Do Other Agents Refuse to Show Listings with Discounted Commissions?

Our listings are displayed everywhere that other listings are.  All our listings are on MLS®,  the top internet sites, have a sign on the lawn, are in the real estate paper, and we do open houses; ie we really do provide all the same services for half the price.   If someone is looking for a home in your neighborhood, in your price range, they are going to know it is for sale.  That buyer wants to look at whatever is on the market before they make their decision.  Buyers don’t pay the real estate commission, so why would they care which house they buy?

The reality is, some agents may tell you me that if you list with a discount brokerage, some buyers representatives will not show your house because they don’t get the same amount of money.   Do agents boycott low commission listings?  Unfortunately, yes, some do!

However, there is a solution in which still saves you money.

Typically, the buyer’s agent receives 50% of the selling agent’s commission.  In a $400,000 sale, the 2% listing agent earns $4000, and the selling agent earns $4000.   Would they rather have more money?  Of course.

If this is a concern for you, I offer a blended approach to the commission, that ensures that the Buyer’s agent will always show your house:

  • For the Listing Broker
    • Half the normal 2% Realty commission
      • 1% of the price of the house
  • For the Buyer’s Broker
    • Half the normal 7% on the 1st $100K & 3 % on the rest
      • 3.5% on the 1st $100K
      • 1.5% on the rest

This approach averages out to about 3%, still saving you 1% of the price of the house.

Everybody is happy, and you still save enough money to buy some furniture for you new home!

If you like numbers, click here to see how it works (edit it with google sheets and put in your exact numbers):

 

 

 


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