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Old 06-29-2011, 02:08 PM
 
67 posts, read 56,443 times
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What is the going rate being paid to realtors? Our agent started at 7 % came quickly down to 6 and mentioned the fact that 5 could be done if he sold our house and helped with the purchase of the house we are looking at.

Supposedly he gets 1.5 % of the deal. I don't have issues with that but I think 6 or 7 is pretty high for the company.

Anyone?
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Old 06-29-2011, 02:28 PM
 
28,384 posts, read 67,987,556 times
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Locally (suburban Chicago) the ONLY way a 7% commission is defensible is for really really really really low priced properties / units. 6% is the norm. The broker /agent split often does leave a pretty modest 1.5% as the agent's take... Very few folks understand how many deals one has to do to make a full time living in any area of normal priced homes.
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Old 06-29-2011, 02:39 PM
 
Location: Tempe, Arizona
4,511 posts, read 11,563,747 times
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Legally, there is no "going rate". All rates are negotiable as you found out, although a given brokerage may require their agents meet certain rates. It's illegal to collude with other brokerages to set a market rate.
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Old 06-29-2011, 03:44 PM
 
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It is illegal to say there is a set rate. Now a company can have "their" guidelines as far as what they tell their agents to list for but, as an industry they cannot state that their is a set rate for any area.
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Old 06-29-2011, 05:02 PM
 
67 posts, read 56,443 times
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Thanks for the replies. That rate has pretty much killed this deal. That and the fact the seller countered much higher than I had hoped. I am struggling with paying 10's of thousands in fees and commissions to do this transaction. It's like a tax! I worked for years to build equity (yes I have equity!) and the real estate agency wants too big a bite out of it.

I think I am going to stay put and remodel! Thanks again for the replies.
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Old 06-29-2011, 06:34 PM
 
Location: Louisville KY Metro area
4,824 posts, read 12,485,940 times
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Quote:
Originally Posted by TotalCare View Post
It is illegal to say there is a set rate. Now a company can have "their" guidelines as far as what they tell their agents to list for but, as an industry they cannot state that their is a set rate for any area.
I understand your intention, however, a Broker can set commission rates for all their agents. You are correct that no two competive brokers can "conspire" to agreed rates.
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Old 06-29-2011, 07:49 PM
 
Location: NJ
17,579 posts, read 38,328,551 times
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Quote:
Originally Posted by Rockrunner View Post
Thanks for the replies. That rate has pretty much killed this deal. That and the fact the seller countered much higher than I had hoped. I am struggling with paying 10's of thousands in fees and commissions to do this transaction. It's like a tax! I worked for years to build equity (yes I have equity!) and the real estate agency wants too big a bite out of it.

I think I am going to stay put and remodel! Thanks again for the replies.
Are you the seller or buyer?
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Old 06-29-2011, 08:01 PM
 
Location: Guadalajara, MX
3,022 posts, read 5,545,315 times
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Keep in mind that when he says 5, 6, or 7%, he's referring to the entire commission in the deal, including the other side as well - not the commission being garnered by simply his brokerage.

If you agree on 6%, each brokerage will split 3% and will probably split 50/50 with them, and he would receive 1.5%.
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Old 06-29-2011, 10:24 PM
 
Location: El Dorado Hills, CA
3,670 posts, read 7,982,239 times
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And remember, the commission is split between the buyer's agent and the listing agent. If the listing agent reduces the commission, the buyer's agent will see 1/2 of that reduction. Ethically and legally that should not change which of the many houses out there to show a buyer but...
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Old 02-09-2012, 08:19 PM
 
1 posts, read 5,456 times
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Quote:
Originally Posted by Rockrunner View Post
What is the going rate being paid to realtors? Our agent started at 7 % came quickly down to 6 and mentioned the fact that 5 could be done if he sold our house and helped with the purchase of the house we are looking at.

Supposedly he gets 1.5 % of the deal. I don't have issues with that but I think 6 or 7 is pretty high for the company.

Anyone?


An agent commission is 6% (3% to selling agent and 3% to buyers agent)

Currently you see a lot at 5%, its the usual now. Ive never seen 7% before and if they want your listing 5% is not a problem at all, they will not walk away. Right now you should get 5% with nothing attached and if the agent does a good job then you let him help you with the purchase of your next home. You could also give incentives, meaning if the agent sells your house you can give the agent a "selling bonus"

Most agents will get their 2.5% but they also have to give a % to their broker. Now all agencies charge their agents diff. splits. Market is in your favor but if the agent is good and puts a lot of time and their money into selling your listing then 6% is fair. Again I've never seen 7% before.

If you have questions let me know and I can tell you what I know.
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