John Mosier, Prescott's Patriot Agent  928 533-8142 (Realty ONE Group Mountain Desert)

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Rainmaker
1,336,413
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

The listing agent has a far greater liability than the buyer's agent, has far more expenses both in marketing the home and looking for sellers, and in general is more responsible for getting the home sold.

Aug 27, 2019 08:03 PM
Rainmaker
499,121
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

The commission paid to the brokerages at closings is a matter of negotiation with the listing brokerage and the seller. Good agents discuss the benefits of paying commission to the selling agent at a rate that will garner showings. But how commissions are split is really between the listing side and the seller;  the buyer's agent can always negotiate commission with their buyer directly.

Aug 27, 2019 05:06 PM
Ambassador
2,446,826
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Buyer agents who refuse to show a property based on that, are being highly unethical, putting themselves in front of clients.

Aug 27, 2019 07:02 PM
Rainmaker
1,116,995
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Yep!

I earned the listing not you. Want it to be 50/50-go get the listing!

Are you serving your buyer by worrying about the commission vs. the best property for them?

Aug 27, 2019 07:49 PM
Rainmaker
5,535,534
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

If buyer agents did not show their clients a home because of the cobroke fee, the buyer agent is the one thinking about the split and less money in his/her pocket.... the client was not in that agent's thoughts....

Aug 27, 2019 06:00 PM
Rainmaker
791,986
Peter Mohylsky. Beach Expert
PrimeSouth Properties - Santa Rosa Beach, FL
THE BEACH IS OPEN

I don’t split 50-50.  I let my seller know this up front.  it cost more to market a listing.  And my brokerage does not have 50-50 split agreements with other offices.  

I am not sure your point.  I have heard other agents comment they will not show a listing if the offer of compensation listed in our mls is too low.  That’s their problem.  

Aug 28, 2019 04:12 AM
Rainmaker
648,452
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

There's no rule that says you have to split it evenly. There are models that have it the opposite way.  Your entitled to what's on MLS, period.

Aug 27, 2019 09:12 PM
Rainmaker
2,057,703
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

Strange situation. 

We always share 50/50. 

How many of the listing agents do not ccoperate with showings and hunting for their buyers?! That is common in our area...

Aug 27, 2019 06:42 PM
Rainmaker
1,584,930
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

Interesting. 

In our MLS you won't see commissions to the listing agent, only to the buyer's agent. 

Aug 27, 2019 06:23 PM
Rainmaker
3,827,330
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Situations differ.  In California, the residential listing agreement states how the commission compensation will be shared.  It is signed by the broker and the seller.  

Aug 27, 2019 06:03 PM
Rainmaker
835,415
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

As a listing agent, I know the first imperative is to get the house sold. I do not erect barriers to achieving that goal.

As a buyers' agent, I show the houses that my buyer wants to see regardless of commission...just like all agent should do. It may be possible to negotiate a more desirable commission before showing the house but failure to do so will not stop me from showing the property.

Aug 28, 2019 06:43 AM
Rainmaker
3,716,874
Richard Weeks
Dallas, TX
REALTOR®, Broker

The broker should decide if the situation you presented serves the client.

Aug 28, 2019 03:51 AM
Rainmaker
504,088
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

I can see there are differences in how the co-broke is split in various areas of the country. In our area it's very rare to see the split at 50/50.  Wow!  I don't discuss actual percentages in an open platform but in my 20+ years of doing real estate that has not been the standard.

Aug 27, 2019 11:09 PM
Rainmaker
1,570,071
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

We always split 50/50 

Aug 27, 2019 08:30 PM
Ambassador
5,026,928
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Many policies seem to breach that Fiduciary duty, and most of them are sanctioned by the same state and Realtor assoc that claim to protect the public.  As to this situation, I really cannot say since I know little of the amount offered or what is expected in your area.

Aug 27, 2019 07:55 PM
Rainmaker
1,798,073
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

I've never heard of that in my MLS John Mosier in fact it's usually just the opposite.

Aug 27, 2019 06:58 PM
Rainmaker
1,660,095
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

It is a disservice that gets overlooked by the seller all the time. I do not think it is fair but lots of things in life aren't fair.

