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That varies from agent to agent (and their brokers - remember, your listing agreement is with the broker, not the individual agents, and some brokers have limitations on what the agents can do).
Also, it varies depending on what the co-broke offered by the listing agent is. I can imagine a situation in which your buyer's agent could end up paying you for the privilege of doing the work for you, in some cases.
You are paying too much. Just cut the agents loose and hire an attourney. You'll save time, money...and probably the sale of your house.
If you insist on using an agent, then you tell them what YOU THE CUSTOMER is willing to pay. If they don't like it... move on to the next one of a million agents. I think you'll find them all too willing to knock each other down for a cut of your transaction.
This method is good if you are shopping for a new TV, just shop around to find which store has it cheapest.
Telling someone to choose an agent just because they are charging a lower commission is bad advice.
You are paying too much. Just cut the agents loose and hire an attourney. You'll save time, money...and probably the sale of your house.
If you insist on using an agent, then you tell them what YOU THE CUSTOMER is willing to pay. If they don't like it... move on to the next one of a million agents. I think you'll find them all too willing to knock each other down for a cut of your transaction.
An attorney can't get you in the MLS and this is not the market for that type of sale.
FYI, I don't negotiate with my plumber, electrician, pool/spa tech or dentist either. I find the one that I think will do the best job and hire them. If it costs more, so be it.
For the record, buyers don't negotiat the commission on a sale. Sellers, through their listing contract offer a cobroke. That cobroke goes to the buyer agent broker. The Buyer agent broker splits this cobroke with their agent. Usually, the only thing a buyer agent does is offer an amount of their share to the buyer, which must be disclosed on the HUD at closing.
You are paying too much. Just cut the agents loose and hire an attourney. You'll save time, money...and probably the sale of your house.
If you insist on using an agent, then you tell them what YOU THE CUSTOMER is willing to pay. If they don't like it... move on to the next one of a million agents. I think you'll find them all too willing to knock each other down for a cut of your transaction.
Other than the fact that buyers aren't paying a commission, buying the cheapest product usually results in getting what you pay for, and the fact that the buyer can't interfere with the seller/agent relationship....
Attorneys don't talk to lenders, meet appraisers/contractors/inspectors, show homes, have access to MLS, follow up with all parties in the transaction, explain inspections or the closing process, send copies of the contract to all parties in the transaction, work nights and weekends, run a market analysis, know the current market, etc. But other than that you could hire an attorney to write a contract for you and close the loan.
Not sure what state you're in but in CA, there is no commission you pay as a buyer. The seller pays the commission. So if you're selling your house and pay 6%, your agent and the buyer's agent split that, but you pay the full 6%. When you buy, same deal, but the seller is paying your agent. So not sure what "deal" she's cutting you. I have never paid more than 4% to list any of my properties. I am selling right now and am using FSBO.com and for $800 a limited service where an agent will put it in the MLS. I have a lockbox combination that my doorman has in his desk and the agents have to leave their card with him to access the lockbox, or I'm usually home and will show it myself. I've had tons of traffic. It's an upper end property, so no offers yet. But the other 4 units in my building who have agents listing them haven't sold either. If everyone else's was selling but mine, then I'd have to concede that I needed a realtor. I don't think I'll ever use a realtor again. I can do everything they can do. I do pay a commission to a buyer's agent. So it's really a matter of how much work you're willing to do to save that $ in commission.
If you're selling and buying with the same agent, I would never pay more than 4% to 4.5% to list my property on the sell end.
Realtors will flame me now, but I went to school and got a real estate license to do this myself. It seemed a very overpriced service to me.
[quote=kj22166;8156505]I am going to be selling my current home ($400k) and purchase another home in the same area. I am interviewing realtors now and they both said they would charge 6% for selling. If I am buying & selling using the same realtor should I be able to negotiate a lower commision rate for selling? What is acceptable? How do I go about this?
Much Thanks,
Kelly[/QUOTE.
I would gladly take a 1% commission and offer the buyers agent 2-1/2%. This is done all the time. If you use me to buy your next home I would sell yours for free. [mod] not allowed, read TOS [/mod]
Last edited by SouthernBelleInUtah; 08-07-2013 at 10:35 AM..
I do not know how an agent would handle this but I can tell you as a business person I want two separate deals in case you dump me on the second. Like someone says I am going to buy 10. I want 10% off each. I say I can give 10% off on a purchase of 10 but not 10% off on each one. Sign a contract to purchase 10 at the price of 9. Typical reply was well I am not ready to buy all 10 right now. Aha...the gottcha.....LOL
My experience says that the real estate agent business is going to get what they can. Many say well the commission will be 6% but if I list and sell it then only 4%. I do not trust them even if they could. I think they bring "someone/friend/pillow sharer/fellow agent from same broker, etc." in on the deal so you end up paying 6%.
Are they bad people? No. Do they only get paid when the deal happens? Yes. Do they lie? Most do not. Do they not answer the question if not asked? Most do. Anyone that only gets paid when the deal happens is probably going to "shall we say gloss over things" to make it happen. It is the nature of the sales profession (real estate, cars, computers, insurance, stocks, flooring, etc.). If one does not make the deal happen, they will soon find themselves out of a job, if not starving first.
One can say well I am glad I not in sales. Well if you are in private business the bottom line is if no sales are made, there is no need for any of you. If sales die, it is only as matter of times before you are a casualty. The sales person is often the first, but they are far from the last casualty.
Make $hit happen. Sell something.
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Yes . Do not pay over 3-1/2% Total
