about four months now and at the close of their home sale I will lose money on the transaction because I have to give 35% to their relo company. Had I charged them $150/hour for all of the advice, home tours and other efforts I had put forth, I think they would owe somewhere in the neighborhood of $15,000 or more. The commission total (including the relo company's take) will wind up being around $7,500. If anything, the hourly fee will give me MORE money to take home -- not less. For new home buyers of national builder product (where the builder agent manages the transaction) an hourly fee might be of interest but for people who need total representation they might find themselves longing for a commission model instead. I actually agree with everyone (for once!). I would be thrilled to take on an hourly fee over the commission but I don’t think it’d be to the benefit of many buyers and brokers wouldn’t be thrilled in the least bit. I have a relo buyer-client that I’ve worked with for about four months now and at the close of their home sale I will lose money on the transaction because I have to give 35% to their relo company. Had I charged them $150/hour for all of the advice, home tours and other efforts I had put forth, I think they would owe somewhere in the neighborhood of $15,000 or more. The commission total (including the relo company’s take) will wind up being around $7,500. If anything, the hourly fee will give me MORE money to take home — not less. For new home buyers of national builder product (where the builder agent manages the transaction) an hourly fee might be of interest but for people who need total representation they might find themselves longing for a commission model instead.

]]> By: Atlanta New Home http://www.realtybizcoach.com/2007/10/26/negotiating-commissions-with-buyers/comment-page-1/#comment-1787 Atlanta New Home Thu, 01 Nov 2007 18:07:56 +0000 http://www.realtybizcoach.com/2007/10/26/negotiating-commissions-with-buyers/#comment-1787 Nicely said Dave. But Ron you also make a good point about the value of new agents. Good article/post. Keep up the good work! Nicely said Dave. But Ron you also make a good point about the value of new agents.

Good article/post.

Keep up the good work!

]]> By: Ron http://www.realtybizcoach.com/2007/10/26/negotiating-commissions-with-buyers/comment-page-1/#comment-1767 Ron Tue, 30 Oct 2007 14:04:29 +0000 http://www.realtybizcoach.com/2007/10/26/negotiating-commissions-with-buyers/#comment-1767 Great suggestion, Dave, and I agree completely. Yesterday, Kris Berg posted a long entry about how hard it is to get paid as an agent, all the costs and risks they take, etc. and how there is no good model to ensure payment for these poor hardworking agents. I made the same suggestion: pay by the hour, like an attorney. Of course, then they'd have to justify an hourly rate (is a brand new agent even worth $50 per hour?), and then they'd only get paid for hours worked. That would cut most agent's annual take-home considerably, I'd bet. Great suggestion, Dave, and I agree completely. Yesterday, Kris Berg posted a long entry about how hard it is to get paid as an agent, all the costs and risks they take, etc. and how there is no good model to ensure payment for these poor hardworking agents.

I made the same suggestion: pay by the hour, like an attorney.

Of course, then they’d have to justify an hourly rate (is a brand new agent even worth $50 per hour?), and then they’d only get paid for hours worked. That would cut most agent’s annual take-home considerably, I’d bet.

]]> By: The Odysseus Medal competition — Voting for the People’s Choice Award is open | BloodhoundBlog: Real estate marketing and technology blog | Realtors and real estate, mortgages, lending, investments http://www.realtybizcoach.com/2007/10/26/negotiating-commissions-with-buyers/comment-page-1/#comment-1750 The Odysseus Medal competition — Voting for the People’s Choice Award is open | BloodhoundBlog: Real estate marketing and technology blog | Realtors and real estate, mortgages, lending, investments Mon, 29 Oct 2007 04:25:21 +0000 http://www.realtybizcoach.com/2007/10/26/negotiating-commissions-with-buyers/#comment-1750 [...] weblogging, Waking from my blog reverieKrista Baker — Negotiating buyer’s commissions, Negotiating Commissions with BuyersMorgan Brown — Lending reform, Barney Frank - Broker’s Worst NightmareKevin Boer — [...] [...] weblogging, Waking from my blog reverieKrista Baker — Negotiating buyer’s commissions, Negotiating Commissions with BuyersMorgan Brown — Lending reform, Barney Frank – Broker’s Worst NightmareKevin Boer — [...]

]]> By: Dave Barnes http://www.realtybizcoach.com/2007/10/26/negotiating-commissions-with-buyers/comment-page-1/#comment-1744 Dave Barnes Mon, 29 Oct 2007 01:43:34 +0000 http://www.realtybizcoach.com/2007/10/26/negotiating-commissions-with-buyers/#comment-1744 The hell with commissions. How about I pay you $150/hour to represent me? Just like a lawyer. Commissions are for sales reps, not for purchasing agents. The hell with commissions.
How about I pay you $150/hour to represent me?
Just like a lawyer.
Commissions are for sales reps, not for purchasing agents.

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