should i, if so, what ?

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  #1  
Old 02-14-12, 11:09 AM
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should i, if so, what ?

the bank accepted our offer on our new house.

1 month ago : my wife called our realtor to place the offer. or realtor said no, make it $4000 less

so i was thinking that i should give our realtor some kind of "tip".
after all, she saved me $4000

what do you guys think ?
 
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  #2  
Old 02-14-12, 11:30 AM
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Assuming that the realtor is getting a commission, I think a thank you is enough.They are being compensated through the sale for acting as your agent.
 
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Old 02-14-12, 11:30 AM
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Uhhhh no.....matter of fact heck no! They got paid for the work they did for you. If they accepted it for $4000 less...you could have offered $8000 less and waited for a counter. She "saved" you $4K....but she only lost $120 (at 3% commission). If there had been the whole negotiation thing, could have been a few more weeks of paperwork for her.

Personally, realtors are in the same rank as used car salesmen in my book. Most work purely on commission. If they rep the seller, they want to turn it quick and move on. If they rep the buyer, they want you to pay the max they think the deal can handle...and move on.

Sour grapes...you got that right. But that's a whole nother story.
 
  #4  
Old 02-14-12, 11:52 AM
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Gotta' disagree Vic. Nuthin' is lower than a used car salesman.
 
  #5  
Old 02-14-12, 12:00 PM
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I didn't say lower.....I said same...lol. Like I said...sour grapes on my part.

At least you can take a car somewhere for a second opinion...hard to do when you have a contract with a realtor.
 
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Old 02-14-12, 12:33 PM
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No tip, but remember this when it comes time to sell your house, or refer a friend to them if they need a realtor.

@Gunguy: 3% commission? Only if they are sharing it with another realtor otherwise it is 6%. And then they only get half that if they are pert of a large reality firm.
 
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Old 02-14-12, 12:49 PM
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Right TI...thats what I meant...6% total...normally the buyers and the sellers agents split that (we actually offered 7% hoping for a lot of interest). And sure, they have to divvy up with the agency to some extent.

In better times that might have meant maybe 3-4 weeks of a few hours a week for a selling agent and they bank $6-9K....and that's for only one property.

I don't have any real ill-will against my selling agent back in VA. I was working full time and trying to do a bath remodel (badly) and she came and cleaned the house completely (windows, oven, floors, tubs, etc) raked 20 bags of leaves and old mulch, planted blooming flowers, and was pretty amazing overall. She earned her paycheck. She was the wife of a regular customer of mine at HD. The rest of the sale wasn't so great.

Sorry...I'll stop my rant....if anyone wants the whole story let me know.
 
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Old 02-14-12, 02:40 PM
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Sour grapes, indeed. I sold a house back in the '80s. Agent had it for months and months, with no advertising, nothing.....and no leads. A lady colonel in the Army who was going on maneuvers the next morning came by the house at dusk wanting to see the house. I told her she needed to see my agent, but with her schedule, she begged. I reluctantly showed her the house, and as she left she said she wanted it and gave me a check for $1000 to hold it at my asking price. Needless to say the agent didn't lower his commission. Never wanted to strangle anyone else like that again in my life
 
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Old 02-14-12, 03:41 PM
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I know what you mean, when I put my place up for sale in fla the first realtor had it for 6 months and no bites. I'm not even sure they showed it. When it was time to reup, I went with a different realtor. The new realtor showed it 2-3 times in the first few weeks and then nothing. The sunday before the contract was to end they showed up wanting me to resign, I declined. The night before their last day, they called and wanted to know if they could show it, I agreed thinking it was just a last minute push - to my surprise, the couple liked it and paid the list price.

I had to pay a 10% commission because it was rural property under 50k [1991] It seemed to be the going rate but I'm not convinced any of them worked very hard to earn it.
 
  #10  
Old 02-14-12, 04:26 PM
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Do not give your agent anything extra. They did exactly what you are paying them to do.
 
