Multiple Offers and Not Reducing Commissions


I am the Listing Agent and I am hosting a multiple offer bidding war. One of the Buyer’s agents wants to throw in his commission to help his client Buyer (a family member). The Listing says “2.5% to co-operating brokerages”.

How should this be handled?


When you take a listing and create a bidding war to the benefit of the Seller, stick with the rules that you established. You offered 2.5% to get the other agents in the door. All but one person will be going home without a paycheck.

The high bid is there because there are so many bids. This conversation needs to take place with the Seller at the time of Listing. You need to discuss the fact that somebody might want to have you and your Seller alter the Listing agreement to offer less by way of a co-operating commission. Don’t buy into this! That doesn’t need to take place. Your Seller doesn’t have to alter the co-operating commission.

If there’s no alteration, then no one else needs to be told. You don’t have to tell all the other agents that one person has “thrown in” their commission. This is really a bully commission deal. Don’t get bullied, and don’t let your Seller get bullied. And, don’t be calling all the other agents at 11:30 pm and telling them about this. Simply say to the requesting agent that the total commission will remain the same; if they choose not to receive it, then you will keep it.

Now, this makes it fair for everyone. No one is dealing with 30 cent dollars. Let the other agent compete,

  • pay his Brokerage their share,
  • pay the HST as required,
  • report and declare the agent’s portion as income,
  • pay the appropriate income tax, and
  • donate, give, or remit whatever amount they may choose to their client.

That’s their business, not yours. They are really asking you to “monkey with” the other agents who have been kind enough to bring you Offers.

Now, that’s today. What about next week? Will those same agents come to your next bidding war, or will they simply conclude that you might get bullied and go somewhere else instead?

Having a strong track record, and not bending gets you the most bids from the most number of agents, which, of course, is why your Seller is getting the highest price, and not agreeing to this nonsense.

Brian Madigan LL.B., Broker

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