They disadvantage their seller in the market. When you look at the closing statement you can see that the seller was not at fault right? 

Aug 28, 2019 05:56 AM
Rainmaker
3,846,200
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

I split 50/50!

Aug 28, 2019 04:32 AM
Rainmaker
1,381,651
Wayne and Jean Marie Zuhl
Samsel & Associates - Clark, NJ
The Last Names You'll Ever Need in Real Estate

I don't think it's ethical to prioritize properties one shows a buyer on the basis of commission.

Aug 28, 2019 03:59 AM
Rainmaker
712,311
Debra Leisek
Bay Realty,Inc Homer Alaska - Homer, AK

We always co-broke 50-50   

Aug 28, 2019 12:50 AM
Ambassador
4,387,474
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I have always shared 50/50

Aug 27, 2019 08:05 PM
Rainmaker
2,589,684
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The listing agent must make sure the deal is protected & directed no matter what is the directive of fiduciary. You may push the envelope but not break it

Aug 27, 2019 07:17 PM
Rainmaker
5,167,808
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

We always split 50/50. A

Aug 27, 2019 06:44 PM
Rainmaker
467,829
Dan Pittsenbarger
Keller Williams Western Realty - Bellingham, WA
Improving Conditions

I'm a 50/50 guy as I feel that both hats (listing agent & buyer's agent) are equally challenging. There are exceptionally difficult clients on both sides and there are easy clients on both sides. So in my opinion, 50/50 is the appropriate way to keep the public's best interest at heart rather than the listing agents pocket book. There are excpetions - when a listing agent is fronting the cost for repairs, staging. I don't agree that spending money on "marketing" constitutes a reason for a higher listing side split as that "marketing" is more about the agent getting more biz than getting the property sold.  In support of that statement is not all the "marketing in the world" will sell an overpriced listing but it will often get the phone to ring.

The NWMLS going "public" in the SOC in the name of transparency, if they're really want to be transparent, may as well go public with both sides of the commish. That would really show who's acting in their clients best interest and who isn't and then the public can really "see" who's up to what and decide what's best for them.

Aug 28, 2019 10:17 AM
Rainmaker
594,902
Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

I don't care what listing agents make and they should not care what I make. ( but they sure do care...)

Anyone that thinks I MUST take whatever is in MLS has never read the interpretation of the code of ethics...I can have the buyer ask the seller to pay my commission either part or whole or more than is offered...done many times.  That is no different than asking the seller for closing costs, or repairs.

While I do think that listing agents have more expenses, a BA has the bulk of the liability...the seller just dumped the property, the buyer just bought a property, probably with some things undisclosed. Statistics show that buyers sue their agent more often then sellers sue.

If you look at the stale listings...most are paying a measly commission.

I think that if listing agents want to sell faster and look good, they should split 50-50 with the BA.  Savvy listing agents already do that.

Eve

Aug 28, 2019 08:21 AM
Rainmaker
618,336
Abby Stiller
REMAX Realty Group - Cape Coral, FL
Professional Bilingual Realtor (239) 284-8637

We split 50/50 

Aug 28, 2019 06:47 AM
Rainmaker
1,991,410
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Funny you should bring this up . I’ve seen UNHAPPY Buyer Agents who were upset getting only 50% of a Reduced Commission !

Aug 28, 2019 05:57 AM
Rainmaker
3,260,703
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

It sure can hurt the sale by keeping away buyer agents. No worse than the discout agent listing offering even less than that. The key for me is what i offer is in my listing contract and signed by seller, I do have sellers who question it and i do also bring it up when i am on a listing appoinment where there are many other agents competing for the listing. 

Aug 28, 2019 05:30 AM
Rainmaker
514,961
Greg Cremia
Shore Realty of the Outer Banks - Nags Head, NC

our listing agreement require the commission splits be signed off by the seller. I wish every listing agent would use the 60/40 split as it makes so easy to take listings from them.

Aug 28, 2019 05:07 AM
Rainmaker
3,716,968
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

I don't discuss commissions and commission splits in a public forum.

