Urban thank you for the correction. E if the home you would be writing an offer on was procurred for you by the original agent then yes any offer you would ask another agent to write subsequently could pose a problem. The agent who procurred the home originally for you could petition for the commission. This is not just true for that home but even other homes that you may have received from that agent in auto MLS emails and such. Thus it would be best to ask your original agent to send you a cancellation of contract even though there is nothing formally in ink between the two of you.
As far as rebates go urbanrealtor you missed the point. Yes a broker doesn’t care what thier own agent does with thier cut. As you know all commissions are paid to brokers not agents. Brokers then give cuts. In my post I said broker but it sounds like I should have been more explicit as you seemed to disect it a bit more then others would have. In large brokerages I don’t know of any brokers who will give up any of thier own cut or the corporate cut, or the offices cut. Thus in your model you are limiting the rebate to a fraction of the 35% of what the Prudential Agent makes. Hmm… that doesn’t sound like much of a deal to me. Obviously this is not the model other providers use. Places like Redfin or smaller independents do not follow any such practice at all and offer much more robust rebates for alternative service models.
That is one of the main problems working with a large brokerage is that there are many hands in the commission pie. Thus buyers are limited because of that. Similarly agents are biased as to working harder for larger sales as opposed to smaller sales because as you stated, it really is not worth your time is it? I highly doubt that any broker in any large brokerage will accept a reduction in THIER commission. Perhaps the brokers you work for have been overly generous I guess. So in your example above if someone wanted say a 50% commission split how would that work? Your Prudential agent certainly would not work for them for free correct? Thus would his broker accept a reduction in his money? Perhaps for a very large purchase I can see it but for run of the mill stuff I highly doubt it. Show me a Prudential Broker who will accept that and I will gladly admit I am wrong. Alternately I guess you work with very benevolent brokers.
