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    catonsville's Avatar
    catonsville Posts: 894, Reputation: 91
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    #1

    May 16, 2016, 10:24 AM
    Real estate Question
    I drop my selling price to 191K from my 196K and the buyer submits a 190K with both agents agreeing to kick in 500 dollars less on their commission.
    The way I see it they are not dropping the commission from 6% to 5% and I stand to lose an additional 900 dollars in the deal, what do you think? The drop of 1% commission is $1900 dollars and some change.
    This is not a homework question as I have been out of school 65 years. LOL
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
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    #2

    May 16, 2016, 11:00 AM
    T*A*K*E****I*T!!!!

    Good grief. I have been through several such transactions. It's very common. And not many offers are that close anyway. Yes, 6% is less often demanded these days, but still.
    So the buyer pays 190 and the agents give back 1, and you are at 191, your asking price... am I missing something? They tried to pull the wool over your eyes by saying they were dropping 1% commission, and lied about how much that is? Agent double talk, but let it go, take the money, and run.

    It's an election year, and it's a very weird election, and the financial markets are weird right now. Just heard one guy say that the only people saying the economy is as good as it is are those in the gov't. TAKE THE MONEY!
    catonsville's Avatar
    catonsville Posts: 894, Reputation: 91
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    #3

    May 16, 2016, 12:26 PM
    Actually I dropped it 4K to 192K and the offer was for 190K and I was asked to come down another 1K to 191K and the realtors said they might get the deal at 191K. That is when the realtors came up with $500 each less in commission each. So not really kosher. The deal actually costs someone namely me 1900.
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
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    #4

    May 16, 2016, 01:45 PM
    But how is any of that meaningful?
    My current house was listed at 350 for 2 years, with 3 million dollar houses all along the road.
    When it dropped to 299, I offered 262. They countered 289. I said I can't (true). They took the 262. The town had it valued at 350 or something. Zillow has it valued at 425 or something. I felt sorry for them! But with older kitchen and baths, and today's clueless buyers wanting granite and stainless steel and separate all glass showers, no one wanted it at all. Except me.

    It's all what the market will bear. It all depends on how long your house was on the market and how many nibbles you got. After a month, you HAVE to say 'this is the market at this time in this part of the state and country.'

    No one pays the asking price unless a bunch of buyers are fighting over it or it's a real find. It's like no one pays sticker price for a car.
    As for 6% to 5%, you didn't have to agree to 6% when you first listed. Water under the bridge. You 'lost' 900 on the commission, but you SOLD THE HOUSE!! YAY!

    Are you going to buy a condo or something downsizing? Be just as ruthless as everyone else.

    I went downhill a lot after buying this house and should have bought a condo... I'll try to be a savvy seller... there's always some new surprise though.
    ebaines's Avatar
    ebaines Posts: 12,132, Reputation: 1307
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    #5

    May 16, 2016, 02:02 PM
    Here's the math laid out for you:

    If you had gotten your asking price of $191K you would have netted $191K minus 6% commission = $179,540. But under this deal you are netting $190K minus (6% commission less 1,000)= $179,600. You are coming out $60 better off with this deal that what you originally asked for!
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
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    #6

    May 16, 2016, 02:12 PM
    OOPS I really, really meant to do the math! Thanks!
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,304, Reputation: 7692
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    #7

    May 16, 2016, 04:08 PM
    It is like the seller is offering 191, merely the agents are going to be paying the additional 1000.

    The commission is the commission. You are looking only at the selling price.
    And if they are not taking commission out of the 1000 they are giving,
    You are ahead.

    It is exactly as if the buyer was offering 191, instead of 190.

    So you are getting your asking price of 191, as you asked for.
    catonsville's Avatar
    catonsville Posts: 894, Reputation: 91
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    #8

    May 17, 2016, 07:21 AM
    Well, back to square one. Just got off phone about 15 minutes ago and the lady just lost her job yesterday. This is the second blast you know where. Two days before settlement, the wife would not sign the final loan papers, they lost earnest money. Feel sorry for the lady, even if she finds a job tomorrow the banks will not loan her any money until she has worked at that new job for say 6 months. Told my realtor that maybe I am not supposed to sell the house. Hmmm.
    joypulv's Avatar
    joypulv Posts: 21,593, Reputation: 2941
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    #9

    May 17, 2016, 03:15 PM
    Sorry..
    catonsville's Avatar
    catonsville Posts: 894, Reputation: 91
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    #10

    May 17, 2016, 03:27 PM
    Quote Originally Posted by joypulv View Post
    Sorry..
    Right this minute, I have not extended my contract with the realtor he sent me one to extend it to June 16 and one extending it to Sep 16. Right now my kids are tossing around maybe taking over control of the house and rent it out, my only reservation is it must be long term lease not weekly even though the opportunity is very good there. Short term is more concerning for example if the agents rent it out to a biker and there winds up with 10-15 bikers there. Not anti biker as I am one, but not in my house.

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