Reduced Seller's Broker Fee for a Relative??
Started by InkSpot
over 17 years ago
Posts: 8
Member since: Jul 2008
Discussion about
I am contemplating a bid on an apartment and am trying to figure out the commission situation for the seller. Here's what I know: The seller's sister is acting as the seller's broker. She works for one of the big firms. Would it be possible for her to wave her entire 3% commission (assuming a standard 6% commission split equally between buyer and seller brokers)? Or would her firm insist that it collect its 1.5% so that the only real saving she could pass along to her sibling is 1.5%?
hard to say. she could also collect the full commission and then split it with her brother later.
Thanks, Babsie. You are right -- I can't really know what deal they have between them after the official sale is over.
I think my main question is whether one of the large firms would even allow the sister / seller broker to waive any part of the commission, even if it was just her direct take. Any brokers out there?
My guess is the seller's sister is just trying to make a living, like everybody else, and the seller is trying to help his/her sister make that living. I wouldn't count on any discounts coming to the buyer at all due to the sibling relationship.
I would assume the big brokers won't give anyone a break esp. in this market. I suppose she could agree to just take the commission portion that goes to her employer and then waive her portion, but in this market, I wouldn't waive commission, even for a family member!!
The amount of "give" in any transaction is a function of the wishes (and clout) of the agent, and the policies of the brokerage firm. Since the firm incurs costs in the marketing of ANY property, it's unlikely they would say "don't worry about it".
And while it may be interesting to know the underpinnings of the fee structure, at the end of the day that's really the seller's and the listing agent's concern. They'll work through their own fee issues, and will either accept your price or not.
Not very likely she would collect her fee and either pass it on or split it with her brother. For one thing, that's illegal; for another, since brokers are all independent contractors, that fee is probably taxed at a rate approaching 50%.