2.5%to Buying Agent? (for sale, coop, broker)

[nyc2020]

If listing a home for sale in northern va for approximately 800k, what would be the impact to the seller of offering 2.5% rather than 3% to the buying agent? Fewer offers? Low balled offers? No difference?

If little to no difference, what if the seller lists at 2.5% to the buying agent and 1.5% to the selling agent? Is this somewhat common?

What is the general commission schedule nowadays?

[kww]

Originally Posted by nyc2020

If listing a home for sale in northern va for approximately 800k, what would be the impact to the seller of offering 2.5% rather than 3% to the buying agent? Fewer offers? Low balled offers? No difference?

If little to no difference, what if the seller lists at 2.5% to the buying agent and 1.5% to the selling agent? Is this somewhat common?

What is the general commission schedule nowadays?

In my (biased) opinion, in this market, you'll be fine with 2.5% to the coop broker.

Concerning overall commission when sitting down to discuss your listing, everything is negotiable. Just make sure you understand what you are, and aren't, getting for your money.

[boyd888]

If the buyer's agent has a contract with a homebuyer that says they get 3% commission and you are only offering 2.5% there is a very good chance they won't come look at it because the homebuyer doesn't want to cut a check to their own realtor or the realtor may not want less commission.

2.5% isn't unreasonable though in this area. You may have a hard time finding a selling agent for 1.5% unless you have like a this is gonna sell in a week after a bidding war type place.

[nyc2020]

Originally Posted by boyd888

If the buyer's agent has a contract with a homebuyer that says they get 3% commission and you are only offering 2.5% there is a very good chance they won't come look at it because the homebuyer doesn't want to cut a check to their own realtor or the realtor may not want less commission.

2.5% isn't unreasonable though in this area. You may have a hard time finding a selling agent for 1.5% unless you have like a this is gonna sell in a week after a bidding war type place.

How common is the minimum 3% clause for home buyers?

[skeddy]

the 2.5% listing will be the last one shown of available homes.

[kevinm]

Originally Posted by boyd888

If the buyer's agent has a contract with a homebuyer that says they get 3% commission and you are only offering 2.5% there is a very good chance they won't come look at it because the homebuyer doesn't want to cut a check to their own realtor or the realtor may not want less commission.

2.5% isn't unreasonable though in this area. You may have a hard time finding a selling agent for 1.5% unless you have like a this is gonna sell in a week after a bidding war type place.

This. The buyer is on the hook to make up the difference since most expect 3%. The LISTING AGENT should be the one taking the haircut to make the sale.

[Carlingtonian]

Not sure how any realtor can tell their client they refuse to show them a particular property the client has seen online (which they definitely will). I guess they could explain it's because of the 2.5%, but if I were the client, that would make me livid. Talk about winning the battle to lose the war.

But to prevent that, if you're selling FSBO, just list it as "realtors welcome." That just means"You'll be getting paid something." If they're smart, they'll take it.

[kww]

Originally Posted by nyc2020

How common is the minimum 3% clause for home buyers?

Impossible to say, as you (or anyone here) would have to have access to the buyer broker agreement the agent/buyer signs (which you technically have no right to view). I can speak for myself in that I only collect whatever the coop (listing) broker offers via the MLS (If a buyer asks me about a FSBO we approach it case by case and see what the seller might be willing to offer)

As mentioned, if you have a buyer interested but their agent requires 3% commission, the buyer might not be willing to cover the difference so your house won't be viewed.

I still feel you'd be fine with 2.5% offered to the buyers agent, just make sure your listing agent has a strong marketing plan in place, and your price is appropriate to the market (condition etc)

[kww]

Originally Posted by Carlingtonian

Not sure how any realtor can tell their client they refuse to show them a particular property the client has seen online (which they definitely will). I guess they could explain it's because of the 2.5%, but if I were the client, that would make me livid. Talk about winning the battle to lose the war.

But to prevent that, if you're selling FSBO, just list it as "realtors welcome." That just means"You'll be getting paid something." If they're smart, they'll take it.

I agree. In all my years in the business, I've had exactly 1 agent contact me directly to ask about increasing the commission I offered in the MLS (from 2.5 to 3%). This same agent did that on 3 of my listings over the years. I always told him to show the home and if his client was interested we will work something out. He never brought me an offer, and in I think 2 of the 3 homes, didn't end up showing it.

It's possible his buyer would have ended up making the best offer for my seller, but for those 3 homes, each sold easily at an attractive price for my clients so it was a non issue (for my clients, as I let them know an agent was inquiring about increasing the fee he would have collected).

It's also possible that plenty of agents never even offered these 3 listings up to their clients, due to the 2.5% being offered.. I'll never know. But in the Northern Virginia market (IMO) a house priced appropriately and marketed well will sell easily (and these thoughts/opinions are conveyed to sellers when discussing the listing of their home).

just my .02