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Your points are valid. But I should add. The Realtor "in most cases" doesn't get all that. Remember, by law the Broker(s) get paid, the he pays the Realtor. Each Broker gets 1/2 of the selling %. So, it depends on the arrangement. The Realtor gets 50% or even 75% of that of what their Broker got. Some do get the whole 3% (one side of the Broker) but then the Broker makes them pay a desk fee.
Buyers don't care? I disagree. I do. Not to argue. But, I know the seller will only go so low in price because he is paying 6%. I would want to know his "net" proceeds. This is his bottom line. If seller only has to pay 4%, then of course he will go lower in price than if he/she has to pay 6%. Our first house we bought. Seller would only go "x" amount. I told our agent (buyers agent) to lower his commission so the seller would accept offer. He did and offer was DENIED. Then we asked the sellers agent to lower her commission. Offer then was resent. Offer was ACCEPTED. Seller saw more $$$ on his end. This is a true story. It shows buyers do care what % was worked out to sell the house.
As for your last comment. Here is the reverse side. Less commission gets your house shown less. I know you disagree. But I know first hand this is true. Most, not all, I repeat not all. Most, look at the commission and will stear the buyer away if it is to low. This is why last year when the 2% (1% each Broker) was coming out, it failed. Houses were not shown. If your paying 4% and getting no bites. Raise it to 6% and watch you get bites. If your thinking of lowering your price, do the math, might be better to raise the %. The numbers are there. It works. I also have never seen a agent give the other Broker more % than him. They like to say this and 99% of the sellers NEVER read what commission were paid and to whom and how much. Old trick. The selling Broker "blocks" the buyers Broker from seeing commissions paid out. Only the selling Broker and seller get to see. He never knows what the true % was. This is done in escrow.
I realize the agent doesn’t get all the commission. That level of detail isn’t important for most buyers when they are looking for a house. The agents can fight about their cut on their own.
As a buyer all I care about is finding the “house of my dreams” the realtors are a necessary evil at the “finding a house” level. Once the house is found and the offers start then the commission may come into play as you illustrated, but not when you are looking for houses. When you are looking for a home you have so many thing to consider I find it hard to believe a buyer would give the commission any thought.
I realize the agent doesn’t get all the commission. That level of detail isn’t important for most buyers when they are looking for a house. The agents can fight about their cut on their own.
As a buyer all I care about is finding the “house of my dreams” the realtors are a necessary evil at the “finding a house” level. Once the house is found and the offers start then the commission may come into play as you illustrated, but not when you are looking for houses. When you are looking for a home you have so many thing to consider I find it hard to believe a buyer would give the commission any thought.
I agree. I will clarify My bad, that comes into play when the offer is about to be made or a counter is made. Not when looking. I think this is why they say it is the most stressful time for someone "buying a house".
4% was the going rate for over a year. I can tell you 6% is back. What they are doing is telling you they will do "x" amount for 4% and "x" amount for 6% of course more for the 6%. With the sellers wanting to sell, they are going with 6% just to sell.
You are exactly right. Now agents know that there are a glut of homes on the market so a seller is that anxious, they feel that the sellers are willing to give the higher percentage.
And open houses really don't do much as stated earlier. If anything, you'll get more nosy neighbors than you will actual interested buyers. In one of my first open houses, I had neighbors and other sellers coming to my home. Guess I kept them in the dark too much.
This is interesting reading ... especially since I'm trying to sell my first house - so I'm a little clueless on this one.
I just met with a woman that seems like a good agent, but when she hit me with her commission ... which was 7%. I asked if that was more than normal, that I thought 6% was the most common and I'd even seen 5% out there. She held strong to her quote of 7% and she told me that if I saw an agent quoting me 6% to sell my house, she wonders what they're not giving me that she is at 7%. I gave her three different opportunities to tell me her rate was negotiable, but she didn't bite.
I know this is all my choice, but I'm curious what you all that have more experience at this thing can tell me. I'm in a suburb of Buffalo (NY) and my house will list for right around $200K ... so we're obviously talking about a $2k difference between 7% and 6% ... let alone anything lower. So far, she's the only agent I've met with - but that's why I want to hear what you all have to say. If the standard rate is really 7% in my area - I don't want to be forced to be a bottom feeder to find an agent that will charge lower and then pay for that 1% with a lesser representation and maybe a lower sales price or maybe a longer time on market, etc.
You are exactly right. Now agents know that there are a glut of homes on the market so a seller is that anxious, they feel that the sellers are willing to give the higher percentage.
And open houses really don't do much as stated earlier. If anything, you'll get more nosy neighbors than you will actual interested buyers. In one of my first open houses, I had neighbors and other sellers coming to my home. Guess I kept them in the dark too much.
