Oh boy, is that the next one that is coming down the pipe? I hope someone puts a major clog in that pipe before it hits me. Never had anyone ask that. But I think I am preparing my speech right now.

" I am not allowed to split my commission with anyone but another broker..." The law is the law, enough said.

I agree with Mary,

In my state that is illegal to split my commission with anyone who isn't a lic. agent.

It makes no sense for an agent or a broker for that matter to shoot themselves in their own foot! The only person that would do that is not skillful in handling the gun. Am I going to have to clear off some time to kick butts and take names now?  :) We will just have to hold our ground. Thanks for the heads up, at least now if I am asked I won't sit there with my mouth hanging open, I have heard it before......

On the Lighter side a good response would be:

"Will they split the difference between List and Selling price I negotiate for them?"

Ethics, morals and principals within real estate are not un-bundled services and are not for sale. Expertise, skill and drive is what a licensed real estate individual should be hired for.

Good for you, let them go be someone elses headache.  

Those are the types that will drive you out of your mind .  Let them deal with those agents who does those kind of things , they deserve each other.  

I wonder who would come out on top in that ???? hehe,,,, I bet it would not be the buyer.

Good! Let them go elswhere. When you let go of customers/clients like that, your business is stress free.

Nothing new, under the sun.

Everywhere that commission SPLITS with non-licensed persons is illegal, you will find that Commission REBATES are legal.

Everywhere you find people who cannot sell on value added service you will find people selling on price.

Everywhere you find home prices high enough, you will find Realtors willing to work for less than the 'usual' pay.

Ask such a caller this....  Do you think an agent who gives away his own money like this is going to take good care of yours?

Then ask.... What's more important to you.  Saving $20,000 on the price or the house, or getting $3000 in a commission rebate?

Good agents earn their keep by providing good service.  Agents who have no real ability to bring value to the table have to buy their business... and also will be motivated to keep that commission as high as possible by keeping the price as high as possible.

I prefer to add value to my client's lives instead of stack the deck against them in this way....

Or you could say -- yes, I will split my 14% commission with your parents.

M

Russel, I was totally appalled by your story.  I can't believe people out there are willing to jeopardize their business like that.  I think I would have ended the conversation right after he asked you if you would split the commission with his parents. The rest of the conversation would of wasted my time, and my time is valuable.  I commend you on your ethics and morals.  

Same here..... I friend of mine ( we were very close) was looking to buy a land and build a million dollar house. He asked me to split my commision with him! I refused to work on a deal and told him to find another agent.

You did good Russell!

Anastasia!

As we all know commission is negotiable. For sellers it makes sense the more they earn the more we earn. But for buyers the more they pay the more we earn. There is an agent in Florida who offers buyers a rebate based on how much he negotiates off the List price/versa sales price. Interesting idea!

I had a listing last year - shown by coop agent - buyer made offer thru coop agent- we turned offer down. Buyer came to me directly said he dumped his agent wanted us to reduce price by her commission - we turned him down and told him if he didn't like his agent we would do the contract but her company was getting paid the full coop fee. He went back and negotiated with her company - they gave hime 50% - the same a newbie agent would get - if he had his license. I guess for some it depends on how big the deal is?

It really is disgusting!  In fact, I have noticed in the last couple of years that the gross commissions have fallen.  Mostly due, I guess, to discount (not full service) brokers and new (intimidated) agents.  Yes, commission is negotiable but that does not mean we should lose our dignity and honor in process.  We too like living and not just surviving.

I'm with you Mike, "yes, I will split my 14% commission with your parents."

I lost a client for this very reason back in December.  After spending months helping them repair their credit, the wife called and said that they were going with the husband's co-worker who was a licensed agent BEEE-CAUSE....(drum roll please)...he was splitting the commission with them.  I wished them well, and needless to say that it is now almost April and every contract that this "agent" has written has been rejected.  Hmmm...

Fortunately this isn't prevalant in my area yet - but it will be. There are more than a few companies whose business models rely on reduced commissions and rebates both on the listing and purchase side. Most MLS's will post Exclusive Agency Listings to public web sites including Realtor.com. "So for $499 you too, can get on Realtor.com and pay a co-op if you feel like it. Or not." Many of those same companies offer rebates when "representing" their buyers. Our MLS in southeast MI, Realcomp, is in litigation with the FTC now for refusing. The rest of you need to get your MLS's to take a similar stance. The more successful these agents are at giving away their services on the listing side, the more it will happen on the buyer side. Then we won't have a choice. Rebate or get another job. And I personally don't have any job skills :)

Well, in NJ...it's illegal.  I haven't had anyone bring this subject up.  And even if they did, I just tell them that I don't participate in illegal activities.

Hi My Office is in California and about 50 miles from Sacramento for a lot of commuters.  A lot of Sacramento agents send customers here and we show them property not knowing that they were sent by another agent or relative even when we ask them if they have an agent...  The next thing we know we are getting an offer from Sacramento Agents that have never shown the homes. This has become a real problem here.  I call them back and say I assume I am representing both parties since you don't know what the home looks like and if there is a problem with the home.  I scare them into getting off their """ and seeing the home before I will present the offer or I am writing in agency the selling office has never viewed the property.  Then I tell them their Broker will be getting a copy of this..  Gayle