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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
Real Estate Commissions are totally negotiable. Sometimes, you get what you pay for. Listing commissions don't go completely to the listing agent. Every transaction has a buyer and seller. The broker gets the money. The brokers split with their agents. In my market 6 to 7% is normal. If my seller sells then buys with me, I give them the discount on the purchase. The money appears on the HUD (closing statement) and it's legal. But all agents and brokerages work differently. And everything is negotiable.
Dee2e is right, commissions are negotiable. BUT in your case, I would say you will only get a break on commission if the house you buy next happens to also be listed by your agent. That doesn't happen in some states but it can. You get what you pay for, advertising is incredibly expensive and agents have a budget that they make depending on the amount of commission they receive from the sellers. So, the better commission rate....the better advertising and MORE advertising your home will receive.
When you sell your house and buy a new one, you don't pay your agent a commission for helping you find the house and write the contract. The sellers pay your agent for finding a buyer for their home. So, I would say in this case....yes you can ask for a lower commission rate but first ask your agent what they are going to have to skimp on in marketing your home if you lower the rate.
Totally negotiable. My realtor will sell my house for 1% (her end) if we use her to buy the next one.
Yes but will she do full service realty for that and will the broker agree to a 1% listing?
We do 1% listings too on the sale side plus buyer broker commission; no short sales, only Internet maketing, no open houses, broker opens, print ads, mailings. Seller handles showing calls, opens, advertising other than Internet advertising, etc.
I would never do what your agent says and provide full service realty. As the broker for my company, I would not let my agents do this either since it costs so much for me to list the home. Partial service for partial fee is fine, but as I said, you get what you pay for.
As far as I know, she would be providing the same level of service as before, but I've only used her in the past so I have no experience with anyone else.
I would also assume that if she offered a 1% rate, the broker has agreed to it as it's not the first time we've done this type of deal and there were no surprises last time.
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
First, there are tons of realtors that will list it for less. Tell them to go find someone else.
second, if they are charging 6%, where is their marketing plan? My guess is a sign and an mls listing. You could do that yourself after a week in RE school and a test or two, then joining the board (about 1200 bucks total)... save you 12,000 on the sale cost.
Shop realtors. Find one you like that is honest and is a bit hungry. Someone walking in at 6% now is lame (unless you are over priced, in which case no realtor will really care about your listing anyway)
and yes, if you are planning to sell through a realtor (and they may possibly find a buyer too) and also buy through them, they should give you a discount. Find someone who will.
However, you would want to put it in writing and only expect the 'deal' to be on the 'buying the new house' side.
6% is not what all realtors charge....some charge 7
As said on the other identical thread, if I were to lower any part of the commission, it would be on the buy side, NOT the list side. Why? Because while the OP most likely doesn't have this in mind, sellers have been known to negotiate a discount on the listing side promising to use the agent on the buy side, and then decided that, no, they're not going to buy after all.
As said on the other identical thread, if I were to lower any part of the commission, it would be on the buy side, NOT the list side. Why? Because while the OP most likely doesn't have this in mind, sellers have been known to negotiate a discount on the listing side promising to use the agent on the buy side, and then decided that, no, they're not going to buy after all.
So if I pay the full 6% to the realtor to sell my home, what would be a reasonable deal I should negotiate when I use the same realtor to buy a home?
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.
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