Is it wrong to ask my buying agent to take a lower comish

Buying & Selling Real Estate
3yFollow

Is it wrong to ask my buying agent to take a lower comish

Jacob Miles
Member since 2023 · 5 posts · 4 votes

This might rub some people the wrong way. but in my short home buying history, the realtors i have worked with have provided paper work and a way to  get into the house for viewing. other than that i found the house through friends texting me or riding around or Zillow.  The homes I am looking at get a lot of attention (400k homes in need of minor work in highly sought after areas). The homes I'm looking for get multiple offers. Is it wrong to ask my realtor to drop her commission to 2% from 3%. I am already waiving inspections and sacrificing things on my part. why cant the realtor take 8000 in commission instead of 12000?  I minimize the realtors work by driving by the houses before hand to make sure I like the area. we have not looked at a house with the realtor yet. 

My offer would be $4000 stronger if the realtor takes 2% is my argument. Its not 1990 where 3 percent was a fair wage. 3 % on a 4-500k house is insane for paperwork, especially when i find the homes online or driving around and I'm waiving inspection and putting down 20%. End rant. but can i get some pros thoughts on this?


have flipped one house successfully and own 2 college rentals for experience level reference. Thanks! 

2Reply
91 views

Most Popular Reply

Josh Shaughnessy
Member since 2021 · 88 posts · 86 votes
3y

If buyer agent compensation (which is set by the seller) is the thing losing you deals, you're looking at the wrong deals. 

Why should your agent take a pay decrease just because you want to pursue properties you cant make a competitive offer on?

You say "its only 1%" but its not. It's 1% of the purchase price, it's 30% of their pay. Would you take a 30% pay cut to work for someone who (from the tone of this post) doesn't value or respect you?

18Reply
See this reply in the discussion

41 Replies

Jump to latestLatest
  • Ricardo Hidalgo
    Real Estate Agent · Member since 2019 · 569 posts · 257 votes
    3y
    Quote from @Bud Gaffney:

    If you know how to change your oil in the car, do you still bring it in to get changed? Seems like a waste of $ !

     If you make a million dollars a year why would you want to do your own oil change? I've learn some things in life are worth paying so I can direct my focus on higher earning opportunities. I outsource everything because it gives me leverage on my time and money! Don't save money... learn to make more so it becomes a minimal expense. 

    0Reply
  • Eric Bilderback
    Real Estate Agent · Sisters, OR · Member since 2014 · 1k+ posts · 1k+ votes
    3y

    Why not ask the buying agent to represent you for a lower commission instead.  The realtor would still come out ahead.  I tried doing that one time and it bit me I had to pay an extra $12,500 and I came across like a jackass to everybody.  One of the reasons I became an agent because I could find an agent I thought that could run numbers reliably.  You will come across to everyone involved in the transaction as difficult to work with, and I would think to myself "man this guy is going to beat us up in due diligence lets select a buyer who has a higher toleration for transaction costs etc."

    0Reply
  • Rick BassettBusiness Member
    Property Manager · Greater New Haven, CT · Member since 2010 · 377 posts · 434 votes
    3y
    Quote from @Jacob Miles:

    This might rub some people the wrong way

    The fun doesn't begin until an offer is accepted, which is the easy part. A realtor's work after an accepted offer is critical if they are worth their salt they really earn their commission by keeping a deal on track and holding the transaction together, especially when inexperienced investors are involved.

    If you aren't a licensed Realtor or don't have many purchases under your belt, then you don't have much appreciation for their job.

    If you asked me to take less commission, under any circumstance I'd share my favorite Logan Roy (Succession) quote with you.

    475-900-3100
    Bassett Property Management5108 Reviews
    WebsiteView Page
    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    3y

    It's not wrong if youve negotiated such with an agent up front and theyve agreed to it.

    It would be wrong to spring that on someone in the middle of working with them after a certain amount of time. 

