real estate percentages (Memphis: for sale by owner, insurance, credit) - Tennessee (TN) - City-Data Forum

memphismommy · 11-12-2007, 01:48 PM

Okay, all you agents... help me out here. We're leaving the Memphis area and just talked to the agent (broker) who sold us our house 8 years ago. Today he wants 8 percent to sell it. I know it's a buyers market and all, but... have percentages really spiked this much? I was expecting 6%... help!

MrsMichelle · 11-12-2007, 05:24 PM

There is no set fee. Each agent has the right to set their own commission. There are some brokerages that expect a certain amount from their agents. I have heard of a few not taking less than 7%. But, my advice would be to interview many agents. Try 3 or more and make a decision then. You call the shots though. You are hiring them. You have the right to negotiate the commission. If the particular agent won't go to 6% or less then move on. Also, if this person sold you the house the first time, why wouldn't they give you a break since you are coming back to them? That sounds greedy and uncaring.

TCarlton · 11-13-2007, 12:10 AM

Commisions are the agreed upon rate, but WOW...

dalorax · 11-13-2007, 06:58 AM

I don't want to discredit realtors however, if the seller's agent is charging 8% and the buyer has an agent then that agent has to get paid as well. Seems as if too many hands in the cookie jar. They will save time and some effort.
But if you have the time, and with a little effort you can cut out the middle man all together! FSBO!

For Sale By Owner, homes for sale, houses, real estate, for sale

MrsMichelle · 11-13-2007, 07:07 AM

FSBO companies still charge a fee.

AnnPedi614 · 11-13-2007, 01:56 PM

Quote:

Originally Posted by dalorax

I don't want to discredit realtors however, if the seller's agent is charging 8% and the buyer has an agent then that agent has to get paid as well. Seems as if too many hands in the cookie jar. They will save time and some effort.
But if you have the time, and with a little effort you can cut out the middle man all together! FSBO!

For Sale By Owner, homes for sale, houses, real estate, for sale

What most people fail to realize is the time and effort not to mention the money that goes into selling a house. Advertising is not free, websites usually are not free, gas is on the rise, printing flyers, sending postcards this all takes money. And yes the buyers agent also usually gets half of that commission. As a Realtor in Florida the highest commission I ever got was 7% and this was so that the buyers agent could get 4% and I would take 3%, it generated more showings because agents like to make money.
Remember though, we may get 3% but we aren't getting the full 3%, there are transaction fees, errors and ommissions insurance, we pay the board of Realtors well over a $1000 a year in order to use their MLS system and our dues which you have to pay to use the MLS. Then our Brokers take their cut which is anywhere from 50-10% depending on what deal you made with them and what the company allows.
Is it worth it to have a Realtor, it sure is unless you want to spend 100s of 1000s on advertising, hiring an attorney to cover your put, risk getting sued because you didn't do the proper disclosures, you want to allow strangers in your home unprotected (most Realtors get personal information before doing a showing and qualify a buyer first).......The list goes on and on. You get what you pay for, selling a house on your own is no easy chore, you need to know laws etc........
To the OP I wouldn't give a Realor 8%, in this market it should be 6% or possibly 7% but if you go 7% make sure you tell your agent you want 4% going to the buyers side and you could possibly throw in there that if they have both sides you will only give them 5% I have done that in the past for my clients. I no longer sell Real Estate as we just moved to Memphis but if you want the name of an incredible Realty team send me a PM and I will email you their email address. Good Luck selling your home.

Bowyer · 11-13-2007, 06:31 PM

First time poster here--Hi all......

If an agent wants 8% they are nuts. 5 to 6% is more like it these days. 8% and they won't sell my house! 5% gets it sold. I tried FSBO and every tire-kicker w/o any money wanted to look around, make offers they couldn't back up with $$$ and completely wasted my time. I broke down and hire Allen Green @ John Green and Company. Great move on my part. House sold quickly. Free 'stager' for 2 hours included, open houses when I wanted them, I changed the price (lowered it to help it move) and he had the MLS price changed in a matter of minutes! I come home and he is changing out the color fliers on my sign to reflect the change. Great SERVICE. Originally he wanted 6% and I agreed, but with the market as flooded as it is, I offer to lower the price to make it a super deal for any buyer and asked if he would agee to 5% (2% for him, 3% to buyes agent). He said yes and the house sold in less than 50 days.

Everything is negotiable in life. If someone wants your business, they need to realize that. 8% is laughable! Pay no more than 6%, try for 5%.

PS--I have nothing to do with Alan Green and am NOT in the business at all--Just sharing my experience. Great service and a fair commission, IMHO!

AnnPedi614 · 11-16-2007, 06:26 PM

Quote:

Originally Posted by Bowyer

First time poster here--Hi all......

If an agent wants 8% they are nuts. 5 to 6% is more like it these days. 8% and they won't sell my house! 5% gets it sold. I tried FSBO and every tire-kicker w/o any money wanted to look around, make offers they couldn't back up with $$$ and completely wasted my time. I broke down and hire Allen Green @ John Green and Company. Great move on my part. House sold quickly. Free 'stager' for 2 hours included, open houses when I wanted them, I changed the price (lowered it to help it move) and he had the MLS price changed in a matter of minutes! I come home and he is changing out the color fliers on my sign to reflect the change. Great SERVICE. Originally he wanted 6% and I agreed, but with the market as flooded as it is, I offer to lower the price to make it a super deal for any buyer and asked if he would agee to 5% (2% for him, 3% to buyes agent). He said yes and the house sold in less than 50 days.

Everything is negotiable in life. If someone wants your business, they need to realize that. 8% is laughable! Pay no more than 6%, try for 5%.

PS--I have nothing to do with Alan Green and am NOT in the business at all--Just sharing my experience. Great service and a fair commission, IMHO!

Glad you shared your experience. A lot of times when Realtors try to tell someone the benefit of using a Realtor it looks like we are simply trying to drum up business. Using an agent saves a lot of time for the sellers not to mention the headaches. I like that you kept the buyers agent comm. at 3%, that was a great move.
I no longer sell Real Estate as I won't be getting my TN License, the market just is bad right now, however I love answering questions like this, I like it more when I read a post like yours!!