Can anyone explain the trend of listing agents offering 60/40 commission splits? What do they tell the seller they will do besides plant a sign, enter it in the MLS, and hold an open house? It seems every other person I meet is in real estate so finding an agent in this area to sell your property is about as difficult as tossing a tourist in the gulf and hoping you hit water. I would think that finding a qualified buyer is not as simple but, I could be wrong.
Commission Split
- Thread starter poppy
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Hi Poppy,
You have asked a lot of great questions in your post. I'll answer with my opinions as succinctly as I can - please feel free to ask me or any other Realtors to elaborate.
1: ) The 60 / 40 commission splits - I find to be absurd. When listing a property, I always pay the buyers agency half of the total commission, regardless of their company policies. Yes, I've left my own money on the table, but I truly believe it is fair and right to appropriately pay the person who brings the buyer. Agents are more likely to show my listings because they know that they will be appropriately compensated.
2: ) If you, or any of your friends are interviewing Realtors about listing property, either here or anywhere else, ask what they do to market the home. In some cases, a sign and MLS entry are sufficient. However, I don't think that anyone should count on that to be the sole marketing campaign. I personally do far more than that with each of my listings (Sowal, Walton Sun, Facebook, Pinterest, MLS Tours, paid premium placement on Trulia, etc.). Please feel free to ask for more details.
3
Finding an agent is easy; finding an agent who will work to sell you property and knows the area is not as easy.
You have asked a lot of great questions in your post. I'll answer with my opinions as succinctly as I can - please feel free to ask me or any other Realtors to elaborate.
1: ) The 60 / 40 commission splits - I find to be absurd. When listing a property, I always pay the buyers agency half of the total commission, regardless of their company policies. Yes, I've left my own money on the table, but I truly believe it is fair and right to appropriately pay the person who brings the buyer. Agents are more likely to show my listings because they know that they will be appropriately compensated.
2: ) If you, or any of your friends are interviewing Realtors about listing property, either here or anywhere else, ask what they do to market the home. In some cases, a sign and MLS entry are sufficient. However, I don't think that anyone should count on that to be the sole marketing campaign. I personally do far more than that with each of my listings (Sowal, Walton Sun, Facebook, Pinterest, MLS Tours, paid premium placement on Trulia, etc.). Please feel free to ask for more details.
3
Finding an agent is easy; finding an agent who will work to sell you property and knows the area is not as easy.Excellent points and thank you for the response. Now let's hear from a 60/40 agent on why they feel it is justified. 
I'm assuming they would justify this by saying that it's "harder" to list a home than to bring a buyer (which isn't always true)... and as an attempt to recoup the costs that accompany marketing/listing a home. However, I agree with Garner... a buyer's agent should be fairly and equally compensated.
I personally have a very extensive marketing plan for listings after planting a sign and entering the home into the MLS... but making sure the basics are in order is a good start. Good description, photos, video, and price. If those aren't right, no amount of marketing will help.
There are a lot of agents around here. I think it's a requirement for being a local. You have to know at least 5 or 6 agents.
I personally have a very extensive marketing plan for listings after planting a sign and entering the home into the MLS... but making sure the basics are in order is a good start. Good description, photos, video, and price. If those aren't right, no amount of marketing will help.
There are a lot of agents around here. I think it's a requirement for being a local. You have to know at least 5 or 6 agents.
It has been a week now and not a single 60/40 agent has defended or even commented on this. Very interesting.:scratch:
Two weeks now.
Two weeks now.
You will never see a 60/40 agent post up on this and I also guarantee they never tell their seller that they are offering 40% to the buyer. I find it insulting and poor business. We offer 50/50. Its they way it should be.
You will never see a 60/40 agent post up on this and I also guarantee they never tell their seller that they are offering 40% to the buyer. I find it insulting and poor business. We offer 50/50. Its they way it should be.
I believe you are 100% correct. I'm sure in the interest of fairness the 60/40 agents insist that the listing agent keep 60% of the commission when they're representing the buyer in a transaction. Ha, just kidding!