Thread: Realtor Discount Request

I had a (new) realtor call me for her financially strapped first time home buyer. She (of course) was looking out for their best interest. In trying to get them the best price she asked if I had any coupons or discounts available. After saying no she stated that her buyer doesn't have much extra money but she really wants them to have a home inspection. I said "In that case, I would give a discount because I wanted to make sure that they had a thorough inspection." (and didn't get screwed by one of the local yo-yo's that steal so much of my business).

I asked her how much of her commission her broker was allowing her to discount to be able to get her client a lower mortgage while still getting the seller the same price. Of course she wasn't discounting anything. There was no answer to my next question and statement: "If they are so fincancially strapped and need a discount, couldn't you save them more due to less commission than I could by giving a $25-$50 discount? ....... If you can't discount you services, neither can I."

Of course, I didn't get the inspection.

Similar Threads:

• Realtor gets much-needed lesson in disclosure - Upstate House
• Prayer Request
• BRIAN H-- new forum request
• garage door reversing informationm - by request

Of course the buyers agent isn't getting money from the buyer, it's coming from the seller's proceeds.

I have also asked the Realtor why, if they are so strapped for money, are they thinking of buying a house? How are they going to afford to set money away each month for maintenance? Should they really being buying a house now? If they can't afford $350 (or maybe $200 for a low bid guy) for a home inspection, they have no business buying a house.

I will give discounts once in a while, but most of the time I don't. But, because I do run the show, I could do it for free if I wanted to - and have.
JF

I give discounts if I feel like it (ie - repeat customers, friends). If somebody asks for one, forget it. When somebody keeps pressing and won't let up, "smart-ass Nick" makes a cameo: "Ok, I'll give you a discount. What part of the house would you like me to leave out of the inspection? Roof? Electrical? Heating?" I find this type of technique to be a very effective cheapskate repellant.

A handful of times I have agreed to discount my inspection fee if the Realtor would discount his commission a similar percentage. (Ex., Realtor asks me to reduce my $250 fee to $200. I say, "OK, if you'll cut your commission by 20%.) So far I have not had any takers.

[QUOTE=Jack Feldmann;9684]Of course the buyers agent isn't getting money from the buyer, it's coming from the seller's proceeds.

I do realize that the seller is the one paying the agents, but if the seller had to pay less comission, the buyer could ofer a lower number while the seller would still walk away with the same amount.
EXAMPLE: in my area 7% is standard realtor fees. A $100,000 home would net $93,000 after the realtor fees. If the realtors aggreed to split a 6% comission the price could be reduced to $99,000 and the seller would actually net more ($93,060). This would also slightly reduce the buyers' closing fees since some of those are based on a percentage of the sale/financed amount.

I do realize that the 1,000 broken down over 30 years would make a negligable difference in the payment, but the buyer would feel better.