U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 01-31-2019, 08:06 AM
 
10,189 posts, read 7,819,025 times
Reputation: 24956

Advertisements

OP, what's the problem? YOU agreed to this when you hired the agent.
Reply With Quote Quick reply to this message

 
Old 01-31-2019, 08:36 AM
 
615 posts, read 343,243 times
Reputation: 486
Quote:
Originally Posted by MikeJaquish View Post
If the agent is new, they probably DO get a very small cut of the total commission.
It surely will NOT be $10,000.

More likely the agent will see about 1/4 of the $12,000, at best.
So, maybe $3,000. Before taxes and expenses.
Maybe less if there is a franchise fee to be paid.
If the firm has a policy that a newbie will work with and compensate a mentor for support and guidance, that could be another 20-30% off the $3,000.
This is about what I thought. Thank you for reasonable, non offensive post.

I'll definitely not come back to this "Real Estate" forum for anything.
Reply With Quote Quick reply to this message
 
Old 01-31-2019, 08:37 AM
 
Location: Northern Virginia
4,853 posts, read 5,056,707 times
Reputation: 11717
Quote:
Originally Posted by Blazin65 View Post
My house is under contract and the agreed upon commission was 6%. The house sold pretty quick and I've made the comment that the agent didn't have to do too much and of course that rattled them. According to them, their share of the 6% is very low.

So I'm curious if anyone has an ideal of about what this is for the actual agent. I do know this agent is fairly new to the business, so I'm guessing it's low. Let just use $200000 selling price for easy numbers. How much of 12000 actually goes to the listing agent in someones good guess?
Different brokerage companies offer different types of commission splits, and some even offer an option for their agents to choose from.

A few examples:
- an agent can pay a monthly flat fee to their brokerage
- a monthly fee + a percentage of their sales commission
- a straight percentage of their sales commission

Keep in mind, out of that amount are the typical deductions such as federal and state, medicare, social security withholdings, and retirement savings. And usually an agent is responsible for their own healthcare insurance costs since they are usually 1099 contractors.

And FWIW choosing one of those examples usually comes hand-in-hand with how expenses are paid: some agents pay for advertising or are allocated a certain amount of space for advertising their listings, some buy their own stationary, business cards, signs, lockboxes, lockbox keys, association fees, franchise fees, continuing education costs, photographer fees, etc., etc. and in some instances the brokerage pays for some of those expenses but certainly not all.

If your buyers brought their own agent, your agent's brokerage (not your agent) probably receives $6,000, and then it's difficult to guess how much your agent will get because we don't know the fee structure for his/her brokerage.

My super rough guesstimate because this agent is new and is likely not high producing yet, he/she will gross less than $4k.

(my sister is an experienced agent and has shared with me how these things work)
Reply With Quote Quick reply to this message
 
Old 01-31-2019, 08:38 AM
 
Location: Cary, NC
32,285 posts, read 56,466,756 times
Reputation: 31020
Quote:
Originally Posted by Blazin65 View Post
This is about what I thought. Thank you for reasonable, non offensive post.

I'll definitely not come back to this "Real Estate" forum for anything.
Actually, there is a lot of very good information and guidance shared here, daily.

Along with some fun.
And, yes, some trash talk.
Reply With Quote Quick reply to this message
 
Old 01-31-2019, 08:38 AM
 
615 posts, read 343,243 times
Reputation: 486
Quote:
Originally Posted by markjames68 View Post
Interesting thread.

Iíve had good agents, and poor agents.

All agents pull comps, get a photographer to take pictures, post it on a site, assemble collateral and host open houses. These are all table stakes and whether or not a house sells in a day or a year there is no patting on the back for that. Realtors, please donít make this seem like a big deal because itís not at all. Even video listings, ecards, etc. are all easily put together now.

In a hot market, with a competitive price and an attractive and clutter free property, it would take the absolutely worst of agents to not sell it quickly. Why? Because they arenít actually selling anything.

Most listing agents list. They donít sell. They CANíT sell.

There are maybe 5-10% of the total population of agents in an area who are truly professional, and who can actually sell a home. You know this because when conditions arenít perfect they still get the offers in. The hacks are the ones who - despite the home being competitively priced - only have ďdrop the priceĒ as a suggestion.

I had one in Florida use the excuse ďthe weather is too poor for people to come to the open houseĒ, and then the next weekend ďthe weatherís so nice, people donít want to come to the open houseĒ. (I didnít select this agent, it was selected for me by a corporate relo company. She had a track record.) Iíd ask for suggestions and sheíd ask me what I thought.

A great one in NY got me an offer in a down market during the worst time of the year to sell. She was motivated, knew what we needed and committed to us to getting it done.

A good agent is worth their weight in gold, and 6% is a good deal.

A poor agent only keeps your house on the market, doesnít think creatively, adds stress and doesnít help you sell.
Good insight. Thank you!
Reply With Quote Quick reply to this message
 
Old 01-31-2019, 09:27 AM
 
134 posts, read 33,598 times
Reputation: 385
Quote:
Originally Posted by goldenlove View Post
You expected the real estate agent to get your house ready for the photographer?
I think it was more that the OP was looking for guidance in getting the house ready - at least thatís how I interpreted it.
Reply With Quote Quick reply to this message
 
Old 01-31-2019, 09:43 AM
 
Location: Raleigh NC
8,314 posts, read 6,527,886 times
Reputation: 7354
Quote:
Originally Posted by Blazin65 View Post
Inspection only turned up one thing and I'm the one that has totally handled this.

I guess I will assume the agent makes about $10000 of the 12000. But by no means will I congratulate her or thank her. Way to many times she has talked to me and said "you", rather than "we".

The agent is really only a 3rd party of the sell in this situation.

I also bought a house with this agent and she failed on many, many fronts in hind site. So the sooner this transaction is done, the better.
I'm sorry you've had a bad experience.

From what you've said, she wasn't the one that brought the buyer, so you should expect she gets about $3K.
Reply With Quote Quick reply to this message
 
Old 01-31-2019, 10:56 AM
 
Location: Central Texas
20,120 posts, read 36,984,699 times
Reputation: 21980
OP, say your boss gave you a project and you both agreed to do it for a certain wage. You managed to get the project done (though in your case, the project of selling your house is NOT done until closing - the real work starts once you have a contract and is often not seen by the client if the agent is any good at dealing with potholes on the road to closing), and you got it done quickly because you're good at what you do.

Then your boss comes to you and says, "You got that done so fast, I don't think I want to pay you what I agreed to do. Why don't you give me some of your salary back?"

Try looking at it that way.
Reply With Quote Quick reply to this message
 
Old 01-31-2019, 11:06 AM
 
3,338 posts, read 2,860,041 times
Reputation: 6812
Quote:
Originally Posted by Blazin65 View Post
The house sold pretty quick and I've made the comment that the agent didn't have to do too much

Bet you priced it too low.
Reply With Quote Quick reply to this message
 
Old 01-31-2019, 11:08 AM
 
Location: New Market, MD
2,032 posts, read 2,518,792 times
Reputation: 2538
Realtors are overpaid! I don't know why people fall for this though. I sold our primary house of 6 years last year - House was in perfect condition. I offered 4% total (1.5% = 2.5%). My agent freaked out when I told him I am sticking with 4%. he realized quickly someone else was going to grab it so called me later that day apologized and agreed. Was under contract within 3 days. Not going to pay 6% ever. Even 4% is way too much for what they do.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2019, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top