Realtor Commission Rates (business, quality, agent)

[George Chong]

Originally Posted by s9tiller

I recently had a realtor quote me 10% to list my property because it had over 5 acres. They indicated that this was the practice of all Remax offices and that many other realtors are going to this rate. What from what I see, the rates are still 6%-7% and if it means the sale they most are willing to cut the commission to get the job done. Am I out of touch with reality to feel that 10% is too high. I have 16 acres, a fully develope horse property with all the bells and whistles plus many extras in the house, remote controlled entry gates , a detached shop and a fully enclosed, insulated dog kennel. I would appreciate your comments. S9tiller@aol.com

Please see Norman's answer in a post above yours.

It is not a practice of all ReMax offices as that would be collusion and that is illegal. All real estate commissions are negotiable.

[chaotix]

Originally Posted by s9tiller

I recently had a realtor quote me 10% to list my property because it had over 5 acres. They indicated that this was the practice of all Remax offices and that many other realtors are going to this rate. What from what I see, the rates are still 6%-7% and if it means the sale they most are willing to cut the commission to get the job done. Am I out of touch with reality to feel that 10% is too high. I have 16 acres, a fully develope horse property with all the bells and whistles plus many extras in the house, remote controlled entry gates , a detached shop and a fully enclosed, insulated dog kennel. I would appreciate your comments. S9tiller@aol.com

Get a second, third, fourth commission quote from different realtor companies, the normal commission is 6% and that too is negotiable as the current housing market and unemployment are in dire straits.

[DADO2BIG]

Originally Posted by blackrabbit

Realtors hold very little value in GA unless you are tying to sell a house in an out of town new build neighbourhood where there is lots of competition, everything is the same and they may be able to snag some one relocating. It is not a skilled profession no matter how many times people will try and convince you it is. All you need is to use zillow or similar to sell and avoid their rip off comissions if you have patience and a few hours spare time.

7% is a joke or are people seriously trying to say that a sign in the front yard and advice to put in a new kitchen and then drop your price 3 months later is worth 7%? Everyone else is cutting rates in this lousy economy but I guess realtors are immune even though there is over 1 realtor for evey house listed in most states.....................

WOW. I hope you never have to realize what it means to have a good agent by having things done yourself and things go down. This is same like saying: Why would I pay a good mechanic when I can fix it myself. There is lot more to it than just hanging a sign.

[Bobdreamz]

Originally Posted by s9tiller

I recently had a realtor quote me 10% to list my property because it had over 5 acres. They indicated that this was the practice of all Remax offices and that many other realtors are going to this rate. What from what I see, the rates are still 6%-7% and if it means the sale they most are willing to cut the commission to get the job done. Am I out of touch with reality to feel that 10% is too high. I have 16 acres, a fully develope horse property with all the bells and whistles plus many extras in the house, remote controlled entry gates , a detached shop and a fully enclosed, insulated dog kennel. I would appreciate your comments. S9tiller@aol.com

This is normal for undeveloped land.

[dblackga]

Originally Posted by blackrabbit

7% is a joke or are people seriously trying to say that a sign in the front yard and advice to put in a new kitchen and then drop your price 3 months later is worth 7%? Everyone else is cutting rates in this lousy economy but I guess realtors are immune even though there is over 1 realtor for evey house listed in most states.....................

I chuckle/sigh every time I hear the old "put a sign in the front yard" refrain. If you're priced right in the first place, 3 months on the market in THIS market probably isn't going to happen. Now, what is the right price? Well, that's always the question, isn't it? :-) Are you really going to go with Zillow as your expert - Zillow, who has an error rate of approximately 17-23% in Atlanta? Most of the good agents have a sales price to listing price ratio between 95-99%.

It is my understanding that the real estate test here in Georgia has a less than 75% first-time pass rate. Several people who were taking it when I took it were taking it for the 2nd and 3rd time. And that's just to get the license -- then there's 36 hours every 4 years of CE just to KEEP the license.

Anyway, I'll just throw this in here, not because it's going to change your mind, but because it doesn't hurt to remind people that Realtors are more than just glorified sign installers:

[travbo]

I think people need to think about buyer's commission vs. seller's commission. 6% is a standard full commission fee. Typically a listing agent on a home is going to stick to 3% commission on that side of the transaction unless the market is strong and the agent knows little work will be involved or needed to close. Of course, the home price may also effect a listing agents willingness to negotiate.

On the flip side is the buyer's agent. A buying agent may be willing to take a 2% commission on a property if they have also been working with the same client on an additional property as the selling agent.

These types of scenarios are common and in different situations a full commission fee could be as low as 4%.

The best situation a buyer can put themselves in when it comes to negotiating commission fees on a home purchase is that they also own a home that they are selling in a hot area. In addition, working with a single agent for 2 home transactions.

[Go Blue 99]

Originally Posted by travbo

On the flip side is the buyer's agent. A buying agent may be willing to take a 2% commission on a property if they have also been working with the same client on an additional property as the selling agent.

These types of scenarios are common and in different situations a full commission fee could be as low as 4%.

The best situation a buyer can put themselves in when it comes to negotiating commission fees on a home purchase is that they also own a home that they are selling in a hot area. In addition, working with a single agent for 2 home transactions.

When people trade up or down in house, do they typically use the same agent as their seller and buyer agent? Is there any disadvantage to using the same person to handle both transactions?

[AtlantaMove]

Originally Posted by Go Blue 99

When people trade up or down in house, do they typically use the same agent as their seller and buyer agent? Is there any disadvantage to using the same person to handle both transactions?

Not necessarily. Buyer and seller agents will move on if their agent hasn't kept in touch.

As far as the advantages and disadvantages go, some agents will consider concessions in the buying transaction when the owner who just sold with that agent uses that same agent to buy another home.

Another benefit, of course, is privacy. Your existing agent may already know about your drunk uncle that shows up unannounced. You don't want to have to keep sharing that news all over town.

Every transaction is different and this certainly worth some negotiation.

[arjay57]

Is 6% still the going rate for residential real estate commissions in the ATL?

I'm not interested in beating anybody down or getting to some rock bottom figure where the realtor is unhappy with the arrangement, but if it's considered negotiable I'd like to talk about it.

Do people ever do a sliding scale? I can easily see 6% on a $250K property, but say it's a property that will list for 10 times that. It seems like there would be some economies of scale.

[Raleigh_ATL]

Rates are always negotiable, but negotiating often get you a poor quality agent. You're better off doing business with a REALTOR that uses a sliding scale commission structure.