The Bandy Vlog – Cutting Real Estate Commissions

Filed under: The Bandy Vlog Posted on October 5th, 2009

Would you show a listing that paid out a low commission rate to the buyers agent?

Recently I made the decision to lower my commission rate to help out a homeowner who is going through a divorce and will be left with very little money if and when her home sells.

The clients soon to be ex-husband files a court order demanding that the judge force the homeowner and I to increase the commission to 6%. His reasoning for filing this motion is that he feels that a realtor will not show the property at the lower commission rate.

Do you agree or disagree?

Please leave a comment. Would love to hear your opinion on this matter.

http://www.vimeo.com/6900181

Tags: Fedua Bandy, Marital home Divorce, real estate commissions, Sarah Bandy

This entry was posted on Monday, October 5th, 2009 at 6:38 am and is filed under The Bandy Vlog. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Ed Fridie said at October 5th, 2009 at 4:23 pm
In a market where you can show someone 20 similar homes,
the low commissions may find themselves on the bottom of the list to be shown.

Remember Foxtons? An agent with a 50/50 split will be working for 1% of sale. It could also depend on the price of the house.
Sarah Bandy said at October 5th, 2009 at 5:01 pm
Ed:

Are you saying that most agents would do that or that you have done that?

What if a buyer asked to see that particular home, would you not show it?
Susie Blackmon said at October 8th, 2009 at 3:21 am
A realtor who does not show a house because of a lower commission, if the house is what the buyer is looking for, is not by any stretch of the imagination operating with the best interest of the client in mind. Just another reason why, when the public things of realtors, respect does not come to mind.
Sarah Bandy said at October 8th, 2009 at 6:56 am
Good point Susie!

I know times are tough but we still have to do the right thing.
John Ziemba said at October 9th, 2009 at 8:25 pm
I have not found any correlation between selling commission offered and a home selling. I have offered higher commission rate and have not seen any more activity. My clients also seem to like the houses with a lower commission for some reason. I show the homes the my buyers want to look at and the ones that fit their needs.
Sarah Bandy said at October 10th, 2009 at 1:26 pm
Don’t get me wrong….I’ve had a few agents tell me “What are you thinking Sarah”? It always blows my mind. If you don’t show them the house, someone else will so is it worth it?

I’m glad to know that you always do the right thing for your clients….Kudos to you : )