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Old 07-14-2006, 12:51 PM
 
164 posts, read 219,320 times
Reputation: 72
Default commission

I've never heard of 7% either. I don't think that's a typical commission rate anywhere - certainly not in California. The one exception is the seller's agent who recommends 7% with her receiving only 3% and the buyer's agent receiving 4%- gets the buyer's agents very excited and everybody wants to show your house. But that's usually a plan "b" after your house has been on the market a while and you need to generate new interest.

If that's the plan this agent has for you, consider instead a bonus to the buyer's agent. With a bonus, the buyer's agent gets the money directly without splitting it with her broker, which means you can offer less. For example, say you are selling your house for $200K and you set the commission at 6% ($12K) with your agent getting 3% (6K) and the buyer's agent getting 3%. If your house hasn't sold in a few months, you have your agent put in the "agent only" remarks (doesn't show up on the public MLS) that you will pay a bonus to the buyer's agent who brings an acceptable offer. While commission is split between agents and brokers (agents get half of the 3% ($3K)), the bonus goes totally to the agent. Maybe the bonus is only $500. But that looks pretty good to a buyer's agent in a slow market, and it's less than the 7% commission ($14K) your agent is currently recommending. It is even better if you can get commission set at 5 or 5 1/2% with the buyer's agent getting the full 3% plus her special bonus.

That's what we are doing. Selling at $800K with a commission of 5 1/2% - our agent gets 2 1/2 and the buyer's agent gets full 3%. We've added a $5,000 bonus to the buyer's agent who brings an acceptable offer. This offer is hidden in the "agent only" remarks so neither the public nor the buyer knows about it. It will only show up on our seller's closing statement. Maybe some people think that's "dirty pool," but at this price range, most buyers are pretty savvy and no agent is going to steamroll them into our house. Think it's gotten us showings? Guess again! 3 showings in 2 months. Frustrating!!!!

Connie
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Old 07-14-2006, 12:59 PM
 
Location: Waxhaw, NC
293 posts, read 603,612 times
Reputation: 61
Quote:
Originally Posted by mmdj43
Been there, done that. There's no rule set in stone that you have to be there, but I'm going to tell you that you will feel uncomfortable being there when buyers are looking at your home. Plus the buyers will be more reluctant to say much about the house because you're there.

I never stayed home for one and I put my cats in their carrier in our sunroom to keep them out of the way. If you do leave while the open house is going on, you may be curious enough to drive past your home every once in a while to see how many cars are parked in front of your home. We did that just because we were nosy ourselves.

But get ready, you may just have your entire block coming to your open house.
I know, I feel uncomfortable being home when I have a scheduled appointment. As far as my neighbors are concerned, (by the way, I nicknamed my block Wisteria Lane) I don't think they would stoop that low to come into my house. There was an open house around the block last week & I don't think the neighbors went. (even though their realtor sent invitations to it).
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Old 07-14-2006, 01:21 PM
 
483 posts, read 1,059,848 times
Reputation: 178
Quote:
Originally Posted by slvrcts04
I don't think they would stoop that low to come into my house. There was an open house around the block last week & I don't think the neighbors went. (even though their realtor sent invitations to it).
Oh guess again. If they know that you are not home, they may get the curiosity bug in them. I'm not saying that they definitely will, I'm just saying don't be surprised if they do. When I had mine, my agent told me that several neighbors came over. If you don't, then you're lucky. Then that would mean that my block has more nosy neighbors than yours. LOL
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Old 07-14-2006, 02:38 PM
 
1,677 posts, read 2,774,153 times
Reputation: 1312
Quote:
Originally Posted by Samohtal
This is interesting reading ... especially since I'm trying to sell my first house - so I'm a little clueless on this one.

I just met with a woman that seems like a good agent, but when she hit me with her commission ... which was 7%. I asked if that was more than normal, that I thought 6% was the most common and I'd even seen 5% out there. She held strong to her quote of 7% and she told me that if I saw an agent quoting me 6% to sell my house, she wonders what they're not giving me that she is at 7%. I gave her three different opportunities to tell me her rate was negotiable, but she didn't bite.

