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Old 11-05-2018, 02:14 PM
 
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The Realtor may have paid for something out of pocket during the transaction and being reimbursed at closing. For example many times I schedule home inspections or c/o inspections and pay for them up front. At closing I are reimbursed for the expenditure. This will show up on a closing statement.
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Old Today, 06:41 PM
 
Location: San Francisco Bay Area
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Originally Posted by Brandon Hoffman View Post
This is a very rational statement. Your locale and prices, certainly 5% is common but it's different in some markets. Our median price is around 185k and our most common rate is 6%. Twenty years ago it was 7%. For full time professional in my market, it would be harder to get by on 5%. It could be done if we could get rid of the part-timers and hobbyists because the professionals would have more volume to make up for the smaller commission per transaction. It would also be easier to set mins/maxes.

As per your suggestion for a minimum, it's up to each agent/company do determine what they'll accept. I do personally have a minimum. Some don't. Per the DOJ, we can't do that as an industry because it would be colluding to set commission rates. The DOJ wants commissions negotiable.
Thanks. Further research shows that 4.5% is a common commission fee in this area, with 2% to seller's agent and 2.5% to buyer's agent.

That's not counting Redfin, which brought a 1% listing fee commission to San Francisco this year. Interesting is that they do have a minimum fee, i.e. "Redfin's home-selling customers pay Redfin just 1 percent of the final sale price, subject to a minimum of $5,500 in the San Francisco market."

Redfin Brings 1% Listing Fee to San Francisco | Redfin

I wonder if they might change that minimum here as the houses are moving somewhat slower now. I suppose time will tell. It's easy to make money when expensive houses are on the market for a short time and sell for a lot. It's quite another when it takes more time, more effort, more marketing, etc. or in a market where the average property sells for significantly less.
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