Quote:
Originally Posted by Brandon Hoffman
This is a very rational statement. Your locale and prices, certainly 5% is common but it's different in some markets. Our median price is around 185k and our most common rate is 6%. Twenty years ago it was 7%. For full time professional in my market, it would be harder to get by on 5%. It could be done if we could get rid of the part-timers and hobbyists because the professionals would have more volume to make up for the smaller commission per transaction. It would also be easier to set mins/maxes.
As per your suggestion for a minimum, it's up to each agent/company do determine what they'll accept. I do personally have a minimum. Some don't. Per the DOJ, we can't do that as an industry because it would be colluding to set commission rates. The DOJ wants commissions negotiable.
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Thanks. Further research shows that 4.5% is a common commission fee in this area, with 2% to seller's agent and 2.5% to buyer's agent.
That's not counting Redfin, which brought a 1% listing fee commission to San Francisco this year. Interesting is that they do have a minimum fee, i.e. "Redfin's home-selling customers pay Redfin just 1 percent of the final sale price,
subject to a minimum of $5,500 in the San Francisco market."
Redfin Brings 1% Listing Fee to San Francisco | Redfin
I wonder if they might change that minimum here as the houses are moving somewhat slower now. I suppose time will tell. It's easy to make money when expensive houses are on the market for a short time and sell for a lot. It's quite another when it takes more time, more effort, more marketing, etc. or in a market where the average property sells for significantly less.
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