We have been informed that real estate agents are telling homeowners that they MUST offer at least 3% to buyer’s agents on the MLS to entice the agents to show their home. We have been informed by two sellers in Rochester that a high up member of the GRAR started mocking them for seeking to sell their homes with reasonable transaction costs (i.e., not paying $10,000 to $35,000 to sell their homes). This “professional” real estate agent with all the designations following his name even went so far as to raise his voice when they would not list with him for 6 or 7%.
Read what Griffin Coles writes on April 17, 2009:
April 17, 2009
From: Griffin Coles
Property: 291 Neros Run, Webster, NY
I am extremely happy I used America’s Choice and would never pay the sales commission to use a traditional realtor. I sold my townhouse with the use of America’s Choice and the MLS through 2.5% Real Estate Direct in 4 days. With the combination of America’s Choice and the MLS I received as much exposure to the market as any agent could offer for thousands of dollars less. In fact, a real estate agent specifically told me that I would not be able to sell my townhouse through America’s Choice because other real estate agents would not bring their clients to see the house unless they received a 3% commission. The real estate agent also had a lot of negative things to say about America’s Choice which statements were unethical and were absolutely false.
The townhouse sold in only 4 days and I ended up paying another real estate agent only 1.5% in commissions. The buyers of my townhouse found it online themselves and set up the appointment without the help of their real estate agent. That’s how much exposure America’s Choice and the MLS can provide you with.
Having Sue Payne as my real estate agent from 2.5% Real Estate Direct was a huge help. She guided me in the right direction from day 1 and all the way through the closing. Sue dealt with the buyer’s agent with the negotiations and went to battle for me. It was nice to know she had my back and looked out for my best interest. She provided me with the selling recommendations which got me the maximum price for my townhouse in the shortest amount of time.
My parents used America’s Choice, my brother-in-law used America’s Choice and now I have used America’s Choice. It really works and it saves thousands of dollars that can bue used for all the other expenses that come along with buying a home. I would recommend America’s Choice to anyone.
Thank you,
Griffin Coles
I put forth the following for your consideration:
1. Offering a commission to buyer’s agents has nothing (or very little) to do with the number of potential buyer’s learning that your home is for sale.
2. The amount, if any, that you offer to a buyer’s agent has nothing (or very little) to do with the the number of potential buyers viewing your home or making an offer.
3. This accounts for the anger displayed by the real estate agent in my discussion above.
Why do I put forth the opinion above?
A. In England, France and almost every advanced country worldwide the concept of sellers offering high commissions to buyer’s agents is unheard of.
B. The reason is simple: there is no viable reason to make such an offer to buyer’s agents for the purpose of increasing your exposure to buyers.
C. The reason there is no viable reason to offer a commission to entice a buyer’s agent to show your home is that BUYERS already (or will on their own) know your home is for sale. You don’t need a buyer’s agent to TELL potential buyers about your home. YOU and /or your listing broker have already told the buyers about your home directly through (1) Realtor.com, Homesteadnet.com, Buffaloniagarahomes.com, keepequity.com, americaschoice.com, any of the major realtors websites (which take their listings from your MLS listing with your listing broker) or any of a myriad of Internet sites that attract buyers; (2) print advertising in newspapers and real estate magazines and (3) real estate signs.
We sold a home on Seneca Lake for over $500,000 where the buyer’s agent was required to take 1% (they wanted 3%). We sold a house on Graystone in Orchard Park where the buyer’s agent took 2.5%. I understand there is another home in Orchard Park which is going to contract this week at over $400,000 where the buyer’s agent is taking 1%. We sold a home on Woodbridge in Buffalo where the buyer’s agent took 2%. 40 Chapel Woods West just sold for $285,000 where the buyer’s agent took no commission (because even though the seller was offering a commission to buyer’s agents, the buyer came directly to the listing broker). I recall a home in East Aurora which sold for over $150,000 in which the buyer’s agent took 1.5% (the interesting thing about that sale was that the same real estate company that took the 1.5% had been the prior listing broker asking 6%). In Rochester we just sold a home on Seawatch Trail for $250,000 in which there was no commission at all to the buyer’s agent (of course, many, many America’s Choice homes are sold commission free). The last four Rochester area sales with buyers agents commission being paid all had commission paid to buyer’s agents of between 1 and 2.5%. That is it.
What does this tell you? The buyers know your home is for sale because of your or your listing broker’s efforts. With regard to the MLS, a good listing broker is imperative, as the listing broker is responsible for advertising your home, including the Internet, and for taking the calls and emails from potential buyers. The MLS is only as good as your listing broker (because the listing broker’s name and phone number is the only one to appear on Realtor.com and other MLS sites).
You do not HAVE to offer a commission to buyer’s agents to increase the number of people seeing and making offers on your home. Potential buyers will find a way to see your home if a buyer’s agent does not want to show it.
Think about England and France where real estate commissions are around 2.5% total – just like 2.5% Real Estate Direct. The combination program between 2.5% Real Estate Direct and America’s Choice can bring the commission down to 1%. Use your analytical mind to see through fear mongering by people interested in forcing you to pay much more than you should, and I submit, much more than is reasonable.
All of the above doesn’t mean that there isn’t any reason to offer a buyer’s agent a commission. Some sellers feel that since some buyers have been working with buyer’s agents these sellers want to pay those agents as part of the transaction. A good buyer’s agent can have a positive impact on your sale. It is a choice. I reiterate, the reason to make such an offer to buyer’s agents should not be because buyer’s agents say they won’t show your home. Their resistance to show your home does not equate to buyers not seeing your home. They may want you to believe it does, but there is no credible evidence to support that claim. The offer to buyer’s agents should be for the positive role they can play in the transaction, and the amount does not have to be 3%.