Buyers Agent Commission
The effects of a sub 3% commission for the buyer’s agent that Shana Acquisto and Mike Acquisto and we need to talk about this with you guys.
Yes, this is an important topic because what we’re seeing out there is you’re out there hustling for your buyers. Mm hmm. And the worst thing that happens is you look up and you’re not looking at this instantly. You’re trying to help your buyer. But then you start working a deal and you look at the MLS sheet, you’re like, what, they have chopped, chopped, chopped your feet, what you’re going to earn, right? Well, that comes last. No one is your client. You work with your client. You help them regardless of what that is. Right. But, you know, that does hurt.
So on the flip side, if you’re a listing agent, OK, and you get a referral however it comes in, it doesn’t matter. You get a referral, someone wants to negotiate with you right there wheeling and dealing over here, and you kind of look at it as like, oh, that hurts. Well, I’ll just share that with the buyer’s agent if I’m going to earn less than they’re going to earn less.
And we believe strongly that that is not good. Good practice. OK. We saw this happen in 04 and 05. Then we saw it again in 08. This is very common. This happens. But what you have to think about is what is your long term goal here and what are the long term effects of you doing that while US is a brokerage? I don’t want to be that person. Right, because it spreads. People aren’t happy with it. And I guarantee you it will get out. The word will get out even if you do it one time, two times. So we’ve kind of made it an understanding here that we just don’t do that.
And we’ve talked about it many, many times. So we just kind of wanted to reiterate that I know that’s tough, but we’re not we don’t want to do that. It diminishes us as realtors, as a professional. And, you know, I hear all the time, well, how do I overcome that if I go into a seller and this is what they want to do. So I’m going to use this as an example, because this also happened to me as well. So you go in and they’re like, well, hey, you know, I came in through this referral partner. They said, you can do this.
And it’s you would just. It would be. X amount to you and X amount to the other side, OK, which are both reduced so you can come back and say, you know what, I don’t I will take that hit all from my side. I’m not doing that for the buyer’s agent because I know it’s kind of like a pass the price thing. I respect our industry. I know how hard they work, and I am not going to be the one that, you know, reduces their income. It’s just not not what I’m going to do.
So I’m going to take the hit Alami on my own. And it’s something you guys need to think about. Is this something that would cause you to not take a transaction? I don’t think so. I think we’ve all taken things that we’ve probably earned way less than than what we wanted. But it’s just not something that I think long term is is really something that we want to get involved in. So we’ve never done it
Now unless people end up seeing the property. So what what happens there is the other agent that’s looking at it. There’s a buyer’s agent on that side and they look it up and they’re like, well, let’s see all these different, right? And then all of a sudden one sticks out. But it’s not the same number as the other ones, you know, like you have Skip. Right. So what happens is you get less exposure and not specifically seeing that you’re
Not supposed to do that, but it happens.
Oh, totally different.
And you have to think of this. If they go to their client and they say, hey, this one’s a reduced commission, you’re going to have to pay the difference, they will probably skip it as well. So it’s just it’s not a good business practice. We’re professionals and, you know, you have to think about it. You know, if you think, well, I never would have taken this if I would have known that I was going to be earning this. Well, what you should be thinking about is not necessarily that you should be thinking about. This is an opportunity. What can I get?
What other opportunities can I create from this one? Right. And that’s what the that’s what it’s all about. You take that and you should be getting referrals. You you maximize that. You do open houses. You do all of these things that create other opportunities. And that’s what that deal is about. So if you get hung up on the dollar amount, then, you know, it’s probably going to hinder how you how you proceed with that transaction and it could cost you money.
Yeah, well, I’ve been generating a ton of people that have been a lot of our transactions recently have come from open houses all of a sudden. Right. And that’s the key thing. So you get a listing and the idea is to continue to get more listings from that and bring back the power of being a listing agent. Right. And so the whole idea there is to create more transactions from the singular one that you have. And open houses seem to be doing a really good job. I’ve seen a bunch of them recently that the classification was that it’s a new transaction as a result of an open house client interactive there.
If we make that, will everybody else is doing it. Well, if you’ve been here longer than a day or two, you know that we don’t do things because other people do it. We do things for the right reasons and because we we we really respect our industry. Right. So we’re going to hold on to this and we’re not going to we’re not going to do that. I just don’t think it’s a good practice. And, you know, we can beat this dead horse all day long.
But if you have any questions on it, let’s talk about it, because I know it’s hard. It’s hard when you go in and everybody starts chipping away. But, you know, maybe you do the opposite. Maybe you say, you know what, typically we’re seven percent or whatever. It is a higher than standard number. Right? I don’t know. We can talk about it. All right, it developed.
Episode Links
Shana Acquisto , Mike Acquisto
