Is 6% commission too high?

[DavidS827]

Originally Posted by shoboo75

Quick question...

If the realtor belongs to a company like Remax or Century, how much of the 3% will he get? Does the company keep most of it? If he only gets half of the 3% how much can he possible share?!

Thanks!

It depends on the realtor and his/her experience. Some realtors are on a 50/50 split, some pay a flat fee and keep 100%. Then there are those that fall somewhere in between. I think a lot of people would be surprised how much of that 3% many realtors don't take home when you factor in desk/office fees, sign feees, splits and all of the other misc fees that many brokers nickle and dime them with.

[Mark Sr.]

Originally Posted by shoboo75

Quick question...

If the realtor belongs to a company like Remax or Century, how much of the 3% will he get? Does the company keep most of it? If he only gets half of the 3% how much can he possible share?!

Thanks!

Shoboo,

In a RE/MAX scenario the agent receives most, if not all, of the commission side. For the franchise owner / broker to survive and provide an office, the RE/MAX name, etc., etc., each agent pays a hefty monthly fee to the company. This is a set amount, which usually increases each year, is paid on the first of each month regardless of what the agent has brought in as commissions.

In other words a RE/MAX type agent cannot afford to be part time.

-Mark

[videobroker]

For 6% you get a sign, flyers, open houses, follow up phone calls while 85% of listings agents wait for that one call from another agent who actually produces the buyer for your listing.6% is too high and is going the way of the dinosaur, just a matter of time. With people foreclosing left and right (41,000 in Michigan alone) home owners are going to revert to flat fee deals or fsboville.

[Mark Sr.]

Originally Posted by videobroker

For 6% you get a sign, flyers, open houses, follow up phone calls while 85% of listings agents wait for that one call from another agent who actually produces the buyer for your listing.6% is too high and is going the way of the dinosaur, just a matter of time. With people foreclosing left and right (41,000 in Michigan alone) home owners are going to revert to flat fee deals or fsboville.

Maybe so videobroker,

I tend to think that a homeowner's amount of debt or financial position has nothing to do with what it takes to effectively market and sell their home.

But then again I am still waiting for the internet to replace the real estate agent as I often heard being predicted 10-12 years ago.

I will take my third listing of 2008 next week, each are at six percent, and my sellers will get what they pay for.

I do predict that the real estate agent "mega team" will go the way of the dinosaur (a high profile, high volume listing agent and 3-10 "buyer's agents", client care specialists, etc.) Unique service, market knowledge, and professionalism will be paramount. And when a seller calls "their agent", they are going to want their agent to answer the phone, not Debbie #1 or #2.

I have nothing against big teams, but they are just not my style. I think that they will be or are scaling way back. JMHO

-Mark

[vanyali]

No one pays 6% anymore. You can't get much below 4%, because your listing agent has to give 3% to the buyer's agent, but I think that log jam will break too sooner or later. I can give you a website for a realtor with decades of experience who will list your place for way less than 6% if you msg me.