Aug 28, 2019 04:50 AM
Rainmaker
1,609,471
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

We have always split it evenly. I wass on the receiving end of a short commission years ago and vowed to never again have a transaction with that agent. The uneven split was not disclosed until at the closing table. VERY BAD!

Aug 28, 2019 08:54 AM
Rainer
348,820
David M. Dwares
Title Professionals Corp. - Fort Lauderdale, FL
Title guy with a broker license

John, you mention the selling side/listing side split, but you did not mention if the MLS offer of compensation was a fair offer.

As stated in several of the answers, we don't know what, if anything, the listing agent may have done to market the property that cost a bit more than the norm.

You say you know the seller and you had offered to list the property offering more to the selling agent than to yourself.  Yet the seller listed with someone else.  I hope your question isn't just an expression of frustration in not getting the listing.

Aug 28, 2019 08:15 AM
Rainmaker
1,119,001
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Buyer agents are the higher paid side here for many years. They most get 2-3X more than listing agent. Top USA producing broker, esquire by WSJ source comes on a private plane needs to take less than buyer agent.  Many offices if both sides are produced in the same office swallowed less commission regardless what the signed contract says. With colisting agent or co-buyer agents there are 4 agents on the contract. More interesting. Many co-agent does nothing other than collect a 50-50 commission not earned.

Aug 28, 2019 07:23 AM
Rainmaker
2,947,343
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I'm not even going there. It is what it is. 

Aug 28, 2019 05:48 PM
Rainmaker
1,698,194
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty - Kalispell, MT
The House Kat

Where I used to live, many listing agents did 66%/33% in their favor. And if a listing agent referred a buyer to a buyer agent who brought the buyer for that listing, they got another 25%. So it was more like 75%/25%.  Often, these listing agents did little work and the buyer agent did the work of both agents. In those cases, I thought it was a ridiculous process.

That being said, the commission to be provided to a co-op agent is up to the seller.  And if they only want 25% or 33% to go to the buyer agent, and the buyer agent wants more, the buyer agent needs to discuss with their buyer.

Aug 28, 2019 05:32 PM
Ambassador
3,244,472
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

I don't see where the commission split is an issue.  All that matters is what is offered in the MLS to the buyers agent.  I won't take a listing that isn't in line with what other buyer's agents have been paid.  And yes, that is something we look at in comps.  Is it less than what I work for?  Sometimes.  Depends on the situation.

Aug 28, 2019 03:18 PM
Ambassador
1,333,394
Susan Emo
Sotheby's International Realty Canada - Brokerage - Kingston, ON
Kingston and the 1000 Islands Area

I have never in my several decades of business, ever offered a 50/50 split.  I am a Listing Agent and what I negotiate with my Sellers is between the Seller and me (my brokerage)  We have privacy laws in Canada and my negotiations are never divulged.  Rarely do I work with Buyers but, when I do, there is ALWAYS a Buyers Representation Agreement which outlines exactly what I expect to be paid, prior to any homes being shown so I don't know why these BAgents are getting their knickers in a knot.  You will be paid what you are worth.

Aug 28, 2019 02:00 PM
Ambassador
3,930,974
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

My commission is based upon what is agreed upon in my Contract between me and my buyer clients or my seller clients. I share 50/50 but, I will tell you, as Nina mentioned here in the past, in Charlotte, all agents do not do this.

It's their right but, I sadly agree with you that many agents base which homes they will show upon the commission offered by the LAs. YES, it's wrong but, I would totally agree the split is why the home you mentioned didn't sell, John. 

Aug 28, 2019 09:13 PM
Rainmaker
1,071,619
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

Are you saying that had you gotten the listing you would have also had a buyer and sold it sooner for more money? I have no reason to balk at uneven splits, it's my buyer who decides what they want to purchase in spite of my compensation which is already known at the onset.     

Aug 28, 2019 12:16 PM
Rainmaker
4,556,950
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Have not had any problems.

Sep 18, 2019 06:22 AM
Rainmaker
3,655,047
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Sorry, I do not discuss commissions here.

 

Sep 02, 2019 11:18 AM