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I am buying a property and selling my current one (through the same agent). I know that an average commission to the agent is 5%-6% which turns out to be a significant amount off money with all the fees that I need to pay for both transactions.
Would it be possible to negotiate commission for the property that I am selling taking into account that my agent got some commission from the purchase first? One more factor is that I found the property to buy myself, so the agent didn't participate in search, showings, etc. What would be reasonable commission that I can offer?
Often the commission rate is set by the agent's broker but no harm in asking. You don't want to/can't as a practical matter change the commission rate of the agent who represents the buyer of your home.
You could look at the Redfin business model but be aware that they are realtors in a limited number of communities.
Talking about the listing agent's commission. You can negotiate. You should also go further and see how your listing agent is then planning on splitting the commission. And how much that matters to buyers agents in your area. Also ask what you will get for that lower commission. As many good ads? Fewer...what...fewer open houses.
And about the split...if you pay your listing agent, just talking in round figures, 5% when 6% seems more common in your area and if he needs his full 3% side to pay his broker and keep up ads, etc and then offers on the printed listing 2% to the buyers agent....will that be attractive enough to the buyer's agent?
I've known good fast moving markets where the lower commission homes were shown last because there were so many great homes that already met the buyer's needs with full commission.
I've known markets where the pickins were slimmer and this was not done. But many other places where it was. Just a thought.
Some agents will never agree to reduce the commission up front, but will put money in the deal to make it work out once an offer comes in (pay for requested repairs, buy the home warranty, or reduce the commission at that point if the appraisal doesn't come in, for some examples). But many understand that if they reduce it up front, there is nothing left to work with if the deal is right at the edge of being workable.
Of those agents who do agree to reduce it, most of them agree to do the first deal at full price (of your listing and purchase), and reduce the 2nd deal. I would try to see if you can get 2% off overall since you found the house you are trying to buy. You'll still have to offer 3% to the buyer's agent on your sale, and you can't negotiate what the listing agent is getting paid on your purchase.
Of those agents who do agree to reduce it, most of them agree to do the first deal at full price (of your listing and purchase), and reduce the 2nd deal. I would try to see if you can get 2% off overall since you found the house you are trying to buy. You'll still have to offer 3% to the buyer's agent on your sale, and you can't negotiate what the listing agent is getting paid on your purchase.
Yes, this is my second deal with the same agent in last few years. If total commission is 5%, then I can ask my agent about 3.5%-4.5%. As far as I know, the buyer's agent gets 2.5%. Something like this?
There are 4% brokers out there. In my opinion there's no justified reason they deserve 6% commission on a million dollar home, but I'm sure that won't be popular in a real estate forum with realtors saying something like that. They should have a $25,000 cap on commissions in any real estate transaction.
Yes, this is my second deal with the same agent in last few years. If total commission is 5%, then I can ask my agent about 3.5%-4.5%. As far as I know, the buyer's agent gets 2.5%. Something like this?
If the listing agent is willing to give that amount and if the buyer's agent is willing to work in that range.
That said, you'll usually get someone to do either. The thing is negotiating with the really good ones.
we actually offered 1% more to sell our house back in 2012 .
we wanted them concentrating on selling our house , not the one a few blocks a way .
we sold while other homes still go unsold today . sometimes trying to chew them down ends up being very costly when they don't push yours as hard as they could .
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They should have a $25,000 cap on commissions in any real estate transaction.
