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Updated over 1 year ago,
Commission on Concessions?
I was in a meeting today with fellow REALTORS® and the discussion moved to "Why do some agents put in that commission will not be paid on concessions?"
There was a bit of back and forth and I was not quite grasping the other side so I figured I would throw it out there for fellow agents to chime in.
MY STANCE: My seller should not pay commissions on monies used to assist the buyer in purchasing.
REASONING: We earn our commission (at least in NY) when 4 items are reached. We produce a "Ready, Willing and Able buyer and provide documentation to all relevant parties"
STIPULATION: Yes I agree there are plenty of other things to be discussed,
ARGUMENT: As a buyers agent, you have not produced an "Able" buyer. You have produced a "willing" and "ready" buyer. But to get to able your client is asking for assistance. Not only are you asking for assistance to get to "able" you are asking for payment to get to "able". Why should my seller pay commissions on the difference?
Figured it would be a good topic to discuss among agents.
- Mike Cumbie