What is average commission rate? (Nassau: flat fee, for sale by owner, real estate)

[sellmyhouse]

I am now in the market for a new agent (Halleluyah!) I am selling a 1 bedroom co-op apartment. What is the average commission rate? How much negotiation is there? Does anyone have any strategies?

[NY652]

New agent? What was wrong with the last one and why do you think the next one will be any better? Go for sale by owner and skip the hassles. You have to do your homework though and be prepared for the persistant, harassing agents who will beat down the path to your door - - but you can do it - lots of people have.

[birdrgal]

I was told by a friend who listed her house last month that most full-service realtors (not places like Foxton or Help-U-Sell) are charging 4% commission now on Long Island. Usually split 50/50 between the listing brokerage and the selling brokerage (if different).

The better (more high-end) full service realtors like Daniel Gale/Sothebys are charging 5%.

When I bought my house almost 2 years ago, the average commission on LI was 6% (split 4%/2%).

[NY652]

See, the part I don't get is how can they call themselves "full-service" realtors when they do not handle contracts as other realtors do in the rest of the country. Long Island needs to get with the program and join the 21st century. My friends in MI where shocked at this revelation.

[wardlwag]

My broker told me to raise my commission rate from 4% to 5% so that brokers have a greater incentive to show my house...can you imagine? as if $28,000 is not enough...I hate all brokers, when my listing is up I will reduce my price and go FSBO

[NY652]

That's what I want to hear ! More FSBO's ! Yes - we ARE capable of doing this on our own.

[momix5]

I think I have said this before in NY you need an attorney , and of course a home inspector or at the very least a termite inspection so why would people not use fsbo to purchase, because they will be able to probably get a nice house for a lot less.

[Long Island Mermaid]

Dear Thread,
I am a realtor living and working in Suffolk (sometime Nassau-grew up there) I believe in a 5% commission - 3% to the listing side and 2% for the selling (sub) agent. The listing agent should make more $ to cover the expense of open houses and marketing. If you go with a 4%- 2% to Listing side and 2% to sub agent, the listing agent could sell someone else's house and make the same $ w/o all the expense or responsibility-make sense? Each side is split by 2 people as there are usually 4 people splitting the total commission - usually 2 agents and 2 brokers. I have had agents bring multiple offers for $592k-$615k on one house and say I and my seller are crazy not to take the offer in todays market. We held out and closed at $642k. Thats why you should not neccessarily go w/the lowest commission-it could cost you $50k literally even in this market. I can give you stories ranging from Setauket to Rockville center selling higher- anywhere from an extra $25k-80k over what the local agents said was possible.
There are 3% and 4% but they could cost you $Big.
Feel free to ask more Q's if you like

[birdrgal]

Originally Posted by NY652

See, the part I don't get is how can they call themselves "full-service" realtors when they do not handle contracts as other realtors do in the rest of the country. Long Island needs to get with the program and join the 21st century. My friends in MI where shocked at this revelation.

In the NY Metro area "full service" has never meant handling any legal matters. Its a regional thing that, like it or not, will never change. Attorneys aren't going to give up the steady income from doing closings!

Closing fees used to be 1% of the purchase price, so if you bought a house for say 500K your lawyer would charge $5K, if you bought for 200K it would be $2K, etc. That was how it worked in the 60s and 70s, even into the early 80s. Now its changed to where its a flat fee (usually; some still charge by the hour) that doesn't depend on house price. The last 2 houses I bought, my lawyer charged $1000 for each closing.

Full service realtors are supposed to do good marketing (get professional photos taken, detailed MLS listing, Newsday ad, Real Estate Book ad, in-house promos, handouts/fliers, network with relo companies, have a brokers open house with lunch, public open house if wanted, maybe even a full color brochure if its high end, prequalifying everyone before they look at the house, being there for all showings, and being in the loop for all pre and post contract/closing situations). At lesat that's what my realtor did. Those discount realtors basically take a few amateurish pictures and stick the thing on MLS and plop a sign on your lawn....

[sellmyhouse]

The last agent didn't do anything except put the listing on MLS. We met with a new agent, she sounded good. We are going to sign for a shorter contract (we learned our lesson before). The commission is 4% if she sells it herself and 5% if someone else sells it. She sells 90% of her listings. I tried selling it on my own before but it didn't work. We really want to move so we are going to try this agent for a bit.