RE Ethics question

[NotCranky]

[quote=CA renter]Question:

Other than insurance and marketing, what do most brokers do to “earn” these large cuts of an agent’s commissions?

Why don’t most agents just go independent after the standard years of service, etc.?[/quote]

I’ll go out on a limb here. I think big name brand brokers are experts at stripping hopeful, new and inexperienced agents of their commissions.

With commissions in general,sometimes they are a windfall regardless of the split. This perception probably fuels much discontent towards Realtors. The amount of work agents do and don’t get paid for gets over-looked. Still, I can see why buyers and sellers hate to see it happen. My response and I think that of many agents, is to somehow arrange for compensation be aligned with the amount of marketing, effort and time a client requires.

If there isn’t a high client to sale ratio and you do have a high “image” overhead that can come with working for the big guys, you can’t afford to do this because of all the hours worked and other expenses applicable, with people who never pull the trigger. In my experience and generally speaking, big offices have worse commission splits, expect their agents to maintain a pretty high image standard, beat the bushes constantly and work with clients who are higher risk to be non-performers.( I have never worked in one. These are observations gleened from interviews when I was looking to hang my license somewhere) Under these circumstances, it could be hard to share much commission even on a windfall type deal. I don’t know anything about the broker willingness to rebate a portion of their own split. My independent broker’s policy is that we both take the same hit and he does not care what it is.

[dori]

There seem to be a couple of different topics in this thread. This posting pertains to the first topic.
I understand that agents can represent multiple buyers on a house. My issue was just that I wasn’t notified when a house I had bid on dropped out of escrow. I find nothing wrong with the agent putting a bid in on the house on behalf of a second client. But, it seems that the first client, who had previously made an offer, should also have been informed.
As for the comment about the agent wasting his time, that could be the case since I can’t read his mind. But my original offer was 95% of the asking price which seems like a respectable offer.

[dori]

There seem to be a couple of different topics in this thread. This posting pertains to the first topic.
I understand that agents can represent multiple buyers on a house. My issue was just that I wasn’t notified when a house I had bid on dropped out of escrow. I find nothing wrong with the agent putting a bid in on the house on behalf of a second client. But, it seems that the first client, who had previously made an offer, should also have been informed.
As for the comment about the agent wasting his time, that could be the case since I can’t read his mind. But my original offer was 95% of the asking price which seems like a respectable offer.

[dori]

There seem to be a couple of different topics in this thread. This posting pertains to the first topic.
I understand that agents can represent multiple buyers on a house. My issue was just that I wasn’t notified when a house I had bid on dropped out of escrow. I find nothing wrong with the agent putting a bid in on the house on behalf of a second client. But, it seems that the first client, who had previously made an offer, should also have been informed.
As for the comment about the agent wasting his time, that could be the case since I can’t read his mind. But my original offer was 95% of the asking price which seems like a respectable offer.

[dori]

There seem to be a couple of different topics in this thread. This posting pertains to the first topic.
I understand that agents can represent multiple buyers on a house. My issue was just that I wasn’t notified when a house I had bid on dropped out of escrow. I find nothing wrong with the agent putting a bid in on the house on behalf of a second client. But, it seems that the first client, who had previously made an offer, should also have been informed.
As for the comment about the agent wasting his time, that could be the case since I can’t read his mind. But my original offer was 95% of the asking price which seems like a respectable offer.

[dori]

There seem to be a couple of different topics in this thread. This posting pertains to the first topic.
I understand that agents can represent multiple buyers on a house. My issue was just that I wasn’t notified when a house I had bid on dropped out of escrow. I find nothing wrong with the agent putting a bid in on the house on behalf of a second client. But, it seems that the first client, who had previously made an offer, should also have been informed.
As for the comment about the agent wasting his time, that could be the case since I can’t read his mind. But my original offer was 95% of the asking price which seems like a respectable offer.

[NotCranky]

It sounds like you have a grievance with this realtor that you would like to have addressed. I think those posting, so far, don’t see a problem beyond that you had an agent maybe worth dumping.You have done that and you no longer want the house so it seems best to let it go?

You could go to the local board’s risk management dept. and file an ethics complaint or just try to get the best answer to your question.It would be free. There is a mediation center there too, for a fee.

[NotCranky]

It sounds like you have a grievance with this realtor that you would like to have addressed. I think those posting, so far, don’t see a problem beyond that you had an agent maybe worth dumping.You have done that and you no longer want the house so it seems best to let it go?

You could go to the local board’s risk management dept. and file an ethics complaint or just try to get the best answer to your question.It would be free. There is a mediation center there too, for a fee.

[NotCranky]

It sounds like you have a grievance with this realtor that you would like to have addressed. I think those posting, so far, don’t see a problem beyond that you had an agent maybe worth dumping.You have done that and you no longer want the house so it seems best to let it go?

You could go to the local board’s risk management dept. and file an ethics complaint or just try to get the best answer to your question.It would be free. There is a mediation center there too, for a fee.

[NotCranky]

It sounds like you have a grievance with this realtor that you would like to have addressed. I think those posting, so far, don’t see a problem beyond that you had an agent maybe worth dumping.You have done that and you no longer want the house so it seems best to let it go?

You could go to the local board’s risk management dept. and file an ethics complaint or just try to get the best answer to your question.It would be free. There is a mediation center there too, for a fee.

[NotCranky]

It sounds like you have a grievance with this realtor that you would like to have addressed. I think those posting, so far, don’t see a problem beyond that you had an agent maybe worth dumping.You have done that and you no longer want the house so it seems best to let it go?

You could go to the local board’s risk management dept. and file an ethics complaint or just try to get the best answer to your question.It would be free. There is a mediation center there too, for a fee.

[urbanrealtor]

[quote=SD Realtor]

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.
[/quote]

Not to be dense but can you define some of the pronouns above? When you say “someone” for the 50% split, do you mean agents or a layperson?

[urbanrealtor]

[quote=SD Realtor]

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.
[/quote]

Not to be dense but can you define some of the pronouns above? When you say “someone” for the 50% split, do you mean agents or a layperson?

[urbanrealtor]

[quote=SD Realtor]

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.
[/quote]

Not to be dense but can you define some of the pronouns above? When you say “someone” for the 50% split, do you mean agents or a layperson?

[urbanrealtor]

[quote=SD Realtor]

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.
[/quote]

Not to be dense but can you define some of the pronouns above? When you say “someone” for the 50% split, do you mean agents or a layperson?

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