I know this is all my choice, but I'm curious what you all that have more experience at this thing can tell me. I'm in a suburb of Buffalo (NY) and my house will list for right around $200K ... so we're obviously talking about a $2k difference between 7% and 6% ... let alone anything lower. So far, she's the only agent I've met with - but that's why I want to hear what you all have to say. If the standard rate is really 7% in my area - I don't want to be forced to be a bottom feeder to find an agent that will charge lower and then pay for that 1% with a lesser representation and maybe a lower sales price or maybe a longer time on market, etc.

Thanks!
Sounds like that agent is behind on their Mercedes payment.
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Old 07-14-2006, 03:25 PM
 
Location: Indian Trail, NC
295 posts, read 843,550 times
Reputation: 125
Thanks all, for the feedback. I guess I'll have to pay attention to other proposals from other realtors, too.

We'll see, but its interesting trying to find a realtor without really knowing beforehand who is good. I just signed up at Homegain.com to have it try and help me find a realtor, but it has occured to me that maybe the only realtors that would sign up (and probably pay) for a website like that are the ones that need the help finding customers.

The word-of-mouth thing isn't working for me to find a realtor in this area. Many of my friends and family have either already moved south, have lived in their same house for years, or are renting.
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Old 07-14-2006, 09:57 PM
 
2,560 posts, read 4,067,582 times
Reputation: 1008
Quote:
Originally Posted by slvrcts04
I'm having my first open house tomorrow . Just curious, do most homeowners stay during the open house? We are planning on leaving for 2 hrs. & also taking the dog. I can't deal with nosey neighbors!!
We went through 13 open houses, cleaning and leaving for 3 or 4 hours, our Sundays were no fun. I liked when we would come back and 1 person would come by. We stopped doing them as they wern't producing anything. The 2 people that were interested came by with their realtor on their own. Make sure all your jewelery and any important papers etc are safely tucked away. Good luck!
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Old 07-14-2006, 10:17 PM
 
169 posts, read 370,546 times
Reputation: 64
nascarnancy, how are you doing on selling your house??
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Old 07-14-2006, 10:21 PM
 
2,560 posts, read 4,067,582 times
Reputation: 1008
Quote:
Originally Posted by momof2boys
nascarnancy, how are you doing on selling your house??
Well, we had a lady come by this last Wed night and tomorrow a 2nd walk through for a couple who lived here in the area 2 years ago, relocated to Texas and are coming back. She came through with her realtor about 2 weeks ago, so now hubby is coming through to check it out. I'll keep you posted, thanks for asking.
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Old 07-14-2006, 10:27 PM
 
169 posts, read 370,546 times
Reputation: 64
Quote:
Originally Posted by nascarnancy
Well, we had a lady come by this last Wed night and tomorrow a 2nd walk through for a couple who lived here in the area 2 years ago, relocated to Texas and are coming back. She came through with her realtor about 2 weeks ago, so now hubby is coming through to check it out. I'll keep you posted, thanks for asking.

That sounds good, at least things are happening. It just takes that right person! It'll happen. I always say "Everything happens for a reason!" Keep us posted.
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Old 07-14-2006, 11:03 PM
 
Location: Charlotte,NC, US, North America, Earth, Alpha Quadrant,Milky Way Galaxy
3,217 posts, read 4,375,506 times
Reputation: 1536
Quote:
Originally Posted by backfist
Wanna hear some good news (and by good, I mean terrible)?

Our home has been on the market for about 3 weeks; no problem. It's a sluggish market here in the mountains of Colorado, and it'll probably take about 5 or 6 months. Well, last week, we had some of the heaviest rain we've had in years, and the flash flooding was on. Within an hour, our neighborhood was under 4 feet of water; 3 out of 4 bridges collapsed; the main entries and exits were washed out; and the highway into the neighborhood got washed out and won't be repaired for about 4 months. Oh, and all of our landscaping was washed away. The blessing is that our house is still standing.

So it looks like we won't be selling anytime soon, and Charlotte may have to remain a dream for now.
Ouch! So you're taking it off the market until some of the flood related issues are resolved? Just curious, did you make Charlotte your final selection (I know you were considering several cities). I'm glad you and the family are okay (that's a blessing)...
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