Commision (3%, agent, commissions, sales)

[dadbud]

What is a fair commision charged by real estate sales for selling my home? The salesman is asking me to pay 6% which equates to about $10,000 for my asking price of $165,000.00. This seems very high to me. Also is the commision negotiable?

Thanks in advance for the advice.

[SaraSatin]

Standard commission is 6-7% for selling your home. Basically, the agent gets 6% (I have seen some up to 7%) and then splits it with the buyers agent to get them into your home. You can always ask for a reduction, but you might need to shop around in order to make that happen. I have seen some agent sell for 5%, a lot of times that is if they are also going to be representing you on the purchase of your new home.

If you're concerned with the commission you can always go with a flat fee realtor, but they aren't going to do the work that a realtor does for you. Remember, a full service realtor is marketing your home actively, not just putting it on the MLS. They get half of the 6% commission, which then gets split between their brokerage firm, themselves, and to cover their marketing expense which comes out of their pocket.

[CouponJack]

Originally Posted by dadbud

What is a fair commision charged by real estate sales for selling my home? The salesman is asking me to pay 6% which equates to about $10,000 for my asking price of $165,000.00. This seems very high to me. Also is the commision negotiable?

Thanks in advance for the advice.

Couple things... Commissions are ALWAYS negotiable. However instead of focusing most of your energy on the lowest "price", I would focus the majority of my time finding the RIGHT realtor.

You need to interview several realtors. Do your homework. Has the realtor sold in your neighborhood? Do they have experience going back to the bust of the early 90's? Are they savvy and unbiased about the conditions of the market we're in?

These are just some of the questions I would ask....

gl

[geoffandliz]

Same boat. We are listed at 164900, and are now paying 6%. I know it seems like a lot of money to pay , but after interviewing and hearing what they do , it's not a lot at all. They first have to split it with the buyer's agent. Then they also still have to split their 3% with the broker. Anyway, just be careful. We just changed realtors after having been with her for 3.5 months, and she was only charging 5%. We got no offers. Now after being with the new realtor, and hearing how much more advertising he does and follows up more, which my 1st realtor said she had no time for. We can definitely see a difference in the price , sometimes you do get what you pay for. Definitely ask a lot of questions. Our big thing was the enhanced listing on realtor.com. Which we now have 20 pics on realtor.com. Also, now advertises in 5 mags and papers here, previously she did only one. Bottom line is I don't mind paying the difference if I can see where the money is being spent.

Liz

[twinmma]

personally, i don't want to negotiate a commission. i think it is fair to get the full rate when they do their job. In my opinion, someone who does take a lower rate may not be as seasoned and is doing what they can to get business and get started. Not all, but some.
To me it is like paying a general contractor. Yes, I can get one for $10K or maybe one for $5K for a job. The lower price sounds great to me UNTIL I see the outcome of the job and wish I would have gone with the $10K guy as paying more for his experience and quality would have been better in the beginninig. Now, you know those who request more are not always better, so the key is to interview. Look over what they have listed and what they have sold in the past 6 months. Talk to friends or neighbors in the development who have recently sold and see what they have to say about thier realtor.
Again, it is just my opinion, but I believe you get what you pay for and Realtors who do their job should be paid the standard commission. I really hope my agent represents both us as sellers and a Potential buyer as she is doing a GREAT job and she deserves to get all of the commission.
Just part of selling a home. We all should be so lucky to have a relo package pay for closing costs!

[DMenscha]

There is no such thing as a STANDARD commission. I have a commission schedule for land and homes, my competitor has his. They are slightly different.

I had a seller who told me that 8% was the standard for selling land around here. I told her I would stick to 10% and if we managed to get a quick sale, I'd negotiate with her. She told me that she wanted to put the place on the market at 20K more than we told her it was worth. I told her that at that price the commission would be 15%

She listed with us at the price we suggested and we got an offer within 25 days. I took 9%.

[CouponJack]

Originally Posted by DMenscha

There is no such thing as a STANDARD commission. I have a commission schedule for land and homes, my competitor has his. They are slightly different.

I had a seller who told me that 8% was the standard for selling land around here. I told her I would stick to 10% and if we managed to get a quick sale, I'd negotiate with her. She told me that she wanted to put the place on the market at 20K more than we told her it was worth. I told her that at that price the commission would be 15%

She listed with us at the price we suggested and we got an offer within 25 days. I took 9%.

The standard commission in the NE when I sold my home was 6%.

[dncngrl1964]

Originally Posted by SaraSatin

Standard commission is 6-7% for selling your home. Basically, the agent gets 6% (I have seen some up to 7%) and then splits it with the buyers agent to get them into your home. You can always ask for a reduction, but you might need to shop around in order to make that happen. I have seen some agent sell for 5%, a lot of times that is if they are also going to be representing you on the purchase of your new home.

If you're concerned with the commission you can always go with a flat fee realtor, but they aren't going to do the work that a realtor does for you. Remember, a full service realtor is marketing your home actively, not just putting it on the MLS. They get half of the 6% commission, which then gets split between their brokerage firm, themselves, and to cover their marketing expense which comes out of their pocket.

AAAAHHH Sara I like you alot....but don't talk out of turn

THERE IS NO AND I REPEAT NO STANDARD COMMISSION RATE

EVERYTHING IS NEGOTIABLE

Just remember that $100000 seems like alot of money but split 4 ways it kinda slims down alot

[twinmma]

In PA there is a Standard of 6% and in NY it is 7%. I have bought and sold in both states and worked for a large real estate company and this is what we told people. Yes, agents can negotiate thier commission, but many agencies will not take a lower rate. And, I do not blame them

[dncngrl1964]

Originally Posted by twinmma

In PA there is a Standard of 6% and in NY it is 7%. I have bought and sold in both states and worked for a large real estate company and this is what we told people. Yes, agents can negotiate thier commission, but many agencies will not take a lower rate. And, I do not blame them

if they say that there are standards they are breaking real estate laws and NAR laws

and a couple of ethics codes too