Buyer's agent commission in this area (Atlanta: real estate, how much, attorney)

[MiriL]

Does anyone know what a "typical" commission for a buyer's agent is here?

My house has only been on the market 2 weeks, but we've had NO showings. It's priced right (almost 10% less than the relevant comps in my neighborhood), has good internet pictures and is easy to find when doing searches. I'm scrounging for reasons that my house might not be getting showings, and the only two I've come up with are:

1- the buyer's agent commission is lower than normal, so agents aren't bringing clients. Honestly, I'm not even sure what the commission is on our house, but I'm going to find out.

2- The other two houses with a similar floorplan in our neighborhood have fliers in the front yard, but our agent doesn't like to do fliers. Those other houses, as I said, are priced much higher, so maybe they're scaring off potential buyers who assume we're just as high.

We've also had some bad luck with timing -- we put our house on the market just before Tornado Weekend, then last weekend was Easter, so I'm not too concerned yet. I just want to make sure I'm not missing on a potential problem.

Thanks in advance!

[George Chong]

I am assuming that your house is in the metro Atlanta area - if so - the "typical" Buyer's Agent commission is 3%. You can easily check on what the Buyer's commission is if you look at your listing agreement with your Listing Agent.

Go to the second page of the contract, it should be item #7B. There should be a number in that box. #7A is the TOTAL commission.

Do you know if the other homes in your neighborhood have been shown much? You not only have competition within your own subdivision but surrounding neighborhoods. When I have a listing - I try to place the price in a competitive spot in the subdivision and what other agents would be showing that would be a comparable/alternative.

IMO - you need flyers. Not trying to say anything negative about your agent, but how does anyone know how much your house is selling for, number of bedrooms and baths, etc if there is no flyer? Yes, I would assume that your house is listed just as much as the others in the neighborhood that has flyers. If a potential Buyer without a Buyer's Agent is just happening on your house - you want them to remember your house in some fashion. In other words, scribbling down some notes on the back of a flyer indicating that the house was less expensive than the others. You want to make it as easy as possible for someone to look at your listing. Some people are just lazy and do not want to pick up the cell phone and call on the house to get information or wait until they get home and look up the information on the web. I believe in flyers and it personally drives me nuts when I am out with a Buyer and there is no information on the property in question.

2 weeks being on the market and no showings is not horrible. It might be, like you mentioned the circumstances of the tornado and Easter. I barely had any phone calls last weekend when I was on duty for my office.

Good luck! If you have priced it well - you should sell and the buying season traditionally starts to get into a higher gear in Atlanta.

[IntownHomes247]

What's your FMLS or GaMLS#. People on this board (and especially the real estate board) are very accommodating about critiquing homes, which might provide you with some insight.

Also, what commission are you currently offering the buyer's agent?

[MiriL]

Thank you both for the feedback. I'm going to DM you my MLS #, if that's okay. I'm not quite ready to "out" myself here! I'd love feedback.

I'll take a look at my contract tonight. I have a bad feeling that I've gotten myself into a bad situation here, but my agent came referred from several people I know. I may have been too trusting, plus I've never sold a house before, so I probably didn't ask the right questions. I do know that we have a graduated commission -- if my memory is right (which is probably isn't, I'm getting older ).

The flier thing is driving me a bit crazy. The agent wrote on the marketing proposal that they do "glossy fliers" -- but apparently they're only for inside the house. When I asked about fliers, and told her how important they were for our own house searches, she kept insisting that people who are actually interested in the house will call, so you get a better quality of buyer. My feeling is that we went through a lot of work to get our house in good shape so it might surprise someone who wouldn't initially think it was right for them -- I want as many people walking through as possible! I don't know if their office even has the capability to make fliers of the sort I thought we'd have. Grrrr. Now I'm in a 6-month listing contract and hoping to buy out of state in the next few months.

[scgraham]

Be careful here. When speaking about commissions, you can offend the Sherman Antitrust Act -- a federal crime. All commissions are negotiable and there is no "typical" or "standard" commission.

[plessthanpointohfive]

The word typical only means you'll find it more than anything else. It's not illegal to say that.

[George Chong]

No problem in sending the number via a PM.

Okay - so I get that the graduated commission. Am I reading this correctly - the listing agent gets 4.5% and the buyer's agent gets 2.5%? What is she doing to "earn" the additional 2% above what the buyer's agent is doing?

Honestly, if the flyer thing drives you crazy, then you need to demand it and put that issue to bed. If they are making "glossy" flyers for inside the house, then they can make more glossy flyers for outside the house. Yes - I totally agree with you that you want to make the process as easy as possible for ANYONE to see your house. How does your agent define a better quality of buyer? The quality of buyer that I want to attract to my listings on behalf of my clients are one that will purchase the property for close to or the asking price. IMO, you cannot "judge" what quality of buyer you are attracting. You just want one that is financially capable of closing on the property.

You can fire your agent you know (not that I am suggesting it - just want to give you another option so that you don't feel like a caged animal.) Also check to see if there is a safety clause in your listing agreement. The safety clause protects the listing agent if anyone saw the property while it was on their "watch" so that they get paid if a transaction goes through. You really have to "register" the prospective buyer(s) otherwise the agent has no claim to who has come through and who has not. I do not put a safety clause in my listing agreements. If I was not able to sell your property in the allotted time and you do not want me to relist - then we just need to go our separate ways

Please note that I am not advocating that you fire your agent nor am I trying to steal a potential listing - I am merely stating my opinion based on the information given (legal disclaimer from my attorney of Dewy, Cheatem and Howe)

[plessthanpointohfive]

It is unfortunate that your LAWYER'S name is CHEATEM! LOL!

[George Chong]

Originally Posted by plessthanpointohfive

It is unfortunate that your LAWYER'S name is CHEATEM! LOL!

Get it - read the entire name of the law firm together. I "borrowed" the joke from the guys on "Car Talk".

[IntownHomes247]

I agree about the flyers. Some agents use them, some don't, but if you want them then the agent should provide them. Personally, I like flyers even though I realize that the majority of people who take them are just curious neighbors and not real potential buyers.

And don't worry about having gotten into a "bad situation." If you decide you don't want to work with that agent, and you signed the standard listing agreement provide by the Georgia Association of Realtors, then you are certainly entitled to get out of the agreement. However, if the agent came highly recommended and you like her, you should try first to make sure she understands exactly what you want and give her the opportunity to do that.

There was a discussion a couple of weeks ago on the real estate board about someone who wanted to list her home but the agent she had interviewed refused to do flyers. This was a big deal to her. She wanted flyers and that agent absolutely refused to use flyers. She went with another agent. If you feel strongly about the marketing of your home, then communicate that directly to your agent. It's true that agents should market your home very well in order to earn their commission, but each agent has a different idea about what it means to market a home well. If this agent has been successful using her marketing plan, then she obviously feels it's a good marketing plan. If you really want something different, just make sure she understands what's important to you.