Looking for some input as to what other agents feelings are regarding uneven commission splits. I recently had a listing agreement with a 6% commission and advertised at 2.5% split on MLS. It is approved at 6% and sent HUD over to buyer and agent is making a fuss because he feels this is unfair. Mind you its only a 25k property but just curious as what other agents opinions are as he is claiming that I am being unethical.
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Yes it was 2.5 in MLS and no where was it mentioned the split would be 50/50 nor was the coop agreement written up that way.
If that's would you put in my opinion you only owe 2.5% to the Buyer's Agent regardless if the Bank paid 6% total.
At least in Illinois, all MLS disclosures that are short sales state clearly that commission is subject to lender approval. Smart agents go further and state that any commission reduction is shared 50/50. The split is disclosed on MLS, so if I say the split is 2.5%, and I earn 4% after your 2.5%, too bad.
Well I just got a little smarter....I dont make any mention to 50/50 split on anything but I will make sure that I do now if reduced.
Mike. I'm completely with you. Allowing the co-broke to be reduced after it is posted in the MLS is foolishness and cheapens the MLS. Co-broker should be guaranteed. PERIOD.
Offer a fair co-broke and pay it regardless of what the lender may or may not agree to. And buyers agent need to be working under an agreement where their buyer guarantees them a certain amount.
I had a lender reduce the total commission to 3% once. I honored the 2.75 co-broke that was offered. This was a 40k transaction that took me almost a year to close. My share of the commission was $100. However, the seller paid me on a prom note and was happy to do so.
I have NEVER reduced what I advertised in the MLS. The comments this agent, Im sorry "broker" made were pretty much insulting. At the end of the day I really dont care what he thinks but just wanted to get others opinions. Thank you for the feedback!
Hi Mike. Let's be a little careful talking about commission splits. I do not split commission 50/50 either. The co-broke in the MLS is what we pay. If the agent doesn't like it....well.....who cares.
Thanks everyone for your feedback. What a joke. Normally I would have just split 50/50 even though not advertised if was higher but this agents comments were downright insulting so he is not getting another nickel of the whole $118 difference in commission out of pure principle.
I agreed with all the response above. What you get should not be of any concern with the buyer's agent especially if you are getting what was promised in the MLS.. I never put 50/50 .. I put 2.5% and they get that even if it was reduced.. that's it..no more no less. In one closing the buyer's agent was mad that he is not getting 50% of the total commission, I reminded him that he is getting what was in the MLS....
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