I want to consider proposing this deal to our realtor. (short back story to follow): We are selling our townhome that we bought with a 0% down VA loan in January of 2014. We used our realestate agent to buy and want to use again her to sell. Since she made a little over $10k on the purchase and are selling so soon, would it be inapropriate/jerkish to ask for her cut to be a little smaller on this sale? What I was thinking is that if we sell the house for $330K, minus $6K for renovations to the home, $5K for closing costs, and $23,100, I can break even. The largest cost there is the realtor fee. Would it be jerkish to ask for a flat 2% which would bring realtor fees to 17K? Or could I structure a deal where she gets a garunteed 2% and 3.5% if she can get $330k or higher? Any other ideas? Back story: we were planning on holding the property for 2 more years, but I have a miltary deployement this summer, and want to sell. We used the same real estate agent and she was really great and is kind of a friend. So, can I ask for a lower rate since we have brought her so much business? Thanks guys, Greg

I just sold my second home using a flat rate MLS service online. I paid 200 bucks for MLS listing, with Trulia, Realtor.com, and zillow to boot. I put a link up on craigslist. Paid a photographer 50 bucks for some pictures, wrote a better description than most of what I see realtors write, and boom, sold. Saved thousands of dollars. First one sold on the first day. This one sold in under 60 days. I get plenty of calls. Just go to lowes and buy a lockbox for 20 bucks to go on the front door. You don't need yard signs. The homeade ones get the wrong kind of calls anyway. It's a sellers market. If the house shows decently well and is priced right, it will sell. This BS about realtors doing marketing is usually hot air. The dozen or so I've talked with blather on about marketing. When it gets down to specifics, their marketing is to you, the seller, to try to get the listing. Glossy brochures don't sell houses.

@Greg Downey it's not wrong to ask her to cut the overall commission. It's done all the time and a total of 5% commission split between both agents can still be a fair amount for both agents. Most buyer's agents only get 3% not 3.5% so asking her to take 2% when you offer to pay the buyer's agent 3.5% will probably come across as an insult, plus your agent is the one who's going to be spending all the money to market your property. When you approach your agent with this proposal just ask her "what can she do to help out with lowering the commissions on the resale," then shut your mouth and wait for her to answer. You might be surprised at what she says and may end up with a better deal than you expected.

You can always ask. But the fact that she is selling the home twice in a short time period is really not relevant at all. She has to do work and invest money in making the sale, even if she sells it every year for the rest of her career.

Where are you getting $17,000 commission for 2% of a $330,000 transaction? 2% of $330,000 is $6600. And she has to split that with the agent who brings the buyer, so her commission will be $3300. And then she has to split that with her broker (usually 75/25), so her actual paycheck from this transaction would only be a little over $2400.And the bigger issue is the buyer's agent. I can't imagine that too many buyer's agents are going to be very enthusiastic about a 1% commission.

I love flat fee listings. I'm in the business, but even so the paperwork when selling to an owner occupant buyer getting a loan is not for everyone. If you're selling a townhouse in an HOA in the $300K range in CA, I recommend you list and not try to do a flat fee listing. Your buyer will likely be just like you: owner occupy, getting an FHA or VA loan. You're looking at lots of viewings, written offers, counter offers, detailed inspections, appraisals, plus HOA paperwork (if applicable). You still have to pay the buyer's agent. Who will become frustrated with you fast if you do not know what you are doing.

I wouldn't speculate about reduced commissions just yet. Have you contacted your agent and let her know you are interested in selling? Given you her idea of days on the market? Has she done a net sheet for you yet? Let her work the numbers and tell you what she can do first. I"m guessing there are a lot of variables and costs that you are really not aware of, as well as not knowing the real comparable sales. That's what agents do. Let her present to you what she can do and then negotiate the commission if necessary.

Personally, yes - I think it's a jerk move. Even if she were a personal friend or family member, I wouldn't ask her to take a cut in pay. If she's a great agent, she's worth every penny. If she's not a great agent, then find one who is. I've had renters asking me to come down on the rent when it's a fair price and there's plenty of interest at that level. I had an employer many years ask me to take a pay cut "just for a little while". Nope. It's really not her fault that you have so little equity in your home. Asking her to bear the cost of your financial issues is completely unfair. You're wanting to pay her based on what you can afford, not based on what she's worth. And that's completely wrong.

@Greg Downey She didn't make anywhere near $10K on your purchase. $300K @3% = $9000, minus broker fee 25% minus 25% tax.. she made a little over $5,000. Is that the first house you walked into, and signed a cash offer and closed in 14 days? If so, that's pretty easy money. But I'm guessing you looked at a bunch of homes, used financing, etc. Now to list it will be a whole new scenario. Photos, marketing, etc. Do you want her to answer when someone calls at 9 PM or blow them off? Do you want her to show someone a home on short notice when she'd rather be at home with her family? If you're skimping on the commission, she's going to skimp on the service.

Am I a jerk for proposing this deal?

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Am I a jerk for proposing this deal?

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