Commission to Buying Agent? (sales, insurance, mortgage)

[nytimes703]

What % of residential home sales in this area have the buying agent receiving less than 3%? Is 2.5% to the buying agent seen more and more often versus the full 3%?

Would you have any special concerns setting it at 2.5% for a basic TH sale at around a price of $300k?

[boyd888]

Many buyer's agents collect the standard cartel fee of 3%, but then refund back .5-1% to the buyer as an incentive for working with them (same for the sellers). So they are receiving less than 3% net, but the contract was still 3%.

Your house isn't going to get shown first at 2.5%, but you won't have any issues selling it otherwise. That's a pretty cheap townhouse for the area though.

[VRE332]

Yea and that is a very good thing to remember when you list, because IMO buyers agent's will never show a home to a client they cannot make money on. Ask your agent to list it at 3.5% or higher to lure the willing, and agree for a bigger kickback.

[leavingwash]

Originally Posted by VRE332

Yea and that is a very good thing to remember when you list, because IMO buyers agent's will never show a home to a client they cannot make money on. Ask your agent to list it at 3.5% or higher to lure the willing, and agree for a bigger kickback.

Agree with this. My first home sale was in a desirable neighborhood but I had already closed on my new one when I listed the current. So for me I wanted to make sure that I had the most attention possible. We offered an additional 1%. I was under contract within days. Potentially may have anyway, but it was the most important to me to not have two mortgages.

[spencgr]

Originally Posted by leavingwash

Agree with this. My first home sale was in a desirable neighborhood but I had already closed on my new one when I listed the current. So for me I wanted to make sure that I had the most attention possible. We offered an additional 1%. I was under contract within days. Potentially may have anyway, but it was the most important to me to not have two mortgages.

1% of my home equals 2 mortgage payments. Personally, I'd wait before offerimg the extra.

[leavingwash]

Originally Posted by spencgr

1% of my home equals 2 mortgage payments. Personally, I'd wait before offerimg the extra.

As I stated, for me it was a decision that the 1% was worth getting my home under contract quicker without the extra stress of a potential double mortgage, the fact that some insurance companies will not insure if place if vacant, the fact that I would (in my opinion) need to go back each night and get all lights turned off, then go back in the morning to turn lights back on for potential showings (my agent recommendation that lights always be on and not wait for a buyer's agent to arrive to do that). Didn't say it was worth it for everyone.

Aside from that, the point was simply confirming the previous statement that the additional commission generated more showings. My home was under contract within days, another one (same floor plan, same assoc and similar condition) listed a couple of days before mine and sat on the market for several weeks.