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Answers (12)
- Kristine Heilman, "kheilman"
- Contributions:28
I have seen many listings between 5-6% and as high as 10% with some Commercial real estate listings. Again, there is not standard or common rate and it is negotiable. It is key to review your agents marketing plan and discuss how your agent will represent your property. This may include Multiple Listing Services, paper advertisements, magazines, just listed post cards and mailers, websites, social media and more. I have also seen agents offering limited service for very little commission. Discuss this with agents you are interviewing in your area.
- Dunes....
- Contributions:3894
Perhaps this is a good place for Links to the Department of Justice Antitrust Division...Competition in real estate: Questions and answers
Home prices and commissions over time
Competing models of real estate brokerage
Consumers can save thousands of dollars in commissions
"Ten states forbid buyers' brokers from rebating a portion of the sales commission to the consumer. Eight states require consumers to buy more services from sellers' brokers than they may want, with no option to waive the extra items. HUD recently clarified its rule that rebates are permissible under RESPA as long as they are reported on the HUD-1 form."...What are the laws in your state?
HUD explains that rebates are permitted by RESPA
Anticompetitive MLS practices
Home prices and commissions over time
Competing models of real estate brokerage
Consumers can save thousands of dollars in commissions
"Ten states forbid buyers' brokers from rebating a portion of the sales commission to the consumer. Eight states require consumers to buy more services from sellers' brokers than they may want, with no option to waive the extra items. HUD recently clarified its rule that rebates are permissible under RESPA as long as they are reported on the HUD-1 form."...What are the laws in your state?
HUD explains that rebates are permitted by RESPA
Anticompetitive MLS practices
- Corinne Woodman, "cowoodman"
- Contributions:59
The "common" commission varies by market from 5% to 8%, typically half to the buyers agent brokerage firm, and the other half paid to the sellers agent brokerage firm. I will agree that any seller agent who discounts their portion of the commission will typically discount their service and marketing efforts as well. As the good old adage says "you get what you pay for". Hope this helps.
- Dave Bond, "DaveBondRealtor"
- Contributions:18
If your agent doesn't have the ability to stand up to you about what they deserve for their services, how can you expect them to stand up to someone who wants to buy your home for less than what it's worth. I would say TRY to talk an agent down on the commission anyway and if they refuse, you probably have a pretty good agent on your hands who will work for every penny of that commission, including getting you the highest and best offer for your home.
- Mark & Miriam Babb, "MBabb"
- Contributions:13
I think that most of the responses you have received are generally correct, particularly the often repeated note about negotiability. One area to be aware of, and that I don't see addressed yet, is the companies that will list a home on the MLS, and that is about all they do for you. BUT, there are many different models for this kind of "limited service" agent, and they have different cost models, too. Some work from a "menu" of services that you can purchase individually, some offer limited documentation support, and so on. Heather Cutrer's note below makes oblique allusion to this sort of thing, and correctly advises you to fully understand what you are buying with the agent you select. Remember, too, it's not entirely about what marketing you will get - it's that and the responsiveness of the agent, their professionalism, ability to work with clients, negotiate and so on. If you are really getting that super skilled individual like that, they can be well worth whatever rate you negotiate. The key is to actually talk to them (in person, if possible) and see not just the "what" but the "who" of what you are hiring. Good luck!
- Sergio Hernandez, "Sergio Hernandez"
- Contributions:619
No such thing as a common commission! You negotiate the commission with the Realtor you hire.
- Heather Cutrer, "Heather Cutrer"
- Contributions:16
Yes, It is negotiable & yes, you often get what you pay for. (but not always) I would suggest you get a very clear marketing plan as you are discussing commission with your agent. There are a lot of costs in advertising properties for sale and if you negotiate something too low, the selling agent might have to skimp on money he/she spends on advertising. So, I suggest you completely understand and agree with the marketing plan before you sign a listing agreement, this way you should know what to expect and what you're paying.
Also, with it being a buyers' market you may want to consider allowing some commission money for a bonus for a buyer's agent, something to give the buyer's agent a little push to show your property and set it apart from the average stuff out there.
I Hope this helps.
- Leah Henderson, "Columbiahomes"
- Contributions:12
It depends and it is negotiable. The only thing you can really negotiate is your agent's commission. The other agent is probably expecting the standard or average amount for the area. That is negotiable as well. There are no definite commissions for agents.
- Sergio Hernandez, "Sergio Hernandez"
- Contributions:619
It's negotiable! However, remember that in life, you usually get what you pay for.
- Joe Homs, "The Homs Team"
- Contributions:225
The correct answer is "its negotiable." However most agents want 6% for FULL service.
Good Luck
Good Luck
- David Hope, "Dave Hope"
- Contributions:1
It all depends on the area you are in, in my area it is usually 7 or 6 percent on a home and 8 to 10 percent on vacant property. My area is Northern Michigan.
- wehelpubuy
- Contributions:65
Realtors are going to try to sell you on 6%. Most will settle for 5%. I do 4% for my clients. If you want to go low you'll need to do internet research.
How much is a common commission for real estate agent?
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