In Cedar Park we are looking at possibly selling our home and buying another using the same agent. I know a lot of things changed after the big lawsuit. Here is what she sent over:

2% Listing Commission and a 3% Buyers Agent Commission, paid by seller.


Is that pretty standard these days? Should I negotiate that down at all?

Can you clarify what you mean? Forgive my ignorance

the historic standard was 3% to buyers agent and 3% to sellers

you have to offer the buyers agent 3% or they are less likely to show your home (sad)

with a company like Red Pear you would pay them 1.5 but the other 3% is fixed

so you would save on both of your deals

3% to buyers certainly isn't "fixed" but you're going to see most agents offer that right now as it's a buyer's market in most areas.

When interest rates were low and seller's had the power, it wasn't unusual to see brokers offering less than 3%. Like anything else, things things swing back and forth depending on the market.

As shared above, we offer full-service brokerage services with some great discounts. We charge Sellers just 1.5% to sell their homes and split our seller-paid commissions with our Buyers. All of our Red Pear agents are Aggies and we've been sponsors here at TexAgs for close to 10 years now. Felipe is our agent in Austin. His contact info is on our website and I bet he will be here shortly to offer his help.

Has anyone ever heard of an agent not showing a house for less than 3%? We're currently under contract for a place that is only offering 1.5% to our agent. And we didn't know that until we got the contract. Our agent wasn't thrilled about it but it didn't stop him from working the deal.

Yesterday said:

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Has anyone ever heard of an agent not showing a house for less than 3%? We're currently under contract for a place that is only offering 1.5% to our agent. And we didn't know that until we got the contract. Our agent wasn't thrilled about it but it didn't stop him from working the deal.

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I've listed two different homes for folks here who insisted on offering only between 1-2% to buyers agents. The local Houston agent mafia made it very clear to me that they weren't going to show my listings unless I bumped it to 3%. I had agents call and ask if 1% was a typo and hang up before I could finish saying "no". Agents no show appointments. Etc.

Red Pear Realty said:

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Yesterday said:

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Has anyone ever heard of an agent not showing a house for less than 3%? We're currently under contract for a place that is only offering 1.5% to our agent. And we didn't know that until we got the contract. Our agent wasn't thrilled about it but it didn't stop him from working the deal.

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I've listed two different homes for folks here who insisted on offering only between 1-2% to buyers agents. The local Houston agent mafia made it very clear to me that they weren't going to show my listings unless I bumped it to 3%. I had agents call and ask if 1% was a typo and hang up before I could finish saying "no". Agents no show appointments. Etc.

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I'm ignorant here, but how did they find out what the seller was offering the buyers agent before the contract?

It used to be a field on the MLS that only agents could see

In BCS, some but not all, are asking when they are setting up the showing or have questions about the listing to get the information on what the seller is paying.

It is a different world now and am a not sure it is for the better. Clients signing single representation agreements in the front yard before a showing and doing this with multiple agents on different houses. Since a seller's agent doesn't know who the buyer is on a showing, it can create a mess when the buyer tries to go behind their agent to get a deal done without their knowledge.

The entire system needs an overhaul. I wish everyone would just pay for their own representation and that the lenders would allow this to be financed into the mortgage.

I hear what you're saying, but for buyers that's basically already how it works. When a buyer uses a buyer's agent, that commission usually comes out of the seller's proceeds which are funded by the buyer's purchase price. So the buyer is already financing that cost through the mortgage.

If buyers had to pay agent commissions out of pocket on top of down payment and closing costs, it would be a big hurdle for a lot of people, especially first-time buyers.

Red Pear Felipe said:

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I hear what you're saying, but for buyers that's basically already how it works. When a buyer uses a buyer's agent, that commission usually comes out of the seller's proceeds which are funded by the buyer's purchase price. So the buyer is already financing that cost through the mortgage.

If buyers had to pay agent commissions out of pocket on top of down payment and closing costs, it would be a big hurdle for a lot of people, especially first-time buyers.

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I agree. It would take the mortgage companies allowing it to be financed. It is a major hurdle but it gets everyone paying their own representation which I think is a step in the right direction on every level.