Is it possible to have different commision set in the contract with the realtor. I was planning on telling the realtor:
“If the buyer agent is involved in the transaction I will pay 6% commision and if there is no buyer agent involved I will pay 4%”.
Is it possible to have such contract where the commision varies like this? What are the upside and downside of doing this.
In real estate, everything is negotiable…that said, commissions are up for negotiation but you will have to find an agent/broker willing to make a deal. Usually, that comes as a result of a long-term relationship or with volume.
Keith
it is absolutely possible, and while negotiating the listing with an agent is exactly when this negotiation should take place. you as the seller can control this, if you find a willing agent, as a buyer you do not control the commission paid by the seller.
Another way of doing it is putting what you said in your first post in the SPECIAL PROVISIONS area to get that done. Another agent in my office does it all the time. And he is one of our top producers if not the top producer in our office.
hope that helps.
are you talking about a trec contract? commissions between individuals and their agents are set forth in the buyer’s rep or listing agreement, not the purchase contract. the only thing that talks about commission is the page 8 on how the listing agent will cooperatively compensate the other agent. using the purchase contract to talk about commission is dangerous, as the agents are not a party to the actual purchase contract.
I am not talking about the purchase contract. I already have the property. I am talking about the listing contract with realtor to sale my property.
listing agreements are typically designed by individual brokers, i am not familiar with a special provisions section. However, if your broker’s listing agreement includes that and successful agents in your office as well as you do that, probably a great suggestion.