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Old 03-29-2014, 09:16 PM
 
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Hi folks,

I'm wondering what the average buyer/seller agent rates are here? Is it 5 or 6%?
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Old 03-31-2014, 01:25 AM
 
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Yeah I worked few years in real estate and average commission rate is near by 5 or 6%.But you can negotiate also.
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Old 04-06-2014, 01:57 PM
 
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It ranges by market obviously, but in competitive markets like California, listing agents have been offering commissions way below 6% as some properties pretty much sell themselves after one showing. I've seen some even less than 5%. Are you a seller trying to get a good data point to negotiate? Or are you an new-ish agent in the market trying to determine your rates?
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Old 04-06-2014, 04:04 PM
 
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For comparison sake, in NYC it is generally 3% by agents and 4% by top brokers getting the listings themselves.

Here in california, it depends on the market. If the sale price is over a million dollars, it is often negotiated down to as low as 1% as the sellers themselves are successful business people before they sign an exclusive listing agreement! =D

For land and mobile homes, brokers go for 10%.

For median priced regular sales, brokers expect 6% and the saavy seller will negotiate that down to 5% or even 4% depending on their situation.

If you are an agent working for a broker with a commission split, it's important to get a lower commission rate approved by your employing broker in California if your seller won't sign at the full expected commission rate (usually 6%). The way I see it though, 3% is better than letting another agent get the listing!

The general custom is to go for 6% but in real estate, everything is negotiable and it is customary in recent years for agents/brokers to offer their seller half of their commission in order to get the listing and/or a sale below the asking.

Bottom line is the commission rate tends to go down as the price goes up. Take for example the commission for a $20 MILLION dollar luxury estate in Malibu or Beverly Hillls... if the listing agent/broker got the seller to sign for 5% commission, that agent would make A MILLION DOLLARS if they sell it to a principal!

Realistically, saavy sellers will weigh how much the agent/broker is spending in time and advertising, against the dollar amount of the commission based on rate.

Its also a good idea in my opinion for a saavy seller to negotiate in writing up the listing agreement, that full commission (ie 6%) will be paid if the sale closes within the first month, and that the commission drops 1% every month more. So if the house isn't sold within 3 months, and the same agent is under pressure to perform their job (sell!) before their commission rate drops even further. This is a great way to keep an agent/broker showing since most tend to get the listing and just leave it up to the MLS to sell unless there is an initiative to sell swiftly!!

Keep in mind, commission is shown on the MLS and selling agents might ignore showing a low commission like 2-3% in CA!
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Old 04-08-2014, 10:55 PM
 
30 posts, read 53,932 times
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Much thanks for all of the replies. Sorry for the delayed response. I was just wondering because I'm house hunting and working sans agent. Although, I recently found a rebating agent in the Bay Area who is kicking back 2.1% of the 3% agent fee!
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Old 04-09-2014, 09:40 PM
 
4,749 posts, read 3,597,801 times
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I'd rather just work with a good realtor and pay the commission, which is easily negotiated down to 5 percent these days. The commission gets split several ways. I know the temptation is to save the cash, but unless you are really knowledgeable about what you're doing, it's probably better to just pay the commission. But the key is to get a *good* realtor - make sure it's money well spent. Get references. Treat it like you're hiring an employee, which you are.
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