Should the listing agent get paid less if they represent the buyer? Episode #246
Todd: Hello! Welcome to Todd Miller TV. Joined here today with Oana who again have no idea on what we’re gonna talk about. So, to see you know I’m being serious, this is totally, this is not prepared. We haven’t/we don’t have a script like we’re reading. We’re just talking. So, Oana I get a question a lot, listing people’s properties. And the question I always hear is, “Well if I list with you and you represent the buyer too, will you discount the commission?” How do you/I mean, First of all what do you do and how do you handle that with the person? Oana:Well, you know, first of all, we do everything we can to get the property sold to begin with. Okay? Todd: Okay. Oana: So, Our goal is to get your property sold. We represent you the seller first and fore most. If by some work of fate, we end up also representing the buyer, then that’s fine. But we’re doing just as much work on the buyer side as we do on the seller side. So the compensation needs to be commencer. So here’s my question, would you be willing to pay someone that you don’t know more than someone you know and trust? How does that make sense? Todd: Okay. So, that’s a good question ’cause I don’t think people/I think what they focused on is how much the agent is taking. And because it’s being split into 2 different groups and paid into 2 different companies, people feel that’s reasonable. But all of the sudden, when you’re doing twice as much work and getting the money they see the amount and then they “Oh my gosh, that’s too much!” So, do you think that’s part of it? They just/When they realized that that whole 6% might go to that 1 role version potentially most of that goes to that 1 agent they just think that’s too much? Oana: Right. It’s stater shock. But at the end of the day you’d agree that selling you’re home is worth each amount of dollars to pay the agents involved. Whether that’s 1 agent, 2 agents, 3 agents whatever that is. And sometimes additional also agents. You may only see your listing agent but that listing agent barely has other people that they’re paying. That they’re also compensating for working on your transaction. Todd: Okay. Something else, I don’t think the average person realizes. When we take listings,if we’re good at what we do, I mean how many of the thousands or thousand to 1500 listings you sold in the last 6 years, Okay? That’s a lot of listings. How many have you not sold? Like listings taken to listings sold. What percentage? Oana: Less than 1 percent. Todd: Okay so they’re all gonna sell. Oana: Right. Todd: Okay. So if somebody calls you, and they’re saying “Hey, I’m looking for a house like this, it’s in this neighborhood, I thought you might have this listing” If you’re only gonna get paid 1 or 2% to sell your own house, but you’re gonna get 3% to sell a house across the street, do you think that incentivices agents to not. ‘Cause they know they’re gonna sell it anyway. Someone’s gonna bring a buyer and sell that house so that listing side’s covered. Do you think that this incentivices agents to go to another house? Oana: It does! I mean, it’s just human nature. Everybody looks out to some extent but for their own pocketbook. Todd: Okay. Oana: So yeah, it’s such a way that whether it’s on purpose or just subconscious, the bottomline is we all look at what is that we are gonna take home at the end of the day. Todd: Okay. Good. I like that. I think that’s an honest answer. And I think people need to understand that you don’t wanna disincentivice a specific person from helping sell your house. And if your budget is 6% and that’s what you’ve agreed to, then it’s 6% no matter whether that’s 1 person or 5 people gonna split that up. Okay. Good. Anyway, so I thought I would have a conversation with Oana and let you sort of peek in and hear some of the things that real estate agents and consumers talks about or deal with so you now you’re more informed. Anyway, that is my update for today and hope to see you on another video. Thanks!