Susannah Salesperson had buyers with whom she’d been working for months. They were all getting a little desperate – the buyers because they were buying their first home and nothing they saw that was in their price range appealed to them, and Susannah because she’d shown them every house in their price range and they were just too picky. Still, she liked them and tried very hard to find their first home. She remembered what it was like when she was buying her first home and how hard it was to let go of some of the dreams.
Then the perfect house came on the market. It had everything the buyers were looking for and it was in the perfect neighbourhood for them. Unfortunately it was priced just a little too high for the buyers. She decided to show it to them anyway; maybe they could somehow come up with more money for their down payment or maybe – just maybe – she could negotiate the price downward enough that they could afford it.
Not surprisingly, because the house had great features at a great price, there were a number of offers on the property. Susannah worked with the buyers to put together the best offer they could handle, but it was still below the listed price. Susannah knew that even though it was a great offer from her buyers point of view, it probably wasn’t going to measure up when it was put against the other offers. The only thing she could think that might sway the sellers toward her buyers’ offer was an incentive of some sort.
The time came for the offer presentation and Susannah presented her offer, pointing out how sincere her buyers were, how much they loved the house and how they considered it their dream home for their first home. Then she offered what she hoped would clinch the deal: if the selling salesperson would be willing to reduce his commission, Susannah would be willing to do the same. She really wanted these buyers to get the house.
Susannah was happy with her presentation and the incentive she was able to throw in at the end. She was a little surprised at the listing salesperson’s tight-lipped response to it, however, and left the presentation feeling like she wasn’t going to get much support for her offer.
Was Susannah right in thinking the listing salesperson wasn’t very supportive of her suggestion to lower the commission?
never, ever talk commission in front of the Seller, unless the listing agent mentions it, or the Seller.
Cardinal rule!
I do not care for Susannah’s negotiation strategy. Discussing brokerage fees at the negotiation table is not allowed per RAHB rules. And from a business perspective, not wise. My rule of thumb is that I do not pay for property unless my name is going on title. Reducing brokerage fee is equivalent to buying but with no benefits of ownerahsip.
Of course the listing agent was not supportive for her to lower the commission
What part of no discussing your commission in front of a seller does she not understand?? Too many people offer things that do not belong to them. The seller had a contract with the listing agent. It is not up to Susannah to negotiate the selling broker’s commission. She can offer her own – to the listing sales rep, before the presentation, she can ask the listing sales rep before the presentation if he/she would be willing to help but in no way shape or form, do any of this during an offer presentation in front of Seller’s.