All Forum Posts by: Jacob Miles
Jacob Miles has started 1 posts and replied 5 times.
Post: Is it wrong to ask my buying agent to take a lower comish
- Posts 5
- Votes 4
Quote from @Josh Shaughnessy:
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?
If a realtors only fighting strategy is to tell their buyer to pay way over asking, is that a realtor you want on your side? or do you want the one who will make your offer stronger by writing in the contract that they will only take 2 % in an effort to save the seller money. (obviously the seller pays this). If i was a seller and offers were equal. I take the one that the buying agent isn't getting 3 percent to send a DocuSign and open a door.
My out of state realtor deserves 10% for showing videos, ligning up inspections, finding me off market deals, literally doing his job to the fullest.
My local deserves 1-2%
It comes down to working with your client. It will be obvious in a year when the ones who don't know how to win deals are scrounging for deals.
Post: Is it wrong to ask my buying agent to take a lower comish
- Posts 5
- Votes 4
Quote from @Henry Clark:
A. The seller is paying the buyers commission. It’s not coming out of your pocket.
The sellers agent who lets say is getting 7% is going to charge them 7% whether your buyer agent gets 1% point less.
B. How many offers have you made through a broker that you did not win? Say 5
How many offers through a broker did you get? Say 1
Did you pay them for the 4 offers you didn’t win?
C. Our last deal we bought I paid our buyer agent $20,000 commission that I didn’t need to do. Because he is part of my “Team”. List $1.4mm got down to $900k, negotiated down to $800k. Deal instead of taking 1 month to close took 5 months. He brought the deal home. So what that is just one deal? Before that he brought me a deal that after development added $760k appraised value on just the land, which helped on the development loan. Didn’t have to bring hardly any cash to the deal.
I love my buyer agent.
Same success with my other local agent.
Same success with our other agent in Belize.
Same success with our seller agent. As we were selling lots in our subdivision and he kept making the sales happen.
Common thread is they are part of our team.
Find an agent you enjoy working with. Even if you find the property have them approach the sellers agent. They will love you. They get a commission that someone else’s is paying. Realize they don’t get all of the commission.
Post: Is it wrong to ask my buying agent to take a lower comish
- Posts 5
- Votes 4
Quote from @Steve Vaughan:
Most of ours are 2.5% but I get what you're saying. Wait until you don’t have an agent at all and are told it doesnt matter because the collusive and exclusive listing agreement has the seller paying either way.
The big reason you won't get a reduction from a BA is because you need to pay for all the other 'buyers' that wasted their time. Theyll also say how they hwve to check with and split it with their broker, but the real reason is to compensate them for all the failed BA deals.
Post: Is it wrong to ask my buying agent to take a lower comish
- Posts 5
- Votes 4
Quote from @Arsen Atanasovski:
I’ve never heard of a deal breaker because of 1%. Here are your options, by it yourself and have no agent represent you, then you will be $12,000 stronger!
or put your money where your mouth is and fork over the $4000, I don’t think this would break you.
My thought exactly! 1% isn’t a deal breaker, so the realtor shouldn’t loose a deal over that. 4000 isn’t a big deal, so the realtor who isn’t coughing up 20 % and isn’t taking a huge chance waiving inspection would definitely be willing to go from 12000 to 8000 commission on a 400000 house. I see your point, Thanks for your insight.
Post: Is it wrong to ask my buying agent to take a lower comish
- Posts 5
- Votes 4
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!