Thanks. Open houses are just for nosy neighbors...lol!
This is interesting reading ... especially since I'm trying to sell my first house - so I'm a little clueless on this one.
I just met with a woman that seems like a good agent, but when she hit me with her commission ... which was 7%. I asked if that was more than normal, that I thought 6% was the most common and I'd even seen 5% out there. She held strong to her quote of 7% and she told me that if I saw an agent quoting me 6% to sell my house, she wonders what they're not giving me that she is at 7%. I gave her three different opportunities to tell me her rate was negotiable, but she didn't bite.
I know this is all my choice, but I'm curious what you all that have more experience at this thing can tell me. I'm in a suburb of Buffalo (NY) and my house will list for right around $200K ... so we're obviously talking about a $2k difference between 7% and 6% ... let alone anything lower. So far, she's the only agent I've met with - but that's why I want to hear what you all have to say. If the standard rate is really 7% in my area - I don't want to be forced to be a bottom feeder to find an agent that will charge lower and then pay for that 1% with a lesser representation and maybe a lower sales price or maybe a longer time on market, etc.
Thanks!
I've never heard of 7% commission, not even here on Long Island (NY), and not even from Prudential which is one of the largest agencies. And, you can always negotiate %. When I had an agent from Prudential come and give me a market analysis on our home, she said that the % was going to be 6% and that they are not allowed to go below that. But when I told her that other agents were able to give me 3% she said that it shouldn't be a problem. I know some do work hard but the biggest way to advertise a house on the market is thru MLS so whether it's Prudential at 6%, Coach at 3%, etc., they are still going to advertise on MLS. That's where most buyers look, and if they see something that interests them, they'll call the listing agent. You should definitely get a few agents before deciding which one. This way you'll get an appreciation of the business and which one you feel best to deal with. Good luck!
This is interesting reading ... especially since I'm trying to sell my first house - so I'm a little clueless on this one.
I just met with a woman that seems like a good agent, but when she hit me with her commission ... which was 7%. I asked if that was more than normal, that I thought 6% was the most common and I'd even seen 5% out there. She held strong to her quote of 7% and she told me that if I saw an agent quoting me 6% to sell my house, she wonders what they're not giving me that she is at 7%. I gave her three different opportunities to tell me her rate was negotiable, but she didn't bite.
I know this is all my choice, but I'm curious what you all that have more experience at this thing can tell me. I'm in a suburb of Buffalo (NY) and my house will list for right around $200K ... so we're obviously talking about a $2k difference between 7% and 6% ... let alone anything lower. So far, she's the only agent I've met with - but that's why I want to hear what you all have to say. If the standard rate is really 7% in my area - I don't want to be forced to be a bottom feeder to find an agent that will charge lower and then pay for that 1% with a lesser representation and maybe a lower sales price or maybe a longer time on market, etc.
Thanks!
Ask her what the buyers agent will get and tell her you will only sign the commission papers if it is equal 3.5%>3.5% and see what she says. I bet she keeps 5% and give 2% to the buyers agent! By you saying you will only sign to an even split will get her to confess! I would also tell her you want in the % for her to run a weekly ad. See what she is doing for the extra 1%. Most agents just put in on the MLS and their done. Maybe she is doing more for the 1% doubtful though.
Thanks. Open houses are just for nosy neighbors...lol!
I'm having my first open house tomorrow . Just curious, do most homeowners stay during the open house? We are planning on leaving for 2 hrs. & also taking the dog. I can't deal with nosey neighbors!!
Thanks. Open houses are just for nosy neighbors...lol!
And curious sellers too. Can't forget about them.
But seriously, sellers going to other seller's open houses is a good idea. It gives you an idea of what the competition is like and whether your house is really priced to sell.
I'm having my first open house tomorrow . Just curious, do most homeowners stay during the open house? We are planning on leaving for 2 hrs. & also taking the dog. I can't deal with nosey neighbors!!
Been there, done that. There's no rule set in stone that you have to be there, but I'm going to tell you that you will feel uncomfortable being there when buyers are looking at your home. Plus the buyers will be more reluctant to say much about the house because you're there.
I never stayed home for one and I put my cats in their carrier in our sunroom to keep them out of the way. If you do leave while the open house is going on, you may be curious enough to drive past your home every once in a while to see how many cars are parked in front of your home. We did that just because we were nosy ourselves.
But get ready, you may just have your entire block coming to your open house.
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My bad, that comes into play when the offer is about to be made or a counter is made. Not when looking. I think this is why they say it is the most stressful time for someone "buying a house".
Realtor Commissions - 5%, 6%, 7%+
. Just curious, do most homeowners stay during the open house? We are planning on leaving for 2 hrs. & also taking the dog. I can't deal with nosey neighbors!!
