MLS states commissions, they tell you exactly what they’re going to be paying to the buyer’s agent, but maybe you’re thinking can negotiate this, is this a good time? This is a luxury real estate broker and local real estate celebrity, Shana Acquisto, she’s going to tell us all about that. Right now. We’re going to say like, hey, can you can you negotiate this? What are things that you could do that are similar? Maybe. Can you give credit? There’s all types of items that you’re trying to discuss here, and we want to win the offer. But can we negotiate with this commission? No, no.
MLS states commissions
Yes, we want to win the offer. And we’re seeing, you know, some of our commissions have been reduced and that is how we get paid. We are, you know, looking out for the client first and foremost.
That’s really a big thing right now is we want to do what we’ve always found over the years is if you worry about the client first and you care, right. And that’s where you set the bar, then the right thing always works. I mean, we can work for that, right? None of us can work for free. But I’ve had an instance this week, actually, where the agent on the other side, every conversation is about money. She brings up the commission and how I think we’re negotiating this because the commission and, you know, it just feels really bad. So we definitely want to look out for the client first guy.
So I hope that you guys are aware of this. But just in case, we’re going to have a reminder, when you are looking at a property in MLS, there is a stated commission, OK? Right. That commission cannot be negotiated. So if you’re not happy with the amount that’s offered, then you need to go your alternate. Your option is to go to your client and ask them to make up the difference.
OK, because whatever is stated in MLS is what you have to put in your offer. And if you do anything different than that, that’s actually an MLS violation and you can get dinged for that. So we don’t want to have any issues. We always want to follow the rules and do the right thing. So we want to make sure you guys know that.
So it’s important to discuss the rules because as Israel tours, you’re not allowed to discuss commissions. Right? I’m not technically a realtor, so I could discuss, like, whatever I want here. I don’t think there’s any issues with that in the least. Right. Hmm. I don’t know. I’m just a real estate broker or licensed by the state of Texas.
There’s there’s rules that are MLS specific rules and there are some that are like your license, I don’t know, all chat, you know. Oh, is that like just a realtor specific thing about discussing commissions or is it any one that’s like collaborating with others, discussing
Shootings? Colluding is a word that probably we probably shouldn’t include on commissions now.
So anyway, so let’s go back to that. So your options are you know, we talked about this before. This is probably if you’re seeing this often, you may want to have this conversation with your client up front and say, look, I never want this to be about the money. My you know, my duty is to you regardless of what commission is offered. Here’s the typical commission that’s offered. And we’re starting to see some people reduce that.
And it’s unfortunate because you need representation. So the only thing I’m going to ask is if it’s below X amount, we’re going to have to make it up in some way, shape or form so you can add it on to the price and get a you know, we can negotiate it into the contract. OK, but you can’t change the commission that’s offered, if that makes sense.
Yeah. So you can work it in and your buyer can pay you at closing the difference. And so that’s the way that the initial agreement is written, that it’s going to be three percent. And if it’s different, there’s there’s some numbers in there. So that discussion needs to be client side between you and your buyer client first and not worried about. Correct. On the actual contract when you submit it. Yeah.
Now, you know, to make your offer appealing, I’ve had the question of, hey, well, I would like to take a percentage of my commission and give it to the seller, you know, just kind of bypass it, bypass everybody. But I want the seller to get more at the end, and I’m willing to give that in. So that’s a little tricky because the commission is paid. The seller pays the broker. Right. So that’s how the commission works.
So even if you gave credit, there’s still I mean, it could work, but I think there’s probably different ways that we could achieve that. So let’s talk through those before you do it, because if you said you wanted to give the seller. Or a credit or credit on your commissions, it could mean if you’re listing agent has 6%, but I’m going to share X percent to the buyer’s agent. Well, if you give that up, that could be more in their pocket. Right. So we want to make sure that the money is going to the right place.
Ok, sounds good to me. So that was a question I was asked to us by an agent in the colony. Gayety asked us if she reached out and she was like, hey, I have a question about commissions and can it be negotiated once instated?
Yeah, but just know that it’s the you know, the seller client is paying the listing broker, the full commission, and then the listing broker pays the buyer’s agent.
Now, I’ve heard that I’ve heard different things and it hasn’t come from our agents, but I’ve heard that if the commission was anything other than a specific number. Right. So you can mentally think through what that number would be in your mind that there’s a whole series of agents who won’t show that property? Yes. And that’s kind of a known thing. And if it was any number less than that, if it was like point nine and it was just like just less than that number, they wouldn’t
Show it at all. So it happens. But, you know, that’s a violation of your license. I mean, you can’t you can’t do that. So you have to show you or you have a duty to your client. And if you don’t show something because of your interest and it’s not satisfactory to you, then that’s a huge violation.
And again, that should have been discussed on the other side when you signed your buyer representation agreement on what you’re getting paid and who’s paying you and how you’re collecting it. So that’s a discussion to be had up front. You know, we’ve all seen over the years this happen, but mainly when we had a foreclosure or a short sale or some bank owned ORIO. So now we’re starting to see it in different places.
So I do believe that it’s something that you might want to just have the conversation with your client and let them know that up front. Right. So if you go to your client and you say, hey, this is a commission offer, let’s go look at it. I just want to make you aware before they may choose that they don’t want to see it.
You know what? I don’t have the money to pay the difference. I don’t want to see it. So, you know, you have to just be upfront and honest. And sometimes it’s not comfortable to talk about that with your client, but it needs the conversation needs to happen.