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    0Reply
  • Kenny Smith
    Real Estate Agent · Denver, CO · Member since 2022 · 356 posts · 228 votes
    3y

    @Jacob Miles

    I think most folks already touched on this, but the seller typically negotiates what the buyers agent will get with the listing agent.  For my clients, I don't care if it's 1% or 5%, whatever it says on the listing, is what I'll accept because I am working on behalf of my client and would never jeopardize a deal for them because I felt I wasn't getting paid enough.  That commission has already been pre-determined by the seller of what they are willing to pay me. 

    Not sure if you mean you'd want to just take the additional 1% for yourself.  Regardless, if you are concerned about the commission they're getting, you aren't working with the right agent.  A great agent can provide market knowledge, investor knowledge, municipality law knowledge, contractor connections, management company connections, negotiation tactics, and more all for the price of something you're technically not paying for anyways.  I'd recommend reaching out to some other agents, and find one that provides tremendous value.  

    Also, if that same agent drops their commission 1% because you asked, would you trust that same person in negotiating 10's of thousands of dollars for you on a price of a home?  I personally would not.

    A great agent is worth their weight in gold.  Someone else touched on it, but the folks who are happy to use me and never ask about my commission, are the ones that go straight to the top of my list when it comes to off market or other deals I discover myself that others don't have access to.  What comes around goes around.

    Best of luck to you!

    0Reply
  • Jeff Allen
    Real Estate Broker · Omaha NE · Member since 2019 · 30 posts · 31 votes
    3y
    Quote from @Kenny Smith:

    @Jacob Miles

    I think most folks already touched on this, but the seller typically negotiates what the buyers agent will get with the listing agent.  For my clients, I don't care if it's 1% or 5%, whatever it says on the listing, is what I'll accept because I am working on behalf of my client and would never jeopardize a deal for them because I felt I wasn't getting paid enough.  That commission has already been pre-determined by the seller of what they are willing to pay me. 

    Not sure if you mean you'd want to just take the additional 1% for yourself.  Regardless, if you are concerned about the commission they're getting, you aren't working with the right agent.  A great agent can provide market knowledge, investor knowledge, municipality law knowledge, contractor connections, management company connections, negotiation tactics, and more all for the price of something you're technically not paying for anyways.  I'd recommend reaching out to some other agents, and find one that provides tremendous value.  

    Also, if that same agent drops their commission 1% because you asked, would you trust that same person in negotiating 10's of thousands of dollars for you on a price of a home?  I personally would not.

    A great agent is worth their weight in gold.  Someone else touched on it, but the folks who are happy to use me and never ask about my commission, are the ones that go straight to the top of my list when it comes to off market or other deals I discover myself that others don't have access to.  What comes around goes around.

    Best of luck to you!


    0Reply
  • Jeff Allen
    Real Estate Broker · Omaha NE · Member since 2019 · 30 posts · 31 votes
    3y

    Well said! My best deals will always go to the clients who respect my professionalism. Why would I take a deal to someone that will ask me to take a haircut? It would only happy one time.

    0Reply
  • Patricia Steiner
    Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
    3y

    It's not your decision.  The seller decides on the commission and pays it.  If your realtor cuts her commission, the 1% doesn't make your deal stronger - as the 1% goes to the selling agent.  Again, it's not your decision, it would be ignorant to ask it of your realtor, and it does nothing to strengthen your deal.

    Want to make your deal stronger?  Streamline it.  Place escrow upon acceptance - versus in the customary 3 days. Up the escrow. Cut the time for the inspection contingency. Don't finance...if that's not an option, consider companies that provide you cash for your offer - and financing after it is accepted.  Make YOUR deal stronger but looking at what YOU can do to make it so.

    Best.

    0Reply
  • Minna Reid
    Real Estate Broker · Jacksonville FL & Middletown, CT · Member since 2008 · 1k+ posts · 633 votes
    3y

    If you signed a buyer broker agreement, the commission rate will be stated there. Should you wish to negotiate this rate, the best time to do it would be when you are entering into agreement. 

