Average Selling Commissions?

Per the law in Colorado, all commission rates are fully negotiable. Some houses sell very easily and then there are the others...(short sales, overpriced listings, odd locations, etc.)
So, I have been using a new approach. I only take listings that are priced 'at market' - based on SOLD comparables. After all, that's what the buyers lender is going to use for the loan approval. (or the deal will crash anyway) Then, I charge a 2% listing commission (plus 2.8 for the 'selling' broker) I believe that selling is more work than listing. So, is this the new normal? My friends at the national franchises don't agree.......
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 05 2012 - Highlands Ranch
We think we've answered this question for you!
 
 

Replies (9)

from new york:
I take listings at either 4,5or 6%

and usually split it even between each side.

Remember the listing side is the side that spends the money on all the advertising.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 05 2012
We always offer a 50/50 split no matter what.  While anti-trust laws prohibit statements about "average" commissions due to the price fixing fears, I will tell you what we charge.  Here in Florida all commissions ARE negotiable.  My broker charges a 6% commission on residential and 10% on vacant land.  We, as REALTORS(R) under her, are allowed to negotiate within reason when we take a listing but she prefers we inform her first.  Anything over $500,000 we usually will start at 5%.

I do agree that being a buyer's rep is a LOT more work but as Steven said, the list side spends all the marketing dollars.

Jeff Metcalf, REALTOR(R)
Watson Realty Corp.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 06 2012
Some local 'big franchise' agents have taken issue with discounting commissions. They say that with the company split, they need to charge more.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 27 2012
Profile picture for Dunes ..
From the Dept of Justice website

"In many parts of the country, the traditional full-service real estate broker now faces competition from a variety of real estate brokerage models, many of which use the Internet to reduce costs:

Fee-for-Service Arrangements

Brokers willing to sell a subset of real estate brokerage services, often called fee-for-service brokers, have emerged throughout the country. Fee-for-service brokers "unbundle" the package of real estate services typically offered by traditional full-service real estate brokers and charge a set or hourly fee for specific services, such as listing the house in the MLS, negotiating or closing contracts, and pricing the home. These brokerage models typically enable consumers to save thousands of dollars by allowing them to purchase only those services they want.

Learn more: Fee-for-Service Brokers

Rebates and Inducements

Some real estate brokers have increasingly begun to compete for customers by offering cash rebates or other inducements to home buyers and sellers. Rebates that go directly to buyers or sellers lower costs on both sides of the transaction. Cash rebates are usually calculated as some fraction of the broker's commission and can result in thousands of dollars being returned to the consumer."

(Example:Colorado allows Brokers to offer Rebates..Florida allows Brokers to offer Rebates..New York allows Brokers to offer Rebates)What are the laws in your state?

New business models can save consumers money

Most consumers want to make as much money as possible on the sale of their home and spend no more than necessary when purchasing a home. In many cases, the standard broker's commission can offset a portion of the equity value that has been building up in a seller's home or push the price of a home beyond a buyer's purchasing power. Consumers who want to perform some of the steps involved in selling a home can reap significant financial savings by purchasing only those real estate brokerage services they actually want.

Just as the Internet has made it easier for consumers to save money by directly purchasing plane tickets and stocks, it is now making it feasible for home sellers and buyers to do more of the work themselves and pocket the savings."

Competing models of real estate brokerage



  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 27 2012
Profile picture for PukonYukon
The mere discussion of a fee or of a fee split borders on a per se violation which only has to be proven to occur not proven to cause damages.
If I were an REA on this thread I beleive I would be begging Zillow to delete it.   You might want to brush up on your reading there folks.  You have created great risk for yourselves even though you've qualified by reminding people it's always negotiated you've still shared what you commission is and your split etc.

don't know about others but I like agents that know the laws that govern their occupation (as well as similar occupations since anti-trust is not specific to RE)
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 27 2012
Profile picture for selling next year
This guy must work for a national franchise trying to protect his golden goose......
The market is changing, the extra equity is not there anymore for him to skim.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 27 2012
Dunes - great post, especially this link about commissions
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 28 2012
Pukon, I am in total agreement with you.........I have just about given up 'splaining it!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
September 28 2012
Our Company Lists Property for 1700 Flat! We are full Service and provide world Class Photography and representation!
TRELORA.COM  
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 03 2012
 
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
Related Discussions
Average Selling Commissions?
Profile picture for Joshua Hunt
Latest reply by Joshua Hunt
December 03 2012 | 9 answers
Highlands Ranch Market Data - January 2012
  • Posted by Tara & Doug Simmons - Area Pros!
  • In Housing Market
  • February 06 2012
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 10026 Keenan St, Highlands Ranch, CO Home For Sale
    10026 Keenan St, Highlands Ranch, CO 80130

     For Sale: $435,000

    • Beds: 4
    • Sqft: 2862
    • Baths: 3.0
    • Lot: 8799
  2. 2223 Hyacinth Rd, Highlands Ranch, CO Home For Sale
    2223 Hyacinth Rd, Highlands Ranch, CO 80129

     For Sale: $310,000

    • Beds: 4
    • Sqft: 1999
    • Baths: 3.0
    • Lot: 4487
  3. 8413 Tanglewood St, Highlands Ranch, CO Home For Sale
    8413 Tanglewood St, Highlands Ranch, CO 80126

     For Sale: $344,900

    • Beds: 4
    • Sqft: 3687
    • Baths: 3.0
    • Lot: 8276