Real Estate commission (1%, fees, price, broker)

[Cathryn A]

Foxtons is a full service broker who charges 4%. Commission rates were just increased to promote more activity by cooperating agents. Foxtons is based out of NJ and only covers a small portion of NY (Queens, Westchester and the Bronx).

[DavePautsch]

Real Estate commissions are BY LAW negotiable. It is not legal for the industry to set a standard fee. It is true that, in most markets the starting point for negotiations is 6%, with some agents offering more value to the transaction and earning higher commissions, while other agents de-value their participation and earn less.
The national average is 5.1% (according to NAR)

The negotiation should center around "what do I get for my money?" and "what will I NOT get if I pay someone else (i.e., a discount brokerage) less?"

Make sure that you compare apples to apples in terms of service, in addition to price (commission percentage).

[RedWingsFan]

Speaking of commissions... we had interviewed three realtors. One charged 5% commission rate, one 6% and one 7%! What's up with that?? Weird. How can there be such desparity?

[olecapt]

Originally Posted by RedWingsFan

Speaking of commissions... we had interviewed three realtors. One charged 5% commission rate, one 6% and one 7%! What's up with that?? Weird. How can there be such desparity?

Ask for a list of properties sold in the last year and commission charged on each. Not listed... sold....

Go from there.

Don't tell them who told you to ask...

[cmsvmom]

Foxtons is not a full service realtor. For 3% you get your house on the mls - the split with buyers brokers is so low, most only show their homes as a last resort. A lot of their homes sell for below what others in the area get. They really do not do the representation well.

As for 7% - all commissions are negotiable. Depends on what the agent thinks they are worth, and what kind of work they anticipate in selling, as well as the price.

An agent in my area got 7% for co ops - they were low priced, and a lot of work to qualify the buyers so she charged an extra percentage over her usual fee.

[dncngrl1964]

Originally Posted by AZ_singlemother

6 or 7% is standard nationwide.

This statement is not correct

There is no standard fee and if an agent tells you that they could be in trouble

just remember in real estate

EVERYTHING IS NEGOTIABLE
questions to ask are
what are you going to do for me for my 7%
are you going to advertise extensively?
many open houses?
agent caravan?
color flyers?

you can agree to the 7 percent as long as your agent gets 3 and the buyers agent gets 4 that way he knows alot of effort is being put into someone bringing a buyer to the table

Good Luck

[RedWingsFan]

When I did research online I read that the national average commission rate was like 5.1 percent...

[Lester1970]

Originally Posted by MPBsr

My son is looking to sell his house in Ralston [Nebraska] as he's been living in Virginia for over 2 years.

The agent said that their fee is 7%. I though that was high as in the NYC metro area the normal fee is 6%.

Opinions???

Thanks

There is no normal commission rate. That would otherwise mean that there was price-fixing in the marketplace, which is against the law.

If you arent happy with the rate, keep shopping.

Lester Morris

[olecapt]

Originally Posted by RedWingsFan

When I did research online I read that the national average commission rate was like 5.1 percent...

There are all sorts of wherefors and whereases in all this. My wife and I generally charge 6%. We may on occasion suggest 6.5% or even 7% but that is always to up the commission to the buyers agent where we think making the sale will be hard.

We often discount 1/2 percent to friends, repeat customers and multiple property deals. We do not discount expensive properties...a common custom...we find them very hard to sell and a lot of work. We won't discount for out of town clients...again too much work. Costs us business sometimes but you need to draw the line...otherwise you end up working for free.

There are some specific circumstances where we will go to 5% but they deal with local constraints.

We always pay the buyers agent 3% so we eat all reductions ourselves. Most buyers agents will do the right thing for their clients but enough won't that we think it wise to always do 3%. Over a couple of years we average around 2.6%. So a package at around 5.6%. We are not "hungry" however so we don't doubt the 5.1%...and we are outbid sometimes on jobs we would like to have.

We believe our breakeven is about 1.7% or so. Note though that it is reasonably volume sensitive. If we could double our volume the breakeven would would drop .3 or .4%. Tough though in a weak market such as at present.

[Davart]

Realtor here in Western KY are 4.5% to 6% and frankly they aren't worth that. The last 2 house I sold, I sold myself. I'm a contractor and sell a few houses every year. I use to use Realtors for awhile and they did little to sell a house. As a retired Realtor told me ... "They set around with their mouth open waiting for a roasted turkey to fly in it." I'm not going to give 3% to 6% for nothing, the Realtors here are just lazy they don't market the property, they expect the buyer to go out and find it.