    However - even if your buyers agent did agree to take a lesser rate, this wouldn't equal more money for the seller necessarily, just less for the buyer agent.

    And frankly - a good agent will simply say no to your request. I certainly would. Frankly I do not want to work with any buyer who obviously does not value my time from the get go, and would probably simply choose to not work with any buyer making such a request.

    0Reply
  • Joseph Crunkilton
    Rental Property Investor · Oregon City, OR · Member since 2020 · 324 posts · 780 votes
    3y

    Agents go through tons of BS and aren't compensated for a lot of their work. If you asked me to take lower commission on our first deal I would tell you no. I feel like most solid agents will as well. 

    But everything is negotiable. It's up to you. It may hurt the relationship but it could also get you a deal. Everything has its pros and cons. 

    2Reply
  • Anthony Angotti
    Real Estate Agent · Pittsburgh, PA · Member since 2015 · 1k+ posts · 846 votes
    3y
    Quote from @Jacob Miles:

    This might rub some people the wrong way. but in my short home buying history, the realtors i have worked with have provided paper work and a way to  get into the house for viewing. other than that i found the house through friends texting me or riding around or Zillow.  The homes I am looking at get a lot of attention (400k homes in need of minor work in highly sought after areas). The homes I'm looking for get multiple offers. Is it wrong to ask my realtor to drop her commission to 2% from 3%. I am already waiving inspections and sacrificing things on my part. why cant the realtor take 8000 in commission instead of 12000?  I minimize the realtors work by driving by the houses before hand to make sure I like the area. we have not looked at a house with the realtor yet. 

    My offer would be $4000 stronger if the realtor takes 2% is my argument. Its not 1990 where 3 percent was a fair wage. 3 % on a 4-500k house is insane for paperwork, especially when i find the homes online or driving around and I'm waiving inspection and putting down 20%. End rant. but can i get some pros thoughts on this?


    have flipped one house successfully and own 2 college rentals for experience level reference. Thanks! 


     If you’re working with an agent that provides value they won’t give you a deal on that. A good agent is worth way more than your commission discount.

    If it’s a transactional agent that just pushed papers maybe they will.

    IMO when people ask me to give them a break on commission it can hurt the relationship a bit. Especially if it comes without a justification of why they think I should get less than I’m asking. Usually it means I didn’t justify my value to them in some way. If that’s the case then that’s on me,  but if they value my service and they still ask it can bump them lower down my list of priorities. 

    Just as customers pick the agent they want to work with, agents pick the customers they want to work with. So keep that in mind when asking for these sorts of things. 

    Just my two cents. 

    0Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    3y
    Quote from @Jacob Miles:

    This might rub some people the wrong way. but in my short home buying history, the realtors i have worked with have provided paper work and a way to  get into the house for viewing. other than that i found the house through friends texting me or riding around or Zillow.  The homes I am looking at get a lot of attention (400k homes in need of minor work in highly sought after areas). The homes I'm looking for get multiple offers. Is it wrong to ask my realtor to drop her commission to 2% from 3%. I am already waiving inspections and sacrificing things on my part. why cant the realtor take 8000 in commission instead of 12000?  I minimize the realtors work by driving by the houses before hand to make sure I like the area. we have not looked at a house with the realtor yet. 

    My offer would be $4000 stronger if the realtor takes 2% is my argument. Its not 1990 where 3 percent was a fair wage. 3 % on a 4-500k house is insane for paperwork, especially when i find the homes online or driving around and I'm waiving inspection and putting down 20%. End rant. but can i get some pros thoughts on this?


    have flipped one house successfully and own 2 college rentals for experience level reference. Thanks! 

    in our marketplace there're realtor offering flat rate service, if commision is higher then you will get rebate.
    you could also use seller agent as your buyer agent and split commision.


