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Is 6% the typical realtor commission one pays when selling their house in this area? I always hear it is negotiable but the one I spoke to wouldn't budge at all.
"Negotiable" does not mean that all agents will or can flex on commission. We have the right to set our fees, and to stand by our fees. The one agent you interviewed may carry a ton of overhead, or may work for a firm that carries a ton of overhead and has to stand on their fees.
There may be junk fees from the firm to agent, from an out of state corporate office (people/entities who will not be involved in serving you in your transaction but who put their spoons in the soup) to firm and to agent that run costs up.
There may be unproductive listing/marketing expenses to be able to wave whiz-bang shiny stuff at you to impress you without providing demonstrable benefit to your bottom line.
So, clearly, there is value in interviewing a few agents.
No one has to pay 6% to successfully list and sell a Triangle property at a great price with full service support from a skilled listing agent.
If the listing is at 6% and the buyers agent gets 2.4%, that means the listing agent is getting 3.6%. In most US markets, sales commission is equally split between agents, and agents help buyers and sellers convey homes quite successfully.
The odd 60/40 split is something to have an agent justify with fact.
That is in a sellers market, where inventory is flying off the shelves. People are even writing offers on properties sight unseen in many instances.
There may well be an absolute ton of fat in that 3.6%. Make the agent justify the fat.
Toss them out if they refer to other agents with lower fees as "discount agents." That is a significant training failure and ethical issue.
90% of listings in Wake County offer 2.4% to buyers agents. And, buyers agents are climbing all over each other to get into those listings, and writing multiple offers on house after house.
This is unrelated to listing agent skill and marketing. We have an awful inventory shortage.
The listing agent has it much easier in a sellers market than a buyers agent does. IMO, and pricing, a buyers agent puts in more work and gets equivalent or more reward than the listing agent.
So, along with little reason to pay 6%, there is also little reason to pay 2.5% to a buyers agent.
Additionally, OP, would you be buying and moving locally, and using a buyers agent? Buying with your listing agent should float down the listing fee significantly, since they will get paid on your buy, too. The 2.4% for a buyers agent on your current home is smart, though, to be in that 90%.
One may care to pay 6% or 7% if the listing agent is a favorite niece who is paying off school loans, but even then, the firm takes a huge cut of that gift. It may be smarter to give her the money directly.
Last edited by MikeJaquish; 04-30-2018 at 05:00 AM..
What is likely comes down to is the busy, more experienced realtor's won't budge, while the newer, not so busy realtors will.
With anything, you get what you pay for.
I completely disagree with you. My realtor has 14 years of experience and is one of the highest producing realtors in the Cary/Apex area. She has represented me twice in the past, both selling an existing home and purchasing a new one. We will be moving to the coast in a couple of months and are getting ready to list our current home. Given our previous dealings and loyalty, this realtor is giving us a great deal.
Please no DM's, I am not going to divulge the name of my realtor.
I completely disagree with you. My realtor has 14 years of experience and is one of the highest producing realtors in the Cary/Apex area. She has represented me twice in the past, both selling an existing home and purchasing a new one. We will be moving to the coast in a couple of months and are getting ready to list our current home. Given our previous dealings and loyalty, this realtor is giving us a great deal.
Please no DM's, I am not going to divulge the name of my realtor.
She knows you, and knows you're a good client (I'm assuming since she's willing to work with you for a third time). She also knows you'll come back with any future business. If she was busy, and a new client she knows nothing about contacts her and immediately wants to negotiate rate, then it may not be worthwhile to take on that new client, and she may stand firm at 6%.
This is all theoretical...
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