Real Estate commission (incentive, 3%, agent, commissions)

[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

[AZ_singlemother]

6 or 7% is standard nationwide.

[MPBsr]

The reason I'm asking is even though 6% in normal in Metro NYC we also have a major realtor called Foxtons which only charges 3% (full service).

Was wondering if NE had anyone like them?

[AZ_singlemother]

Contact that same realtor, because, I work with hundreds of Realtors nationwide and I have never seen 3% anywhere and with anyone.

[MPBsr]

Originally Posted by AZ_singlemother

Contact that same realtor, because, I work with hundreds of Realtors nationwide and I have never seen 3% anywhere and with anyone.

Here you go. Moderator cut: realtor website

[AZ_singlemother]

Here's a link to help answer your question:

http://www.mortgagenewsdaily.com/wik...ommissions.asp

Perhaps your agent offered a low discounted commission because New York charges additional taxes on properties over 1 million dollars - the mansion tax. Deeds are also higher in NYC along with regular property taxes. Agents selling in Nebraska are more proned to charge the traditional rate.

[MPBsr]

Originally Posted by AZ_singlemother

Here's a link to help answer your question:

http://www.mortgagenewsdaily.com/wik...ommissions.asp

Perhaps your agent offered a low discounted commission because New York charges additional taxes on properties over 1 million dollars - the mansion tax. Deeds are also higher in NYC along with regular property taxes. Agents selling in Nebraska are more proned to charge the traditional rate.

Foxtons is also in NJ and Conn. Has nothing to do with NY taxes.

Their fee is 3%.

[AZ_singlemother]

Originally Posted by MPBsr

Foxtons is also in NJ and Conn. Has nothing to do with NY taxes.

Their fee is 3%.

New Jersey and CT have very high transfer taxes and deeds. The North Eastern part of the US would fall into the category where Realtors would lower the broker commission to provide an incentive. It's good money for them when the price of properties are higher. The lower the price, the greater chance the realtor will increase the commission.

[MPBsr]

Originally Posted by AZ_singlemother

New Jersey and CT have very high transfer taxes and deeds. The North Eastern part of the US would fall into the category where Realtors would lower the broker commission to provide an incentive. It's good money for them when the price of properties are higher. The lower the price, the greater chance the realtor will increase the commission.

If that's the case, tell me.

Foxtons started (BTW, I don't work for them) in 2000 and their fee was 2%.
This was way before the northeast housing boom. NJ's high transfer fee came into being about 3 years ago.

7% for any state at any price is way to high. My son spoke with the realtor and she's willing to lower it to 6%.

I'm not denying the agent a salary, but not looking to get screwed by them and this is on top of some BS $695 admin fee.

[AZ_singlemother]

Originally Posted by MPBsr

If that's the case, tell me.

Foxtons started (BTW, I don't work for them) in 2000 and their fee was 2%.
This was way before the northeast housing boom. NJ's high transfer fee came into being about 3 years ago.

7% for any state at any price is way to high. My son spoke with the realtor and she's willing to lower it to 6%.

I'm not denying the agent a salary, but not looking to get screwed by them and this is on top of some BS $695 admin fee.

I agree, 7% is pretty high. 6% is more tolerable. I doubt the realtor will reduce it further. If you review the links I sent, it will show you the standard commission split.