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I have a friend with property in the Hendersonville, NC area. She is thinking about putting it up for sale and has heard different responses about the typical commission to a brokerage company. What should she expect to be the stipulated commission? Does it vary based on whether there is a residence on it or if it is vacant land?
When I lived in Virginia and attended real estate school and eventually on to work for a firm. It was my understanding that a group of agents could not band together and "set" the commission percentage. It was illegal to do so. It was also my understanding that a commission was negotiable between the seller and his/her agent. However, it was standard that 6% was what most agents worked with and was the "jumping off point" for commission negotiations. I'm not sure what the rules are here in NC but, If I were a betting person I'd say the rules were the same.
Halo is correct: there is no standard-setting authority, so you can find (or negotiate) commissions in a range of values (or go with a flat-rate service). Sellers should be clear on what services the agency provides for the agreed-upon fee. Among "traditional" commission firms, sustainable commission levels in this area do tend to cluster around 6% for homes, with a higher rate (often 8-10%) for building lots.
irish, your friend should interview several agents/firms to determine which one represents the best value for her particular situation.
There is a good article in the Sept 2008 Consumer Reports about negotiating a commission with realtors. Basically said that folks who paid 3% were just as happy with the service as those who paid the full 6%--Larry
Your friend may want to look into one of the discount brokers. From my experience most listing agents do nothing other than put your property in the MLS. It sits there like a worm on a hook waiting for someone to come by. Think about the "going rate" on a listing with %6 commission. On a 500k house thats comes to 30K. If someone came by your house, took some picture, measured the sf, then came up with a description for the house and then wanted you to pay them 30k, would you do it? Most people don't make that much in a year. The problem lies in that the NAR has created, in my opinion, a monopoly on the listing market. Don't get me wrong some agents are worth it when they actually work at selling your house. Keep in mind that you can always fire the agent if they do nothing.
Hi Western NC.. Commissions are based on company policy and are usually determined by the type of market we are selling in. Right now in the Treasure Coast of FL.( East Coast) the sellers are paying higher commissions due to the length of time and the tough market we are in. Foreclosures and Short Sales the commission becomes a crap shoot. The Lending institution holding the Mtg calls the shot on how much will get paid to the Brokers. Usually 5 to 6 percent, but it depends on each situation. You guys in NC seem to be holding your own when it comes to RE and haven't taken the beating we have in FL. Make sure you have a Broker that produces and doesn't do RE in their spare time. Work with a Full time Broker... On the other hand, in a really good market we are easier on the commission. Shorter period of time, less expenses involved. The liabilty is the same no matter what we get paid...
Does anyone know if a mobile home would be a higher commission?
The question is, are you buying or selling?
As for owned or rented lots, I don't know of any banks that would take a mortgage on a mobile home. Manufactured or modular home on owned land, yes.
Commission most likely is the same, average for the area is 6%, some wiggle room, but many offices don't want to handle 'mobile homes', especially on leased land. What do you consider a mobile home ? A 'mobile' home is just that -- on leased land in a "park", no foundation, and it can be moved because it is on wheels.
Manufactured homes on permanent foundations are not mobile homes.
Thanks for the response. The land is owned, but it is in a park. It is a mobile home, but a dining room was added on, so it is no longer "mobile". We are sellers.
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On the other hand, in a really good market we are easier on the commission. Shorter period of time, less expenses involved. The liabilty is the same no matter what we get paid...