    0Reply
  • Tyler Fontaine
    Property Manager · Member since 2022 · 196 posts · 125 votes
    3y
    Quote from @Jacob Miles:

    This might rub some people the wrong way. but in my short home buying history, the realtors i have worked with have provided paper work and a way to  get into the house for viewing. other than that i found the house through friends texting me or riding around or Zillow.  The homes I am looking at get a lot of attention (400k homes in need of minor work in highly sought after areas). The homes I'm looking for get multiple offers. Is it wrong to ask my realtor to drop her commission to 2% from 3%. I am already waiving inspections and sacrificing things on my part. why cant the realtor take 8000 in commission instead of 12000?  I minimize the realtors work by driving by the houses before hand to make sure I like the area. we have not looked at a house with the realtor yet. 

    My offer would be $4000 stronger if the realtor takes 2% is my argument. Its not 1990 where 3 percent was a fair wage. 3 % on a 4-500k house is insane for paperwork, especially when i find the homes online or driving around and I'm waiving inspection and putting down 20%. End rant. but can i get some pros thoughts on this?


    have flipped one house successfully and own 2 college rentals for experience level reference. Thanks! 


     A good realtor is worth the price. They look out for you in terms of making sure things are done legally, nothing is done out of line with paperwork, they negotiate for you, etc.

    That said a deal shouldn't blow up from requesting the 1%... just prepare to find a new realtor now. A good realtor who knows his value will walk away and get the deal to another investor next time.

    Also, as a realtor I would take the reduced commission. The client would also receive a reduced service. Im at 3%, they want 2%, i'd do it for 1% and simply be a transaction facilitator - filling out paper work. I wouldn't do extra due diligence, negotiate for the buyer, etc.

    Honestly, if you're that concerned I would just spend the 90 days and $2k to get licensed yourself and broker your own deals.

    1Reply
  • Jeff CopelandBusiness Member
    Real Estate Broker · Tampa Bay/St Petersburg, FL · Member since 2015 · 1k+ posts · 2k+ votes
    3y

    Already stated multiple times in this thread, but you need to better understand how MLS-Listed real estate transactions work.

    1. The seller already agreed to pay the listing agent whatever the total commission is. Say 6% or whatever. This is part of their listing agreement. 

    2. The listing broker offers to pay a split to a cooperating broker (usually, but not always, half of the total commission), so 3% in this example, when they list it in the MLS.

    3. If the buyer's agent for some reason says "I only want 2%" - in many cases that just means the listing brokerage gets to keep 4% instead of 3%. It's already in their contract. You've accomplished nothing other than lining the listing  brokerage's pocket and short changing your buyer's agent (who still has to split the remaining 2% with their brokerage).

    A great buyer's agent is worth every penny, even if you have to pay their commission. If you don't have a great one, find one. If you do have a great one, take care of them. 

    Copeland Morgan LLC4.770 Reviews
    WebsiteView Page
    3Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    3y

    Penny-wise and dollar-foolish, but won't listen to seasoned experts.

    [email protected]248-209-6824
    Logical Property Management4.9459 Reviews
    WebsiteView Page
    1Reply
  • Luka Milicevic
    Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    3y

    @Jacob Miles

    It sounds like you really don't need an agent....

    You can do this yourself is what it sounds like to me. 

    If I have an investor that is not a licensed agent themselves (most are) and they want to buy a renovation or new construction and give me the listing on the back end I don't charge any fees over my brokers commission. 

    I have no idea how well your agent is representing you or their experience level, but here's what my personal "just paper work" looks like

    -10+ years of RE experience

    -Full list of contractors, attorneys, home inspectors, appraisers

    -Investing experience

    -MLS dues, realtor association dues, office fees, broker commissions, referral splits

    -Enormous marketing expenses 

    I like to think I provide a ton of value to my investors and they seem to think so too. If you aren't getting the value you need from your agent, which it sounds like you aren't, then you should probably stop using one. 

    2Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free