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Well, after trying to "FSBO" for a while we have decided to list with a Realtor. We have the option of a 5% or 6% commission. How much difference does this really make in terms of getting buyers in the door? Does half a percent (3% vs. 2.5%) really give a boost to the number of showings?
Well, after trying to "FSBO" for a while we have decided to list with a Realtor. We have the option of a 5% or 6% commission. How much difference does this really make in terms of getting buyers in the door? Does half a percent (3% vs. 2.5%) really give a boost to the number of showings?
That depends on your market and your house. If your house is one that people will want to come see, or will want to bring their clients to see, because it's a great value, or because it's unique in some way, then you may not need to entice agents with a better paycehck to bring their clients. If, however, your house is similar to many other properties out thre, at basically the same price point, you'll want to do SOMETHING to make someeone choose to view yours before or instead of the rest of the pack.
Hi I just listed mine at a good price and got a realtor to do it for 4%. It went on Thursday and I already have 4 showings set up this weekend. I had it on at 5% last April and didnt have any showings in 2 months time. Also it was not priced right in April. So I beleive if you have it priced right 2 and 2.5 is not going to make a difference. Mindy
Hi I just listed mine at a good price and got a realtor to do it for 4%. It went on Thursday and I already have 4 showings set up this weekend. I had it on at 5% last April and didnt have any showings in 2 months time. Also it was not priced right in April. So I beleive if you have it priced right 2 and 2.5 is not going to make a difference. Mindy
No offense here Mindy, but your very limited experience with this, which now includes one property listing and 4 scheduled showings, is not a barometer for what will work in the broad market. It's just one example of some interest in a newly listed house. Or perhaps, as I said earlier, your house has something that can't be had in any of the other homes on the market there. Good for you & I hope it all works out and one of these showings makes an offer this weekend. But who can say that you wouldn't have had 5 showings scheduled, or 6, with a higher co-op offer to buyers agents?
A factor I'm not seeing mentioned is that it also depends on your agent. A good real estate agent should be networking with other agents in their office and other offices to get buyers through the door, at 4, 5, or 6%.
When I sold my house in MA last fall, agents were turning themselves inside out to get showings at any percentage. One agent I met took her own house off the market because she couldn't sell it. That wasn't the kind of market where anyone could afford to pooh-pooh a showing for .5-1%.
The condition and desirability of your house is also an important factor. Great houses at great prices seem to sell themselves regardless of what commission is offered. I've seen a few houses on the market for almost 2 years that I'd bet cash money you could offer 10% commission and still not sell them.
The number of showings you get will be based on how well you price your home, the condition, location, and offering a decent commission. You may want to see if the 5% will go 2.7% to the buyer agent and keep 2.3%. The more expensive your home is, the less this commission difference is a factor.
Well, after trying to "FSBO" for a while we have decided to list with a Realtor. We have the option of a 5% or 6% commission. How much difference does this really make in terms of getting buyers in the door? Does half a percent (3% vs. 2.5%) really give a boost to the number of showings?
Not only do you consider the %, you also need to consider the split. In my area most split the commission in half.
In all these commission discussions I keep hearing "2% is better than nothing in this market".
Well if you have an agent that 2 years ago was selling 20 houses and is now only selling 5 houses you know that as a matter of self preservation in that agents head they are thinking "I better get as much as I can on each sale" not "2% is better than nothing".
Why not propose to the list agent that you feel has the best marketing plan that you will give them 7% if it sells in the first 2 months, 6% if it sells in the second 2 months and 5% if it sells in the third 2 months?
Of course that example is predicated upon a 6 month listing and can be adjusted to the actual length of the listing.
In all these commission discussions I keep hearing "2% is better than nothing in this market".
Well if you have an agent that 2 years ago was selling 20 houses and is now only selling 5 houses you know that as a matter of self preservation in that agents head they are thinking "I better get as much as I can on each sale" not "2% is better than nothing".
Why not propose to the list agent that you feel has the best marketing plan that you will give them 7% if it sells in the first 2 months, 6% if it sells in the second 2 months and 5% if it sells in the third 2 months?
Of course that example is predicated upon a 6 month listing and can be adjusted to the actual length of the listing.
This sounds weird to me. So the first 2 months the realtor will try to do a lot, after 2 months he gets less so, he is less interested and so on.....
I would go with the least % and will tell you why. You can always later on if you don't sell put an extra incentive towards the buyers and/or their agent if you feel you need to do something. The market right now is that you only will sell your home if it stands out. Either price wise or because your home is different from others (more upgrades, better location, nicer lot, not cookie cutter), otherwise the market is just what it is. If you start to play the 7% game (which is very, very high in Florida, for the avarage priced home) realtors are going up to 8% soon.
You need the buyers to come through the door with their agent so why don't you try to have your agent get 2% and have him give 3% to the buyers agent. The sellers agent is almost never there to show the home, the buyers agent is, and we all know how much an open house works these days.
Even with the help of the tv realtor from Good Morning America (this was a couple of months ago), and staging a home and doing an open house and lowering the price, it wasn't sold. I It was a very nice house, so even tv programs don't always help.
Make sure that if the realtor and you don't get along (or he isn't doing what you expected), you can get out of the contract. Someone else had a thread about it and was stuck with the realtor for 6 months.
Good Luck
Hey Im just giving my opinion from experience. When I had it on in April at 5% not one person showed up and thats when it was on the market only for a few days. #1 is price. If your priced right I feel it doesnt matter if its 5 or 4%. Again this is from experience and from what I have heard from other people that have sold. Of course real estate agents want to get as much as they can get and I dont blame them but there are sellers out there that have to get as much as they can get in there pocket to especially with the values going down down down so why not try with the 4% and save yourself some money. Mindy
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It was a very nice house, so even tv programs don't always help. 