  #11  
Old 02-14-12, 05:11 PM
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boy, you guys are rough, but i see your points.

here is the short story :

yes, she is getting commission, idk how much. she showed us 5(iirc) houses in about 8 weeks, pretty easy.
so, she isn't working hard for what she is getting, and that isn't much. as the sale price is pretty low.
i would have been happy paying full price, but thought i would try my luck with $2000 lower.
BUT , the thing is, she told me to offer $4000 less than that. AND SHE DIDN'T HAVE TO !
so, she actually took money out of her pocket. how many people do you think would do something like that ? around here = RARE. idk if i would.

seems to me that some kind of reward is due.
 
  #12  
Old 02-14-12, 05:48 PM
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You are wrong. I know you feel good and appreciative, but that is what her job is. To help you find the home you are looking for and to aid you in negotiations. She did what you are paying her to do. She did not go above and beyond her duty. Bake her some cookies if you really feel like you should give her something. I don't think it cost her anything. Yes, there is less commission, but she freed up her time with you guys to spend it with a new customer. She is increasing her volume of sales.
 
  #13  
Old 02-14-12, 06:03 PM
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I agree with Droo. If you don't want to give her cookies then send a $20 floral arrangement to her office, I guarantee she will love it.


My own experiences with real estate agents is completely different from what has been expressed. I invited an agent to look at my mother's house, signed the listing papers on Friday and signed the sales contract on the following Monday for $20k over the listing price. When I bought my current home the agent worked her tail off for me and when she sold my old house it took all of a week. For a housewarming gift she gave me something like $200 worth of bird feeders.
 
  #14  
Old 02-14-12, 07:04 PM
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Condo-owner, if you wanted to give some sort of reward to the agent, you might write a thank you letter to the managing broker at her agency. Give her some compliments and express your appreciation for her work, and all it will cost you is a 45 cent stamp.
 
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Old 02-15-12, 03:34 AM
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On another tangent.....when we bought our present property in the mountains, it wasn't so much the real estate agent that we were most appreciative to. My wife knew what she wanted, gave him a list, he laughed and said "everyone wants that", and gave her two listings to look at, without him leaving his chair. She looked and decided on what she wanted.
It was the Mortgage Broker we owe. She fought for the lowest rate, best terms, etc. and we were able to buy it, with or without the real estate agent. After the dust settled, she even sent us a couple of "throws" and soup mugs which we still use, 12 years later. And we are good friends to boot, afterwards.
 
  #16  
Old 02-15-12, 04:36 AM
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Count me on the side of "no". On the point of her advising to offer at lower, and she "didn't have to", thus losing a bit of commission. Let me relate that to my line of work; I do something similar at least once a week: Get a call to do a tow for a "no-start". Get there and the owner says something like, it just clicks when I turn the key, I guess it's the starter. Well, I say, could just need a jump and then you can drive it in. Really, they say. Sure, I say, let's try it. Lo and behold, just a dying battery and it jumps right off. Now I'm billing them $38 for the jump start instead of just hooking up and taking them to a garage to make $60 for a tow. Doesn't bother me in the least, I'm in a service business.

Sometimes the customer will slip me an extra 5 or 10, but I don't expect it; what I REALLY appreciate is if sometime in the future they mention me to friends/family in a positive light that could get me more business; that's worth more than the few dollar tip.
 
  #17  
Old 02-15-12, 06:49 AM
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what I REALLY appreciate is if sometime in the future they mention me to friends/family in a positive light that could get me more business; that's worth more than the few dollar tip.
My point exactly. For the good service saving you $4K, and only costing her $120 (per Gunguy's math) in return you will remember this when you hear somebody needs a realtor or will mention her name at the next friend/family get together. Word of mouth advertizing is the best kind. If she gets another house to buy/sell she will earn thousands.

I still say it is not necessary but, If you really want to do something for her, send her flowers with a card saying "Thanks you for a job well done". You will make her day/week!

On another tangent: I would like to mention I do a lot of work for a big realty offices. While it seams that they are doing very little I can tell you they are always moving. They are on the computer looking for houses, putting together paperwork, meeting with people, working with banks, mortgage companies, and title companies. They are just like any another service industry. You are not only paying for their time, but their knowledge. Trust me, I know. I always hear how electricians are so expensive because "they were only here for a day and it cost $1200 for the service change". There is a bunch that goes on behind the scenes.
 
  #18  
Old 02-15-12, 07:34 AM
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Doesn't bother me in the least, I'm in a service business.

And I bet that attitude pays off in the long run.
 
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